Rural Electrification Agency (REA)
BackgroundSection 88 of the Electric Power Sector Reform Act 2005 provides for the establishment of the Rural Electrification Agency. On March 16, 2006 the Board and Management of the Agency were inaugurated by the Honourable Minister of Power and Steel.
Federal Government of Nigeria's commitment to aggressive rural electrification is expressed in the following policy documents:
- The National Energy Policy
- The Electric Power Sector Reform Act 2005
- Rural Electrification Policy 2005 and
- Social Responsibility
- The National Electric Power Policy 2001
These policy documents outline the principle for Rural Electrification thus:
- Facilitate the provision of steady and reliable power supply at economic rates for residential, commercial, industrial and social activities in the rural and peri-urban areas of the country.
- Facilitate the extension of electricity to rural and peri-urban dwellers.
- Encourage and promote private sector participation in grid and off-grid rural development using the nation’s abundant renewable energy sources while ensuring that Government Agencies, Co-operatives and Communities, participate adequately in enhancing electricity service delivery.
A federal government agency with capacity to mobilize investible capital for sustained public and private-sector investment in rural electrification development in Nigeria for improved living conditions in the rural areas through enhanced agricultural, commercial, industrial and domestic activities.
To provide access to reliable electric power supply for rural dwellers irrespective of where they live and what they do, in a way that would allow for reasonable return on investment through appropriate tariff that is economically responsive and supportive of the average rural customer.
- Promote Rural Electrification in the Country
- Co-ordinate the Rural Electrification Programmes in the country
- Administer the Rural Electrification Fund to promote, support and provide rural electrification through Public and Private Sector Participation
REA Target Groups:
The Agency’s activities target the following areas:
- Remote and inaccessible settlements from Urban areas
- Settlements without access to basic Infrastructural Services
- Agrarian settlements that contribute to the local economy
- Settlements with low socio-economic indicators i.e. income, education & health
These are listed in the Rural Electrification Policy as:
- Promote agriculture, industrial, commercial and other economic and social activities in rural areas.
- Raise the living standards of the rural population through improved water supply, lighting and security.
- Promote the use of domestic electrical appliances to reduce the drudgery of household tasks.
- Promote cheaper, more convenient and more environmentally friendly options to the prevalent lighting methods.
- Assist in reducing rural - urban migration.
- Protect the nation's health and environment through pollution reduction and elimination of other energy-related environmental hazards.
Other supportive measures to achieve the outlined objectives include:
- Improve service standards, including increased availability, reliability and quality of power supply.
- Improve affordability of power through competition, subsidies on capital investments and reduced barriers to entry e.t.c.
- Improve financial sustainability of power supply, through appropriate tariffs policies that reflect costs of operation, maintenance, system compensation, expansion and upgrade and a reasonable return on investment.
- Develop and update Rural Electrification database to facilitate effective planning and efficient coverage.