The Rural Electrification Agency (REA) has signed a Memorandum of Understanding (MoU) with Oando Clean Energy (OCEL) to boost collaboration between the private sector and Government Agency towards the deployment of sustainable renewable energy access across the country.

The MoU was signed at the corporate headquarters of REA in Abuja on Tuesday, June 13, 2023. The MoU forms the basis of a Public-Private arrangement between REA and OCEL to achieve the objectives of the Agency in the electrification of rural communities, specifically through the deployment of solar infrastructure (solar power solutions).  The parties recognize the potential benefits of the deployment of solar infrastructure for power generation in order to pull the trigger for commercial and enterprise growth in these communities.  

There are approximately 92 million Nigerians without access to electricity in the country, most of whom reside in rural areas. To this end, the Federal Government set a target to power 5 million homes through the REA, and partnerships with the private sector. This MoU gives OCEL access to target communities for the rollout of solar mini grids towards the achievement of energy security, power accessibility and affordability.

Speaking at the MoU signing, Engineer Ahmad Salihijo Ahmad, the Managing Director & CEO of REA, said that one of the best ways to mitigate the effects of subsidy removal in Nigeria is by exploiting opportunities to optimize the critical role of renewable energy. He further expressed his delight about the REA and Oando partnership, saying that it will bring about mutually beneficial collaboration, knowledge exchange and experiences all targeted at achieving the common goal of optimizing renewable energy.

The Oando brand has been a key player in the energy space for over twenty years and today is making significant in-roads in the renewable energy space through her newest subsidiary, Oando Clean Energy (OCEL) which was launched in 2021.

Speaking at the signing event Dr Ainojie ‘Alex’ Irune, President & CEO OCEL expressed his confidence in the collaboration with REA saying “We would not be signing this MoU today if Agencies like the REA didn’t provide an enabling environment. I commend the REA for partnering with the private sector to boost energy access in rural areas across Nigeria. We are clear in our minds that a sustainable solution to ensuring all Nigerians have access to power will be by deploying innovative and captive power solutions that address the unique needs of each community. Furthermore, experience has shown that power is an enabler of productivity thus, it is imperative that we accelerate the work required to boost access to power across the nation.”

As REA continues to play a key role in the nation’s off-grid, renewable energy space, it has maintained a strong history of drawing in private sector investment, facilitating inter-sectorial collaboration, and ultimately, aiding the implementation and delivery of fit-for-purpose off-grid solutions nationwide.

The REA and Oando collaboration mark the beginning of another timely and strategic partnership targeted at exploring new approaches to clean energy development for socio-economic impact in a post-subsidy Nigeria.

While commending the REA for its approach to understanding and leveraging the role of the private sector players to deliver on the task of sustainable energy access across the country, Alex Irune, said that Oando is focused on championing renewable energy in Nigeria and is excited about this opportunity to create value that the country desperately needs.

Barka Sajou, Executive Director Technical Services, REA indicated that delivering sustainable energy access across the nation must go beyond just connections and rather serve as an enabler of growth in communities, while targeting electrification projects to people’s sources of livelihood.

Barbara Izilien, Head of the Solar Power Naija Programme, said “REA continues to deepen private sector engagements to encourage private sector investment to deploy sustainable renewable energy projects across the country. We are trying to grow the funding of the Solar Power Naija and this MoU signing will support the expansion targets of the REA in providing energy access to communities.”

Demola Ogunbanjo, Executive Vice President, OCEL said “Despite Africa only contributing 3.8% of GHG emissions to global numbers, the continent does not experience 3.8% of the impact of climate change, we experience that impact in a much larger form. We recognize the role that energizing the continent through renewable energy sources will play in unlocking the potential of Africa. Today, over 600 million of Africa’s 1.3 billion people don’t have access to power. Over 10% of that number are in Nigeria, with this MoU signing, we will start to power the most marginalised communities so they can begin to build infrastructure for a more viable and thriving economy.”

REA is the implementing Agency of the Federal Government of Nigeria for electrification of rural and unserved communities. The Agency’s mandate includes promoting rural electrification, co-ordination of rural electrification programs, and the administration of the Rural Electrification Fund (REF) to promote, support and provide rural electrification through Public and Private Sector Participation.  Over the years, the Agency has strengthened ties with key stakeholders in the private sector and the development space. Beyond that, the Agency has realigned itself with State Governments as they continue to play a pivotal role in the Agency’s consistent deployment of people-centred electrification projects.

Since the incorporation of OCEL in August 2021 the company’s mandate has remained the design and development of climate friendly and bankable energy solutions.  The company will continue to seek collaborations with relevant Government Agencies as they scale up Governments efforts towards the achievement  of the country’s net zero commitment by 2060.  More recently, in May 2023 OCEL launched the proof-of-concept phase of its sustainable transport project in Lagos with the roll out of electric mass transit buses and charging stations. This MoU signing with REA is another step in the company’s clean energy journey.

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