REA secures funds to link mini-grids and agriculture

The Nigerian Rural Electrification Agency (REA) has launched an initiative to expedite the adoption of renewable energy in agricultural processes to stimulate economic growth.

Awobo Oluwapelumi Yewande Oyewole

The Nigerian Rural Electrification Agency (REA), an implementing agency of the Federal Government tasked with the electrification of rural and unserved communities, officially launched the Energizing Agriculture Program (EAP). The EAP is a three-year initiative funded by the Rockefeller Foundation and launched by the Nigerian Rural Electrification Agency (REA) in collaboration with the Rocky Mountain Institute (RMI) and the Global Energy Alliance for People and Planet (GEAPP). It is a program aimed at promoting the use of mini-grid energy in agricultural activities, which has the potential to boost local economic growth. According to Dr Mohammed Abubakar, Nigeria's Minister of Agriculture and Rural Development, "leveraging renewable energy technologies for productive purpose in off-grid communities helps strengthen the production capacity of the average Nigerian farmer in rural communities."

The EAP program aims to build a pipeline of agriculture-energy initiatives that will benefit the agricultural and energy sectors over the next three years. Across these initiatives, the EAP aims to secure local ownership and scaling of solutions through collaboration and sharing of knowledge.

Agriculture is the economic backbone of rural areas in Nigeria. Experts estimate that Nigeria's agriculture sector, which accounts for around a quarter of GDP and employs roughly two-thirds of the workforce, has the potential to generate $40 billion in exports. Utilizing energy, such as the mini-grid, will enhance rural development whilst improving the performance of the agricultural sector.

The EAP will advance agriculture and electrification activities in Nigeria, accelerating the deployment and adoption of the most successful solutions by bringing together local partners to verify commercially driven business models and scale proven solutions. EAP's potential to electrify agricultural loads and increase agriculture productivity will contribute to rural development, enhance income generation, community resilience, support demand, jobs and SME growth, all of which are critical to uplifting low-income communities in Nigeria.

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Yewande Oyewole

Investment Professional | Renewable Energy Sector (Scribing in personal capacity)