Ondo, REA Seal $1.6bn Renewable Energy Deal to Power 25 Underserved Communities
By Exponent News, Akure
July 23, 2025
In a bold step toward bridging the energy gap and accelerating grassroots development, the Ondo State Government has signed a landmark Memorandum of Understanding (MoU) with the Rural Electrification Agency (REA) to deliver sustainable electricity to at least 25 underserved communities across the state.
The agreement, signed during a high-level roundtable in Abuja on Tuesday, is part of a broader collaboration themed “From Access to Impact: Unlocking Ondo’s Renewable Energy Potential for Economic Transformation and Socioeconomic Inclusion.”
Governor Lucky Orimisan Aiyedatiwa, who led the state delegation, described the partnership as a “new era of deep collaboration” that aligns with his administration’s roadmap for inclusive growth, energy access, and rural development.
“This is not just about infrastructure—it’s about jobs, innovation, and empowering our communities. With this MoU, Ondo is positioning itself as a national leader in renewable energy deployment,” the Governor said.
Governor Aiyedatiwa noted that Ondo has already established a State Rural Electrification Agency to act as a sub-national counterpart to the federal REA, ensuring faster, locally tailored solutions. He said the state offers attractive incentives to investors, including streamlined permitting, regulatory clarity, and fiscal benefits for renewable energy developers.
He highlighted priority areas such as Ilaje, Bolorunduro, Idanre, Owo, and Akoko, where electricity will be used to boost agro-processing, healthcare, digital infrastructure, and education.
On the federal side, REA Managing Director, Abba Aliyu, disclosed that the agency has access to nearly $1.6 billion in funding from public-private partnerships, multilateral institutions, and climate finance sources to accelerate clean energy infrastructure across Nigeria.
“We’ve developed programs to energize 25 communities in Ondo alone, and we are ready to deploy,” Aliyu stated. “Ondo has demonstrated a strong readiness for renewable energy expansion, scoring 4 out of 5 in our policy capacity rating.”
Ondo State Commissioner for Energy and Mineral Resources, Engr. Alabi Johnson, said the deal would help eliminate energy poverty and unlock the economic potential of rural areas.
“Energy is not just power—it’s the engine of productivity and community transformation. This initiative ensures no one is left behind,” Johnson said.
The engagement is seen as a strategic move by the Aiyedatiwa-led administration to make Ondo a renewable energy hub, with a focus on sustainability, local content, and equitable development.
