- Abba Aliyu, Managing Director of the Rural Electrification Agency, endorses the House’s decision to investigate the use of renewable energy funds since 2015.
- The investigation, led by the Committee on Renewable Energy, will review $2 billion in investments and grants to ensure they translate into tangible sector improvements.
- Despite attracting significant funds, including a $750 million World Bank facility and a $200 million project from the African Development Bank, noticeable improvements in the sector remain lacking.
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, welcomes the House of Representatives’ decision to investigate Ministries, Departments, and Agencies (MDAs) handling Nigeria’s renewable energy funds sector.
In an interview, Aliyu stresses the need for scrutiny, aligning with public demand for better electricity supply amid rising energy costs.
This follows a motion by Jesse Onuakalusi, representing Oshodi-Isolo II Federal Constituency, Lagos State. Onuakalusi calls for an inquiry into approximately $2 billion invested in renewable energy from 2015 to date. The resolution, “Need to Investigate Investments in Renewable Energy Sector and Foreign Grants Received from 2015 till Date,” directs the Committee on Renewable Energy to examine MDAs’ activities and report within four weeks.
Lawmakers cite significant investments and grants, including a $750 million World Bank facility approved in December 2023 and a $200 million African Development Bank project in 2020. Despite this, they note no visible improvement in the sector.
Aliyu highlights the positive impact of these investments, especially in off-grid energy solutions. “Support from Development Finance Institutions revolutionised the sector,” he says. He points to over 150 privately financed mini-grids and stand-alone solar systems benefiting more than 5 million Nigerians.
“These grants catalyse private sector investment,” Aliyu states. “The Nigeria Electrification Project sees private developers, financiers, and investors contributing significantly to the off-grid sector.”
The probe seeks to ensure financial inflows result in real improvements in Nigeria’s renewable energy infrastructure. It aligns with the nation’s goal of providing sustainable electricity for all.
Aliyu reiterates the importance of these funds in developing an off-grid ecosystem. “We witness growth in private developers, equipment manufacturers, and investors,” he adds. “Grants and loans fostered an entire ecosystem in the sector.”
The House resolution mandates a thorough investigation into how funds have been utilised. It aims to hold MDAs accountable and ensure that investments translate into tangible benefits for Nigerians.
The REA Managing Director expresses confidence that the investigation will reveal how funds drive sectoral development. He stresses the importance of transparency and accountability in handling substantial investments.
Aliyu concludes by highlighting the need for continued support from development partners. “Grants and loans from DFIs and other partners prove crucial,” he says. “They revolutionise the off-grid sector and bring substantial benefits.”
The investigation aims to clarify the effectiveness of past investments and guide future initiatives in the renewable energy sector.