BREAKING: Adelabu: $10 Billion Per Year For 20 Years Needed to Achieve Stable Electricity Supply in Nigeria

The Minister of Power, Chief Adebayo Adelabu, on Tuesday, said Nigeria needs $10 billion annually for 20 years to have stable electricity supply.

Adelabu said this same day the federal government through the Rural Electrification Agency (REA) unveiled the third phase of its flagship Rural Electrification Fund (REF), aimed at expanding off-grid electricity access to Nigeria’s most underserved communities.

The minister spoke in an interview with journalists after inaugurating the 2.5mw solar hybrid power project at the Nigerian Defence Academy (NDA), Kaduna.

He said the infrastructure deficit in the power sector had piled up over the last 60 years due to a lack of maintenance, lack of additional investment, and failure to revive transmission grids.

“For us to achieve functional, reliable, and stable electricity in Nigeria, we need not less than $10 billion annually for the next 10 to 20 years.

“But there are some foundational bottlenecks that we experienced in the past that need to be fixed for the spending of this money to have meaning,” the minister said.

He, however, said the present administration of President Bola Tinubu was doing its best to tackle the challenges.

Adelebu said the signing of the energy bill into an Act was one of the important steps taken by the government to tackle the challenges in the power sector.

“This bill has achieved liberation and decentralisation of the power sector to enable all levels of government – federal, state, and local governments to legally and morally play roles in the power sector to give their citizens at sub-national levels electricity.

“This has given autonomy to more than eleven states, and more are still coming.

“They can now play roles in the power sector from generation to transmission to distribution and even metering.

“Secondly, we talk about infrastructure deficit, then we talk about fixing infrastructure deficit which has piled up over the last 60 years due to lack of maintenance, lack of additional investment to revive our transmission grid”, he said.

The minister emphasised the government’s resolve to provide sustainable and reliable energy to critical national institutions.

The project, which was executed by the Rural Electrification Agency (REA), an agency of the Federal Ministry of Power, is part of the landmark Energising Education Programme (EEP) Phase II.

The project will provide uninterrupted electricity to academic buildings, staff residences, barracks, and critical facilities within the NDA.

Earlier in his address, Managing Director and Chief Executive Officer (CEO), REA, Abba Aliyu, described the unveiling of the project as, “a turning point in Nigeria’s journey toward energy access for learning institutions.”

He noted that the agency was not just for commissioning projects, but commissioning social impact, research and sustainable development.

“EEP Phase II is not just an energy project, it is a national mission. We are delivering clean energy to power academic excellence, national security, and innovation,” Aliyu added.

Also in his remarks, the Commandant of the NDA, Major Gen. AK Ibrahim, expressed appreciation to the federal government and the REA for the project.

He said, “This solar hybrid plant is a critical addition to our infrastructure.

“It allows us to train and operate without power disruptions, ensuring we maintain the standards of excellence and discipline expected of Nigeria’s military leadership institution.”

Meanwhile, the federal government through the REA on Tuesday unveiled the third phase of its flagship REF, aimed at expanding off-grid electricity access to Nigeria’s most underserved communities.

The initiative, which was officially launched at a grant agreement signing ceremony and access to finance workshop in Abuja, was expected to attract over N5.6 billion in private sector investment, delivering a total capacity of 9mw of renewable energy.

During the ceremony, the REA also signed several MoUs with about 58 developers, who will see the effective implementation of the programme.

REF, a government-backed initiative, was designed to promote rural electrification by providing financial support to projects and is dedicated to expanding electricity access to underserved and off-grid communities across Nigeria.

Speaking at the event, Managing Director of REA, Abba Aliyu, emphasised the transformative potential of the REF initiative, stressing that the programme will provide over N6.4 billion in capital subsidies to qualified developers for the construction of mini-grids and deployment of solar home systems.

Represented by the Executive Director of Corporate Services, Mr. Gboyega Ayoade, the REA chief stated that since its inception, the Fund has stood as a symbol of innovation, resilience, and measurable impact.

The project, he said, would impact over 31,500 beneficiaries, including households, small businesses, schools, and healthcare centres across rural Nigeria.

According to him, the initiative was expected to generate more than 6,000 direct and indirect jobs while reducing carbon emissions by over 39,000 tons annually.

“As we commence REF Call 3, our mission goes far beyond scaling numbers. It is about scaling impact. This next phase is designed to deepen penetration into underserved areas, catalyse productive use of energy, and foster,” he said.

Highlighting the achievements of the REFs so far, Aliyu noted that the interventions have already delivered 124 mini-grids, over 25,000 solar home systems, and impacted 183 communities across all 36 states and Abuja.

These efforts, according to him, have not only led to the installation of 16.6mw of renewable energy capacity, but also created over 26,000 jobs and helped avoid 91,720 tons of carbon emissions to date.

“These achievements are not just data points. They represent lives empowered, classrooms illuminated, health centres revived, and dual economies set into motion,”Aliyu added.

In her presentation, Executive Director of the REF, Doris Uboh, reiterated that REF, the government’s strategic financing tool to bridge the energy gap in rural and peri-urban areas, was established by the Electricity Power Sector Reform Act of 2005 and revitalised under the Electricity Act of 2023.

“Our journey began with REF Call 1, a N2 billion initiative that deployed 1 megawatt of mini-grid energy and 300 kilowatt peak solar home system, reaching over 24,000 connections across the six geopolitical zones in the country. It demonstrated what was possible when we paired capital with community and vision with execution.

“Next was REF Call 2. Under this programme, we allocated N3.9 billion and delivered 51 mini-grids, deploying a total of 3.9 megawatts, creating over 5,000 jobs and reducing 23,585 tons of carbon emission annually. We attracted over N2.2 billion in private sector investment, affirming that rural education is not a charity. It is a smart and sustainable development goal,” she stated.

She outlined the agency’s strategic framework, including the upcoming e-HEART initiative, which seeks to deploy 3,700 mini-grids to electrify rural healthcare centres, schools, farms, and transport systems with 370mw of clean energy.

With 37 states already engaged and 15 having committed counterpart funding, e-HEART, she said, was set to become Nigeria’s largest decentralised energy project.

Uboh urged developers to adhere to project timelines, quality standards, and sustainability plans, warning that the REA has zero tolerance for failed projects. She also emphasised the importance of clauses in the grant agreement relating to compliance, conditions precedent, and performance.