From Juliana Taiwo-Obalonye, Abuja
The National Economic Council (NEC) has committed to enhancing the implementation of the National Electrification Strategy to address the persistent failures of Nigeria’s power grid.
Vice President Kashim Shettima, who chairs the NEC, stressed that access to electricity is a fundamental right essential for economic growth, likening it to “the oxygen of economic growth.” This initiative aims to ensure broader energy access across the nation, reflecting the government’s dedication to improving the electricity supply and supporting economic development efforts in Nigeria.
According to a statement issued by the VP’s media aide, Stanley Nkwocha, the Council has accordingly constituted a committee on National Electrification to help address the challenges in the power sector.
He said the formation of the committee was among the decisions taken by NEC at the end of its 146th meeting on Thursday, chaired by Shettima at the Council Chambers of the Presidential Villa, Abuja.
A committee headed by the Governor of Cross River State, Bassey Otu, has been set up to enhance state engagement with the Electricity Reform Act 2023 and the National Electrification Strategy and Implementation Plan.
According to the statement, the establishment of the committee followed a presentation from the Managing Director of the Rural Electrification Agency (REA), highlighting the necessity for a reformed and diversified electricity system in Nigeria.
The NEC emphasised that empowering states will facilitate improved accessibility and affordability of electricity, enabling all regions to effectively address their unique energy requirements.
Other members of the committee include Governors Dikko Radda of Katsina, Inuwa Yahaya of Gombe, Ademola Adeleke of Osun, Hope Uzodimma of Imo, and Caleb Mutfwang of Plateau. Also included are the Ministers of Finance and Coordinating Minister of the Economy, Wale Edun; Budget and Economic Planning, Atiku Bagudu; Power, Adebayo Adelabu; Special Adviser to the President on NEC and Climate Change; Special Adviser to the President on Power; Managing Director of the Rural Electrification Agency (REA); and Managing Director of the Niger Delta Power Holding Company.
Shettima identified several pressing issues that the council must address, including energy infrastructure, human capital development, creative industries, fiscal strategy, industrial innovation, and long-term development planning. He emphasised that these areas are essential for Nigeria’s transformation. To facilitate this, he announced that experts and stakeholders from key sectors have been invited to share their insights and contributions during upcoming discussions.
He stated, “The past few months of collapses in our national power grid compel us to reinforce the pace with which we are adopting and implementing the National Electrification Strategy. Energy access is a fundamental right, not a privilege. It is the oxygen of economic growth.
“Our blueprints must, therefore, strive to expand access, empower rural communities, and drive productivity, especially for MSMEs. I hope that our discussions today will inspire solutions to light up homes, power businesses, and fuel Nigeria’s industrial future.
“Whatever path we agree upon, it is clear that a private-sector-led distributed renewable energy generation approach is essential to increasing electricity access for households and small enterprises alike.”
The Vice President also urged the Council to take Nigeria’s creative industry seriously, saying it presents an avenue to redefine the nation’s economic trajectory.
According to him, “New technologies have not only amplified the global appeal of our arts, crafts, and culture but also opened up revenue streams and job opportunities for Nigerians.
“Our music, films, art, and cultural heritage are not just global symbols of Nigeria’s soft power but also vital engines of economic growth. We cannot afford to relegate the promise of turning creativity into wealth, empowering our youth, and positioning Nigeria as a hub of innovation and cultural excellence,” he added.
Key highlights of the meeting included a presentation by the Accountant General of the Federation, who provided an update on account balances as of November 20, 2024. The Excess Crude Account stands at $473,754.57, while the Stabilization Account holds N33,324,135,076.39. Additionally, the Natural Resources Account has a balance of N26,847,747,874.93. The meeting also featured a presentation from the National Programme Coordinator for Special Agro-Industrial Processing Zones (SAPZs), Kabir Yusuf, who discussed the initiatives and objectives of the SAPZ programme.
The programme is currently being implemented at varying stages in eight states of the federation, namely: Kano, Kaduna, Kwara, Oyo, Ogun, Imo, Cross River, and FCT, under phase 1 of the Special Agro-Industrial Processing Zones.
Under the second phase, a total of 24 states were visited by the selection team to assess their readiness for the programme. The implementation model is a government and private sector-led (SPV) arrangement; hence, discussions are underway to partner with private developers and co-financiers on the project, estimated to cost about $1 billion.
The SAPZ coordinating office is working out a multi-tranche financing arrangement to accommodate additional states over the next three years. It is structured in three tranches.
Key prayers and resolutions were outlined regarding the Special Agro-Industrial Processing Zones (SAPZ) initiative. Participants called for the provision of intervention funds to enhance each state’s Agricultural Transformation Centers (ATC) and urged the Office of the Vice President to leverage its influence to secure additional co-financing for the second phase of SAPZ (SAPZ-2).
They also emphasised the need to expedite the $300 million multi-tranche financing from BADEA through the Federal Ministry of Finance.
The Council urged states to actively engage with the SAPZ programme, highlighting its potential as a transformative initiative if adequately supported.
Additionally, states were encouraged to convene a special meeting with the Minister of Agriculture and SAPZ management to address concerns and requests raised during the presentation.
The Minister of Finance presented a request to the National Economic Council (NEC) to ratify the nominations for the chairman and members of the governing council of the Nigeria Sovereign Investment Authority (NSIA). Once appointed, these members will have the opportunity to engage with the Board and Management of the NSIA, raising questions and providing counsel.
The Council commended NSIA’s management for its crucial role in investing in key economic sectors and approved the Authority’s request to onboard First Abu Dhabi Bank (FAB) as an alternate custodian.
Additionally, the Executive Vice Chairman/CEO of the National Agency for Science and Engineering Infrastructure (NASENI) showcased the agency’s latest innovations, including a solar irrigation pump, electric vehicles, coal-based fertilizer, solar home systems, and smart devices.
The Council urged states to utilise NASENI’s tailored support for manufacturing and industrial development to foster economic growth. It also directed NASENI to repair agricultural machinery nationwide and expand the establishment of lithium battery factories in resource-rich regions.