The Rural Electrification Agency (REA) has signed a Memorandum of Understanding with the Budget Office of the Federation, Infrastructure Corporation of Nigeria (InfraCorp), and the Ministry of Finance Incorporated (MOFI) to launch the National Public Sector Solarisation Initiative (NPSSI).
The NPSSI is a government-led flagship programme designed to deploy distributed solar energy across public institutions such as schools, hospitals, security posts, and government offices—to reduce diesel dependency and lower carbon emissions.
At the signing event in Abuja, REA Managing Director Abba Abubakar Aliyu described the initiative as critical to positioning Nigeria as “the renewable energy hub of Africa,” while fostering innovation, local manufacturing, and sustainable financing for energy infrastructure.
“What makes this truly remarkable … 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,” he said.
Phase 0 of NPSSI has been fully funded by the Federal Government at ₦100 billion. Future phases will adopt blended financing models, leveraging private capital from domestic and international investors without relying on sovereign guarantees or creating contingent liabilities.
Tanimu Yakubu, Director-General of the Budget Office, underscored the importance of this initiative in bridging Nigeria’s energy gap and promoting fiscal efficiency.
“Solarisation has come of age as a necessity and NPSSI will provide an added opportunity to optimise the demonstrated ability of public institutions to pay for clean, sustainable energy, which is what the capital market needs to ensure bankability,” he explained.
InfraCorp Managing Director, Lazarus Angbazo, hailed NPSSI as a model for future infrastructure financing.
“For decades, the sector has relied solely on public financing and while government is indispensable, government is not enough to solve the energy challenge … the need to optimize the Federal Government’s NPSSI as a pathway to drive localization of energy capability and supply chain integration.”
MOFI representative Femi Ogunseinde, on behalf of Managing Director Armstrong Takang, emphasised the need for evolving funding approaches to support Nigeria’s shift from fossil fuels to sustainable power.
“Our energy mix has historically been unfairly weighted on fossil fuel, which is expensive to sustain. … We must now chart a new course, one that deemphasises the use of sovereign guarantees, [is] domestically anchored and investment‑ready.
“With far‑reaching objectives, the NPSSI is aimed at sustainably eliminating dependence on diesel generators and high electricity bills, while advancing energy access, sustainability culture and local job creation.”
The REA, established under Section 127 of the Electricity Act 2023, implements key programmes such as the Rural Electrification Fund (REF), Nigeria Electrification Project (NEP), Solar Power Naija (SPN), and others targeting healthcare, education, agriculture, and renewable energy across rural and underserved communities.
