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Minister Adelabu stressed that President Tinubu has placed the power sector at the forefront...
Nigeria signs MoU with Chinese firm to boost renewable energy and electric transportation, aiming to address energy access and job creation challenges.
The Federal Government of Nigeria signed a Memorandum of Understanding (MoU) with Mutual Commitment Company Limited, a Chinese company, on Tuesday, September 3, to collaborate on assembling electric tricycles and establishing a renewable energy training center in the country.
The partnership, facilitated by the Rural Electrification Agency (REA), aims to promote sustainable transportation and energy solutions. The MoU was signed in the presence of Minister of Power, Adebayo Adelabu, and REA's Managing Director, Abba Aliyu, marking a significant step towards Nigeria's transition to cleaner energy.
A statement from Bolaji Tunji, spokesperson for Minister Adelabu, revealed that the signing ceremony took place in Beijing, on the eve of the African-China Cooperation Summit.
Minister Adelabu hailed the event as a “historic moment” for Nigeria, commending the Rural Electrification Agency (REA) and the National Power Training Institute of Nigeria for their efforts. He emphasized that this partnership would significantly contribute to Nigeria's renewable energy objectives and the broader electricity value chain.
Adelabu added, “I know Nigeria and China have a lot of things in common, one of which is the fact that Nigeria and China are both high population countries and with a country with high population, you have so much pressure.
“The first pressure is that of energy access, and the second is job creation. So when you take steps to achieve both, it is a thing of joy. I am particularly happy that this is happening during the tenure of President Bola Tinubu, as it is in line with achieving the Renewed Hope Agenda of the administration for the country.”
Minister Adelabu stressed that President Tinubu has placed the power sector at the forefront of his administration's agenda, acknowledging its crucial role in driving growth and success across other critical sectors of the economy.
He assured that President Tinubu is fully dedicated to supporting the power sector, fulfilling his campaign promises, and prioritizing expanded energy access as a cornerstone of the government's strategy. The minister underscored that a robust, stable, and reliable electricity infrastructure is essential for meaningful progress, emphasizing its importance in catalyzing national development.
“We have relied so much on centralization of our power sector for so long that it is not taking us anywhere,” he stated.
Minister Adelabu revealed that a staggering 40% of Nigeria's population remains without access to electricity, severely hindering the country's development and significantly diminishing the quality of life for millions of citizens.
“So, moving away from centralization, we have decided to adopt the distributed power model to ensure that every Nigerian has access to energy. A lot of our population resides in rural areas, and a lot of our educational and tertiary health institutions are isolated, and they are still facing epileptic power supply.
“We have also found out that the adoption of the distributed energy model will expand the energy net for our rural dwellers, the rural businesses, our universities and tertiary health institutions; which is why the focus is on renewable energy which we believe scalable and can exist in isolation of national grid that is currently facing lots of pressure,” he explained.
As Nigeria strives to expand energy access, it is also committed to transitioning towards cleaner, more sustainable, and environmentally friendly energy sources. The Minister emphasized that the signed MoU marks a significant milestone in achieving the country's vision for a renewable energy-driven power sector, paving the way for a greener future.
“We will be able to produce jobs for our large youthful population that is growing every day. Our polytechnics, technical colleges, and universities are turning up graduates every year without assurance of job placement. This will go a long way to make it happen. At the same time, we will be able to achieve our energy access expansion,” he added.
The Minister noted that several North African nations, such as Tunisia, Morocco, Egypt, and Algeria, have successfully achieved universal electrification, while South Africa has made significant strides with an electrification rate of around 95%, highlighting the potential for Nigeria to follow suit and bridge its energy gap.
“Unfortunately, Nigeria is still at 62 percent, though there are still some African countries with worse levels of achievements, but this is not where we belong. If these countries can achieve this, why is it not possible for Nigeria with the level of our natural endowment? We have the gas, and the dams are also there for the hydropower electric. The wind, both desert and coastal, is there while sunshine is also effective. So, what are we waiting for?
Previously, the Managing Director of the Rural Electrification Agency (REA) underscored the importance of the ceremony, stressing its potential to deliver on the President's mandate by building local capacity, stimulating economic growth, and creating new job opportunities for Nigerians.
“A step like today's will enable us to move up on our level of electrification. This will consequently lead to growth in our Gross Domestic Product because of the economic activities that would be created. This will also save us foreign exchange expenditure on importation and create jobs for our people if we assemble these things locally,” he posited.
“We will track this and ensure the delivery of the commitment within the tenure of the present administration. We will also track the economic factor that this initiative will drive, the level of GDP contribution, the employment opportunities provided, and the socio- economic activities that will crystallize,” Aliyu remarked.
The head of the REA also mentioned that the Mutual Commitment Company (MCC) is already actively engaged in Nigeria, with ongoing projects including the construction of a 12-megawatt power plant in Maiduguri and a 3-megawatt power plant in Kaduna, demonstrating the company's commitment to supporting Nigeria's energy development.
Yan Zhezhu, Vice Chairman of MCC, expressed his appreciation, via an interpreter, for the Power Minister's unwavering dedication to driving progress in Nigeria's energy sector, acknowledging the minister's pivotal role in fostering a conducive environment for successful collaborations like the one being celebrated.
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