…State signs landmark MoU to unlock $1.6bn clean energy fund, targets 25 rural communities in first phase
By HeapNews
The Ondo State Government and the Federal Rural Electrification Agency (REA) have formalised a groundbreaking partnership to extend reliable electricity to underserved and off-grid communities across the state.
At a roundtable held in Abuja on Tuesday, July 22, 2025, themed “From Access to Impact: Unlocking Ondo’s Renewable Energy Potential for Economic Transformation and Socioeconomic Inclusion”, both parties signed a Memorandum of Understanding (MoU) to launch clean energy interventions that will power economic growth and inclusive development.
Speaking at the event, Ondo State Governor, Dr. Lucky Orimisan Aiyedatiwa, described the agreement as a significant step forward for the state’s energy future.
“Today’s programme is not only about discussions,” Aiyedatiwa said, “it marks a significant milestone, the formal signing of a Memorandum of Understanding between the Government of Ondo State and the Federal REA, ushering in a new era of deep collaboration to advance sustainable electrification and localised energy solutions.”
The governor emphasized Ondo’s growing appeal to renewable energy developers due to its clear regulatory frameworks and investor-friendly policies.
“We offer fast-track permitting processes and targeted fiscal incentives that de-risk investments and accelerate project delivery. Developers have found Ondo State to be a dependable partner in the quest to light up rural and underserved communities. And we are committed to doing more.”
He also highlighted the creation of a State-level Rural Electrification Agency, backed by law, to ensure Ondo can directly align with national electrification frameworks like the National Electrification Strategy and Implementation Plan (NESIP).
Aiyedatiwa added that the state’s Electricity Roadmap is designed to transform its economic landscape by powering agro-processing hubs, healthcare facilities, schools, and SMEs, particularly in riverine and remote areas like Ilaje, Owo, Idanre, Bolorunduro, and Akoko.
“This partnership signals a commitment to ensuring that access to electricity becomes a launchpad for jobs, innovation, equity and sustainable prosperity,” he said.
On his part, the Managing Director of the REA, Abba Aliyu, announced that the agency has a funding pipeline of nearly $1.6 billion, mobilised through public-private partnerships and international climate finance, to deploy solar mini-grids, standalone systems, and clean energy technologies nationwide.
“We have designed a program to energise 25 communities in Ondo State alone,” Aliyu said. “We have the funding and we are ready to partner with the state to drive renewable energy projects.”
Aliyu praised Ondo’s strong policy environment, noting the state scored 4 out of 5 in REA’s assessment of readiness for clean energy deployment.
Ondo State Commissioner for Energy and Mineral Resources, Engr. Alabi Johnson, reiterated the urgency of addressing energy poverty in rural and peri-urban areas.
“In Ondo State, we recognize that energy is more than just power supply, it is the engine that drives productivity, unlocks innovation, creates jobs, and uplifts communities from poverty to prosperity,” Johnson said.
“This roundtable is a strategic platform to share insights, deepen partnerships, and build a roadmap that ensures no one is left behind in our journey toward energy equity.”