On Tuesday, the Federal Government of Nigeria signed a Memorandum of Understanding (MoU) with Mutual Commitment Company Limited, a Chinese firm, to initiate the assembly of electric tricycles and establish a renewable energy training center in the country.
The signing ceremony, organized by the Rural Electrification Agency (REA), was attended by the Minister of Power, Adebayo Adelabu, and REA Managing Director, Abba Aliyu, in Beijing just before the commencement of the African-China Cooperation Summit.
In a statement released by Adelabu’s spokesperson, Bolaji Tunji, the MoU signing was hailed as a significant milestone for Nigeria. Minister Adelabu emphasized the importance of this event, describing it as a landmark achievement that aligns with Nigeria’s renewable energy goals under President Bola Tinubu’s administration and the Renewed Hope Agenda.
Adelabu extended his congratulations to both the REA and the National Power Training Institute of Nigeria, noting that this agreement would play a crucial role in advancing Nigeria’s renewable energy sector. He highlighted the similarities between Nigeria and China, both large and densely populated countries facing challenges in energy access and job creation, and expressed satisfaction that this initiative is taking place during a period of strategic development.
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The Minister underscored President Tinubu’s commitment to the power sector, which is seen as pivotal for overall economic development. He acknowledged the nation’s historical reliance on a centralized power model and advocated for a shift towards a distributed energy model to better serve rural areas, educational institutions, and healthcare facilities.
Adelabu pointed out that nearly 40 percent of Nigerians currently lack reliable energy access, emphasizing the importance of distributed energy systems that are scalable and independent of the national grid, as vital to expanding energy access and transitioning to cleaner, sustainable energy sources.
The MoU is expected to generate employment opportunities for Nigeria’s growing youth population and support local job creation. Adelabu noted that while some African nations have achieved near-total electrification, Nigeria remains at 62 percent. However, with the country’s abundant natural resources—such as gas, hydropower potential, wind, and solar energy—he expressed optimism about Nigeria’s potential to significantly improve its electrification rate.
REA Managing Director Abba Aliyu highlighted the importance of the MoU in fulfilling the presidential mandate to build local capacity and create job opportunities. He committed to closely monitoring the initiative’s progress and its impact on the economy, including GDP growth and employment.
Mutual Commitment Company Limited, already involved in constructing power plants in Maiduguri and Kaduna, expressed its gratitude for the Minister’s dedication to advancing Nigeria’s energy sector. Yan Zhezhu, the company’s Vice Chairman, reiterated the firm’s commitment to supporting Nigeria’s energy transition and contributing to the nation’s sustainable development.
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