….propose 40% of rural electrification fund
Under the proposed amendment, 40 per cent of the annual funds of the Rural Electrification Fund would be allocated to NARE to support renewable energy development.
By Deborah Hassan
365Daily – A bill seeking to establish a National Authority for Renewable Energy (NARE), with a proposal to allocate 40 per cent of the annual Rural Electrification Fund to the new agency to finance renewable energy development across Nigeria has scaled second reading in the House of Representatives.
Titled Electricity Act (Amendment) Bill, 2025, it was sponsored by the Chairman of the House Committee on Renewable Energy, Hon. Afam Victor Ogene, representing Ogbaru Federal Constituency.
The proposed authority is expected to become the principal institution responsible for regulating and promoting renewable energy, taking over related functions currently handled by the Nigerian Electricity Regulatory Commission (NERC), the Rural Electrification Agency (REA) and the Rural Electrification Fund (REF).
Leading the debate on the bill, Ogene said the proposed institutional arrangement would improve coordination in the renewable energy sector, accelerate rural electrification and attract investment into local manufacturing.
He said the establishment of NARE would strengthen the deployment of mini-grids and off-grid electricity systems, particularly in communities that remain underserved by the national electricity grid.
“We must embrace decentralised and renewable energy solutions to reach communities faster,” Ogene told the House.
Under the proposed amendment, 40 per cent of the annual funds of the Rural Electrification Fund would be allocated to NARE to support renewable energy development.
The bill also provides for collaboration between the proposed authority and existing agencies to harmonise policies and ensure effective implementation of renewable energy programmes.
Ogene argued that a coordinated approach would help expand access to electricity while creating opportunities for local manufacturing and employment in the renewable energy sector.
Following the debate, the House referred the bill to the relevant committee for further legislative scrutiny.