The Federal Government, on Tuesday, signed two Memoranda of Understanding (MoUs) with Mutual Commitment Company (MCC) Limited, a Chinese firm, in a bid to bolster Nigeria’s renewable energy sector.
The agreements were formalized during the African-China Cooperation Summit in Beijing, facilitated by the Rural Electrification Agency (REA), an agency under the Ministry of Power.
Present at the signing ceremony were the Minister of Power, Mr. Adebayo Adelabu, and the Managing Director of REA, Mr. Abba Aliyu.
Speaking at the event, Adelabu highlighted the significance of the MoUs, describing the occasion as a “memorable day for Nigeria.”
“The MoU will go a long way towards achieving Nigeria’s vision for the renewable energy subsector of the electricity sector value chain,” Adelabu stated.
He further praised the REA and the National Power Training Institute of Nigeria (NAPTIN) for their roles in realizing this achievement.
Reflecting on the shared challenges between Nigeria and China, Adelabu noted, “Nigeria and China have a lot in common, one of which is the high population of both countries.
And countries with high population face immense pressure, particularly in energy access and job creation.
Taking steps to address these issues is a cause for celebration.”
The Minister expressed his satisfaction that this milestone was achieved during President Bola Tinubu’s administration, aligning with the “Renewed Hope Agenda” for the country.
He reiterated the government’s commitment to prioritizing the power sector, emphasizing that “energy access and expansion is the government’s major priority because nothing can be achieved without a strong, stable, functional, and reliable electricity sector.”
Adelabu also highlighted the government’s shift from the centralization of power to a distributed power model, aiming to ensure every Nigerian has access to energy.
He pointed out that nearly 40% of Nigeria’s population currently lacks reliable energy access, which has far-reaching consequences for the nation’s development.
“A lot of our population resides in rural areas, and many of our institutions, including educational and tertiary health facilities, still suffer from epileptic power supply.
The adoption of a distributed energy model is crucial to expanding the energy net for these underserved areas,” Adelabu said.
The Minister underscored the importance of renewable energy in Nigeria’s energy mix, noting that the country aims to achieve 30% of its energy generation from renewable sources by 2030, with a long-term goal of net-zero carbon emissions by 2060. “Renewable energy is currently a major focus for us in the power sector,” he added.
The MoUs are expected to significantly contribute to the federal government’s vision for the renewable energy subsegment of the power sector.
Adelabu expressed optimism that the agreements would lead to increased electrification, spur economic growth, and create job opportunities.
“This will save us foreign exchange expenditure on importation and create jobs for our people if we assemble these things locally,” he noted.
Speaking at the event, REA’s Managing Director, Abba Aliyu, emphasized the importance of the MoUs, stating that they are in line with the presidential mandate to build local capacity and create more job opportunities.
He assured that the REA would closely monitor the implementation of the agreements to ensure they deliver on their promises.
“We will track the economic factors that this initiative will drive, the level of GDP contribution, the employment opportunities provided, and the socio-economic activities that will crystallize,” Aliyu said.
Echoing these sentiments, MCC’s Vice Chairman, Yan Zhezhu, expressed appreciation for the Minister’s commitment to Nigeria’s energy growth.
“We are not new to Nigeria, having started in Oyo State a long time ago. Presently, we have ongoing projects in Maiduguri and Kaduna, and we appreciate the cooperation we have so far received,” Yan remarked, reaffirming MCC’s dedication to supporting Nigeria’s energy sector.
