President Tinubu Mandates REA to Ensure Steady Power Supply in Public Sector

Ofem Uket

About N100 billion appropriated in the 2025 budget will be spent in quarter 2 of this year to give electricity access to public institutions under the National Public Sector Solarisation Initiative (NPSSI).

The presidential directive was contained in the 2025 budget approval given by President Bola Tinubu to adequately cut down the money spent by public institutions on the purchase of generators and diesel annually.

President Tinubu also made intentional efforts to revitalise the power sector as he secured a $1.1 billion loan from the African Development Bank (AfDB) to provide electricity to 5 million Nigerians by the end of 2026.

It was a bold initiative, which took place at the Mission 300 Africa Energy Summit in Dar es Salaam, Tanzania. President Tinubu acknowledged AfDB’s $1.1 billion is expected to provide electricity for 5 million people by the end of 2026, while its $200 million in the Nigeria Electrification Project will provide electricity for 500,000 people by the end of 2025.

“As Nigeria’s president, I am committed to making energy access a top priority.”

Again, Vice President Kashim Shettima has told the Rural Electrification Agency (REA) to accelerate Nigeria’s journey towards universal electricity access to put the country on the path of economic growth.

The Vice President permitted REA to enter into a partnership with the National Economic Council (NEC) in order to have access to state governors and engage them in the drive towards electrifying rural communities.

The agency said it has secured a grant of $750 million from the World Bank and African Development Bank (AfDB) for rural electrification projects across Nigeria.

Shettima had told REA to be more innovative and deploy a more efficient means of providing uninterrupted power supply to consumers.

He advised the agency to think big in the provision of electricity to the Nigerian people, while he promised to use his office as Chairman, National Economic Council (NEC) to ensure an effective partnership between the Presidency and the 36 state governors to ensure that the government meets the aspiration of the people for access to electricity.

Speaking to journalists in Abuja, the Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, said its 2025 budget is the biggest so far in the history of the agency.

He stated that the first key aspect of its budget this year is the National Public Sector Solarisation Initiative, driven by President Bola Tinubu’s administration to stabilise power supply in public institutions.

Aliyu noted that the essence of the initiative is to empower REA to enable the agency to provide solar electricity to public institutions, in order to enhance efficiency and a more productive public sector in the country.

“When you look at the data of the budget implementation over the years, you will see the quantum of money used by public institutions to buy generators and diesel to provide electricity.

“So, the Federal Government now sees it as a way to reduce the cost of governance and provide REA with funding to solarise these public institutions.”

Abba Abubakar Aliyu listed four main sources of funding for the agency: the World Bank, the African Development Bank (AfDB), the Electricity Market, which is the excess revenue of the liquidator, and grants, which come from partnerships with international development agencies where funds are normally provided to develop different models and concepts in the country.

Aliyu noted that before his appointment as the Managing Director of REA, he was heading the Project Management Unit, which was implementing a $550 million REA project funded by the World Bank and AfDB.

He said the agency has succeeded in securing approval for another grant of $750 million, explaining that the biggest public sector-funded project and implementation is about to commence.

He highlighted some of the electricity projects, including the 12-megawatt plant in Maiduguri, which he said is about to be completed and commissioned in the next two months, adding that the electricity project is serving the University of Maiduguri and the Teaching Hospital, with plans ongoing to extend it to the water treatment plant in the state.

The MD further noted that the new management of the agency is focusing on six key strategic areas, including the National Electrification and Strategic Implementation Plan (NESIP), which outlines the framework that aligns with the federal government’s vision of a sustainable and inclusive energy sector, as well as streamlining the coordination between sub-nationals towards the implementation of electrification across the country.

Public institutions such as federal ministries, departments, and agencies have underperformed and recorded very low productivity, especially tertiary health institutions like the University College Teaching Hospital (UCTH).

The hospitals have been without electricity for months and years, arising from disconnection by distribution companies due to millions of naira in unpaid electricity bills.

The University of Nigeria, Nsukka (UNN) owed the Enugu Electricity Distribution Company (EEDC) a total of N600 million, while the University College Teaching Hospital, Ibadan owed the Ibadan Electricity Distribution Company (IEDC) about N400 million.

Many other public institutions owe various distribution companies huge amounts of accumulated electricity bills that remain unpaid. As a result, public sector organisations are disconnected from the electricity grid, forcing them to rely on generators, which are significantly more expensive.

The presidential directive to the Rural Electrification Agency to ensure public institutions across the country enjoy uninterrupted power supply before the end of 2025 is part of the electricity reforms of President Bola Tinubu’s administration to deliver electricity to homes and the public sector.

Only a few days ago, the Minister of Power, Adebayo Adelabu, sought the assistance of the Japan International Cooperation Agency (JICA) to secure potential co-financing support for the ambitious Distributed Access through Renewable Energy Scale-up Project (DARES), a critical initiative aimed at expanding the reach of renewable energy nationwide.

The $750 million World Bank-assisted programme, implemented by the Rural Electrification Agency, is to provide electricity to 17.5 million Nigerians.

This initiative aims to expand energy access in rural and underserved communities, stimulating economic growth and sustainable development.

Adelabu made the request during a high-level delegation of key stakeholders in Nigeria’s power sector to Japan to strengthen bilateral energy partnerships.

The three-day strategic visit served as a critical platform to engage with Japanese energy leaders, policymakers, and industry experts.

A statement by the electrification agency noted that the Minister and the Nigerian delegation engaged in high-level discussions and technical sessions, gaining insights into Japan’s energy market structure, policy frameworks, and operational models.

The government aims to secure $200 million from the cooperation agency as part of plans to attract over $1 billion in private capital and additional financing from development partners.

The visit underscores a unified commitment to transforming Nigeria’s power sector through global partnerships, innovation, and strategic policy.

*Uket is former SA media to the minister of power and now communication consultant.