REA, InfraCorp, Budget office sign MoU to light up schools, hospitals, security posts, others

By Chris Ochayi

ABUJA: The Rural Electrification Agency, REA, has signed a Memorandum of Understanding, MoU, with the Budget Office of the Federation, Infrastructure Corporation of Nigeria (InfraCorp), and the Ministry of Finance Incorporated (MOFI), with a view tol launching the National Public Sector Solarization Initiative (NPSSI),

The initiative is a flagship of government-led programme designed to accelerate the deployment of distributed solar energy solutions across Nigeria’s public sector institutions, including schools, hospitals, security posts, government offices, and more.

The joint agreement was signed on Thursday, 7th August, 2025, at Budget office in Abuja, the nation’s capital.

At its core, this initiative was birthed from a strategic national priority: the urgent need to power critical infrastructure with clean, reliable energy, while moving away from diesel dependence and reducing the public sector’s carbon footprint.

The signing ceremony for the National Public Sector Solarization Initiative (NPSSI), Ministry of Finance in Abuja, not only strengthens the alliance and collaboration between the government and the private sector in the energy sector but also aims to advance the nation’s drive for localized renewable energy infrastructure and reverse unsustainable energy financing mechanisms.

In his remarks, the Managing Director/CEO of the Rural Electrification Agency, Abba Abubakar Aliyu noted that the NPSSI is part of a broader strategy to position Nigeria as the renewable energy hub of Africa, while promoting innovation, local manufacturing, and sustainability in energy infrastructure financing in Nigeria.

What makes this truly remarkable, he said, “is the collaborative spirit behind it. We are witnessing a new era of inter-agency synergy, driven by creativity, fiscal responsibility, and a shared determination to reduce the cost of governance while meeting our national energy transition goals”.

While providing an overview of the initiative, Aliyu explained that “the NPSSI is a flagship, government-led programme designed to accelerate the deployment of distributed solar energy solutions across Nigeria’s public sector institutions: schools, hospitals, security posts, government offices, and more.

The MD REA further explained that “at its core, this initiative was birthed from a strategic national priority: the urgent need to power critical infrastructure with clean, reliable energy, while moving away from diesel dependence and reducing the public sector’s carbon footprint”.

Phase 0 of the NPSSI is fully funded by the Federal Government of Nigeria to the tune of ₦100 billion.

Subsequent phases will harness innovative and blended financing models, leveraging private capital from both local and international long-term funders, all under structures that eliminate sovereign guarantees and contingent liabilities.

Similarly, speaking at the event, Dr. Tanimu Yakubu, the Director-General of the Budget Office of the Federation, emphasized the significance of the initiative in addressing Nigeria’s long-standing energy gap and strengthening the fiscal efficiency of public sector operations.

He explained that “solarization has come of age as a necessity” and NPSSI will provide an added opportunity to optimize “the demonstrated ability of public institutions to pay for clean, sustainable energy, which is what the capital market needs to ensure bankability”.

Dr. Lazarus Angbazo, MD/CEO of InfraCorp, hailed the initiative as a model for the future of infrastructure financing in Nigeria. He explained that “for decades, the sector has relied solely on public financing” and “while government is indispensable, government is not enough to solve the energy challenge”, hence the need to optimize the Federal Government’s NPSSI as a pathway to drive localization of energy capability and supply chain integration.

Dr. Armstrong Takang, MD of MOFI, who was represented by Dr. Femi Ogunseinde, MOFI’s Chief Investment Officer added a strategic perspective on the need for evolving funding models for Nigeria’s energy sector.

He explained that “our energy mix has historically been unfairly weighted on fossil fuel, which is expensive to sustain. We must not underestimate the importance of creating business models that drive down the cost of power while expanding access.

We must now chart a new course, one that deemphasizes the use of sovereign guarantees, domestically anchored and investment-ready”

With far-reaching objectives, the NPSSI is aimed at sustainably eliminated dependence on diesel generators and high electricity bills, while advancing energy access, sustainability culture and local job creation.