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FG Asks Japan To Partner On $750m Rural Electrification Scheme

Racheal Oloyede by Racheal Oloyede
February 22, 2025
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The Minister of Power, Adebayo Adelabu, has sought the assistance of the Japan International Cooperation Agency in securing potential co-financing support for the ambitious Distributed Access through Renewable Energy Scale-up Project, a critical initiative aimed at expanding the reach of renewable energy nationwide.

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The $750 million World Bank-assisted programme implemented by the Rural Electrification Agency, is to provide electricity to 17.5 million Nigerians.

This initiative is set to expand energy access in rural and underserved communities, stimulating economic growth and sustainable development.

Adelabu made the request during a high-level delegation of key stakeholders in Nigeria’s power sector to Japan to strengthen bilateral energy partnerships.

The three-day strategic visit served as a critical platform to engage with Japanese energy leaders, policymakers, and industry experts, with a focus on enhancing Nigeria’s power infrastructure, improving grid reliability, and exploring innovative energy solutions.

A statement by the electrification agency on Saturday noted that the Minister and the Nigerian delegation engaged in high-level discussions and technical sessions, gaining insights into Japan’s energy market structure, policy frameworks, and operational models.

The government aim to secure $200 million from the cooperation agency as part of plans to attract over $1 billion in private capital and additional financing from development partners.

The statement read, “The visit resulted in the identification and advancement of key initiatives aimed at strengthening Nigeria’s power sector. Short-Term Grid Reliability Measures – Discussions focused on immediate steps that Nigeria can implement to enhance national grid stability and resilience, leveraging Japan’s expertise in grid operations and maintenance.

“Co-Financing of the DARES Project – The visit advanced JICA’s potential co-financing support for the Distributed Access through Renewable Energy Scale-up Project, implemented by the Rural Electrification Agency. This initiative is set to expand energy access in rural and underserved communities, stimulating economic growth and sustainable development.

“Long-Term Collaboration and Investment Opportunities – The engagements laid a strong foundation for future collaboration between Nigeria and Japan, unlocking opportunities for technology transfer, capacity building, and investments in Nigeria’s energy infrastructure.”

The delegation also explored Japan’s advanced electricity load dispatching mechanisms, the operational framework for generation and distribution coordination, and grid optimisation strategies, which could inform best practices for Nigeria’s power sector reforms.

The statement added that Adelabu and his team further engaged in high-level technical discussions to deepen Nigeria-Japan energy sector cooperation, including a bilateral meeting with the Japanese Parliamentary Vice-Minister of Economy, Trade, and Industry, where both parties explored opportunities to strengthen economic and energy sector collaborations.

“Energy Trading and Market Operations was a major highlight at the meeting as Nigeria’s energy stakeholders examined Japan’s electricity supply system and power exchange market, analysing models that could improve Nigeria’s electricity market efficiency, energy pricing mechanisms, and competitiveness.

“There were technical visits to industry leaders and on-site technical assessments of key Japanese energy facilities: DAIKIN Solution Plaza – Provided insights into energy-efficient and innovative cooling solutions, emphasizing the integration of energy efficiency strategies into Nigeria’s power development agenda.

“At Tokyo Electric Power Company, the team explored Japan’s grid management strategies, resilience planning, and sustainable power solutions, with a view to adopting best practices to enhance Nigeria’s national grid reliability.”

The Minister was accompanied on this high-level mission by: the Permanent Secretary, Federal Ministry of Power, Mahmuda Mamman, the Chairman, Nigerian Electricity Regulatory Commission, Engr Sanusi Garba, the Managing Director, Transmission Company of Nigeria Sule Abdulazeez, and the Managing Director, Rural Electrification Agency, Abba Aliyu.

The visit reflects a unified commitment to transforming Nigeria’s power sector through global partnerships, innovation, and strategic policy implementation.

“The minister expressed its gratitude to JICA for facilitating this invaluable visit and remains committed to leveraging these learnings to implement impactful policies and projects that will drive Nigeria’s energy transformation.

“He vowed that the journey towards a resilient, efficient, and sustainable power sector would continue.”

 

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