Federal MDAs Invest N22.7 Billion in Solar Energy

Federal ministries, departments, and agencies collectively spent a total of N22,782,065,914.14 on various solar power installations across Nigeria in 2024, reports said.

The expenditures, aimed at boosting rural electrification, street lighting, and infrastructure upgrades, were distributed across multiple projects. Below is a breakdown of the expenses:

On March 6, 2024, the Federal Ministry of Agriculture and Food Security headquarters paid M3 @ JW Ltd N573,537,170.75 for the emergency construction and installation of solar streetlights in Kaoje and Ambursa in Kebbi State.

On March 18, 2024, the National Rural Electrification Agency disbursed N508,587,421.44 to LRB Global Investment Limited for the supply and installation of solar streetlights in various markets across Lagos State.

On April 6, 2024, the Federal Ministry of Agriculture and Food Security headquarters awarded N713,215,984.98 to 24 Bright Solar Limited for solar streetlights in Rimi Gado, Tofa, and Dawaki Tofa Local Government Areas of Kano State.

On April 8, 2024, Northwest Business Solutions Ltd received N712,778,775.68 from the Federal Ministry of Agriculture for the emergency supply and installation of solar streetlights in Gabasawa, Gwarzo, and Bagwai Local Government Areas in Kano State.

On April 18, 2024, Delicom Nigeria Limited was paid N712,778,745.69 by the same ministry (Agriculture) for emergency solar streetlights in Kunchi, Bichi, and Shanono Local Government Areas in Kano. Similarly, African Modern Electro Ltd received N712,778,775.68 for installations in Kabo and Tsanyawa Local Government Areas.

On April 23, 2024, the National Rural Electrification Agency contracted JRB Solar Investment Ltd. for N626,121,074.56 to install high-output solar streetlights in selected locations in the Northeast geopolitical zone.

The Federal Ministry of Works made several payments, including N653,955,813.95 on August 9, 2024, to JRB Solar Investment Ltd. for solar power installations in flood-affected areas of Lagos State.

In May, African Modern Electro Ltd received N774,127,759.38 for solar streetlights in Kabo, Kunchi, and Tsanyawa Local Government Areas of Kano. Diamond Leeds Ltd received N567,467,525.98 on July 17, 2024, for solar streetlights in Sokoto State.

Monnex Global Resources Nig Ltd secured N873,815,471.68 on July 31, 2024, for slum upgrade projects in Kano, while Apex Global Trend Concept Nig. Ltd received N612,093,023.26 on August 2, 2024, for installations in federal constituencies.

Centerview Business Concept Ltd received N771,229,545.45 on August 26, 2024, for road construction and solar streetlights in Agwara/Borgu, Niger State. Safiatu Global Resources Limited was paid N854,251,921.15 on August 29, 2024, for infrastructure projects in Sokoto.

On September 27, 2024, AU Step Nigeria Limited received N873,994,613.35 from the Transmission Company of Nigeria for solar panel installations at Dawanau market.

In October, the Energy Commission of Nigeria made significant payments, including N1,206,075,615.35 to A Four International Resources Nig Ltd for 3-in-1 solar streetlights in Kano and N1,206,075,534.88 to A.A. Albasu Nigeria Ltd for similar projects in Niger and Bauchi States.

Exclusive Energy Limited was paid N1,206,169,759.53 for installations in Kano and Ogun States. K&H Consultancy Limited received N804,393,674.42 for projects in Jigawa State.

Further payments by the Federal Ministry of Works included N765,507,915.96 to Delicom Nigeria Limited on October 25, 2024, for solar streetlights in Bauchi, and N508,126,499.85 to Dehanet Towers Limited for streetlights along Hassan Usman Road in Katsina.

The Federal Government’s investment in solar energy aligns with its broader strategy to boost renewable energy access across key sectors, including education, health, agriculture, rural communities, and transportation.

The government also plans to deploy mini-grids under the e-HEART project, targeting 80 million Nigerians without electricity to create sustainable economies and curb rural-urban migration.

As part of this initiative, $700 million from the African Development Bank will fund the “Desert to Power” project, harnessing sunlight in northern Nigeria for renewable energy.

The Minister of Power, Chief Adebayo Adelabu, emphasised the significance of off-grid solutions, stating, “The dichotomy between on-grid and off-grid solutions should no longer be seen as a division but as complementary components of a holistic energy strategy.”

Meanwhile, the President of the Nigeria Consumer Protection Network, Mr Kunle Olubiyo, expressed concerns over the nation’s insufficient investment in renewable energy, highlighting the vast disparity between Nigeria’s power generation and global clean energy advancements.

Comparing Nigeria’s renewable energy efforts to China’s rapid growth, Olubiyo noted that China added 160.88 GW of solar capacity within the first nine months of 2024, representing a 19.85 percent year-over-year increase.

“Just the solar power capacity China added in nine months of last year is over 40 times what Nigeria generates and transmits,” he pointed out, citing data from China’s National Energy Administration.

Olubiyo criticized Nigeria’s renewable energy investment in 2024, pegged at over N22bn.

“When you divide that by the exchange rate of $1 to N1,750, it amounts to approximately $13 million. That is how much the Nigerian government invested in renewable energy last year,” he revealed.

He described this figure as “insignificant, especially when considering the severe devaluation of the naira and the urgent need for sustainable power solutions.”

He further called for a paradigm shift in the government’s approach to clean energy investment, emphasising that Nigeria must prioritize substantial funding and strategic policies to achieve meaningful progress in the renewable sector.

“We need to move beyond token investments if we are serious about reducing our dependency on fossil fuels and addressing power shortages,” Olubiyo said.

“If we don’t act decisively, we risk being left behind in the global energy transition,” Olubiyo warned.

The Executive Director of the Electricity Consumer Protection Advocacy Centre, Chief Princewill Okorie, expressed reservations regarding the quality, durability, and supervision of solar installations across Nigeria.

He called for stringent monitoring to ensure compliance with standards.

“It depends on the quality and durability of the solar materials and the competence of those who installed them,” Okorie said.

“Recall that National Assembly members previously implemented solar streetlights as constituency projects—how many of them are functional today? Before investing such huge sums, MDAs should have conducted a thorough analysis of past experiences in the power sector,” he said.

Okorie further lamented the absence of key stakeholders in critical discussions on renewable energy.

“I was shocked to observe that donor organizations and development partners promoting renewable energy failed to participate in the Nigerian Electricity Supply Industry Safety Conference we organized with the House of Representatives Committee on Safety Standards and Regulations in October 2024,” he noted.

“Even the Renewable Energy Association members did not attend. This absence makes it difficult to identify and regulate those importing and selling substandard solar products,” he added.

He advocated for the Federal Government to constitute a Commission of Inquiry to evaluate the power sector in terms of security, funding, and consumer satisfaction.

“Much attention should be given to consumers and non-state actors to understand the true challenges rather than relying solely on public servants who often cover up issues against national interest,” Okorie added.

 

Punch news/Olusola Akintonde