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FG Seeks Japan Co-financing Support for Rural Electrification Projects

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2 months ago

Feb 22, 2025.

The ambitious $750 million initiative, backed by the World Bank and implemented by the Rural Electrification Agency, aims to provide electricity to 17.5 million Nigerians in rural and underserved communities.
During the three-day strategic visit to Japan, Nigeria’s Minister of Power, Adebayo Adelabu, led discussions on Japan’s energy market structure, policy frameworks, and operational models, according to a statement from the electrification agency.

Nigeria’s Minister of Power, Adebayo Adelabu, has reached out to the Japan International Cooperation Agency (JICA) for potential co-financing support for the Distributed Access through Renewable Energy Scale-up Project (DARES).

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Eko Hot Blog reports that the ambitious $750 million initiative, backed by the World Bank and implemented by the Rural Electrification Agency, aims to provide electricity to 17.5 million Nigerians in rural and underserved communities.

With a focus on addressing the energy needs of underserved populations, DARES holds the potential to significantly improve the lives and livelihoods of millions of Nigerians.

Adelabu made the request when he led a high-level delegation of key stakeholders in the nation’s power sector to Japan.

The primary goal of the three-day strategic visit was to foster bilateral energy partnerships, enhance Nigeria’s power infrastructure, improve grid reliability, and explore innovative energy solutions.

FG Seeks Japan Co-financing Support for Rural Electrification Projects
During the three-day strategic visit to Japan, Nigeria’s Minister of Power, Adebayo Adelabu, led discussions on Japan’s energy market structure, policy frameworks, and operational models, according to a statement from the electrification agency.

The Nigerian delegation aimed to gain insights and secure financial support for the nation’s power expansion plans.

The government is seeking $200 million from the JCIA to help attract over $1 billion in private capital and additional financing from development partners.

These funds would support the expansion of energy access in Nigeria, particularly in rural and underserved communities.

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.”

FG Seeks Japan Co-financing Support for Rural Electrification Projects
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.