Reps Probe $2bn Renewable Energy Investments

Kehinde Fajobi

The House of Representatives Committee on Renewable Energy has called for an investigative hearing to examine the impact of over $2 billion in renewable energy grants and investments in Nigeria, noting that this substantial funding has not led to significant improvements in the nation’s energy security.

The hearing, scheduled for 5 and 6 November 2024, follows a mandate given to the committee on 6 June 2024 to investigate Ministries, Departments, and Agencies involved in renewable energy investments, grants, and procurement.

This probe, covering activities from 2015 to 2024, aims to assess whether the investments align with Nigeria’s renewable energy goals.

In a statement issued on Sunday, Committee Chairman Victor Ogene expressed concern over the lack of visible results despite Nigeria’s success in attracting renewable energy investments.

“Despite the government attracting over $2bn in renewable energy investments in the past decade, as reported by the Rural Electrification Agency in 2023, there has been no noticeable improvement in the sector,” Ogene said.

Ogene explained that the probe is intended to enhance transparency.

He noted, “This is not a witch-hunt but an exercise to discourage shady dealings and promote transparency and objectivity in managing government or public resources.”

The House’s inquiry comes after President Bola Tinubu highlighted Nigeria’s renewable energy progress during the Africa Natural Resource and Energy Investment Summit, where he noted, “Over the past decade, Nigeria has attracted over $2bn in investment in the renewable energy sector, making it a fast-growing part of the economy.”

Tinubu emphasised the importance of local production of solar panels and batteries to reduce costs and increase access to electricity.

The committee aims to address concerns raised by Oshodi-Isolo II Federal Constituency lawmaker Mr Okey-Joe Onuakalusi, who stated that poor electricity generation, transmission, and distribution continue to hinder Nigeria’s industrial and technological growth despite substantial foreign grants and investments.

Notably, in December 2023, the World Bank approved a $750 million fund to boost renewable energy in Nigeria, targeting 17.5 million people with better electricity access.

Another key initiative, the $200 million Nigeria Electrification Project, launched in 2020 and funded by the African Development Bank, aims to provide off-grid energy to over 500,000 people in rural communities.

Among the agencies and organisations summoned to the hearing are the Rural Electrification Agency, Nigerian National Petroleum Company Limited, Nigerian Content Development and Monitoring Board, Ministry of Petroleum Resources, and Federal Ministry of Power.

The committee also invited representatives from the European Union, United States Agency for International Development, and multiple other federal ministries and financial bodies.