- Federal Government of Nigeria and China’s Mutual Commitment Company Limited signed an MoU to collaborate on electric tricycle assembly and renewable energy training
- The agreement aims to support Nigeria’s energy access expansion and job creation, aligning with President Bola Tinubu’s Renewed Hope Agenda
- Mutual Commitment Company Limited is already involved in building power plants in Nigeria, including a 12-megawatt facility in Maiduguri and a 3-megawatt plant in Kaduna according to report
The Federal Government and Mutual Commitment Company Limited, a company from China, have signed a Memorandum of Understanding (MoU) on electric tricycle assembly and the creation of a renewable energy training facility.
The MoU signing ceremony, arranged by the Rural Electrification Agency (REA), occurred in Beijing on Tuesday, September 3. This event took place just before the African-China Co-operation Summit, with Minister of Power Adebayo Adelabu and REA Managing Director Mr. Abba Aliyu in attendance.
Bolaji Tunji, who spoke for Adebayo Adelabu remarked that the MoU signing was significant and would be remembered as a landmark day for Nigeria.
Minister expresses satisfaction, says MoU aligns with Tinubu's agenda
He praised the REA and the National Power Training Institute of Nigeria for their roles in the event, highlighting that it will support Nigeria’s goals for the renewable energy segment of the electricity sector.
Adelabu added, “I know Nigeria and China have a lot of things in common, one of which is the fact that Nigeria and China are both high-population countries and with a country with high population, you have so much pressure.
“The first pressure is that of energy access, and the second is job creation. So when you take steps to achieve both, it is a thing of joy. I am particularly happy that this is happening during the tenure of President Bola Tinubu, as it is in line with achieving the Renewed Hope Agenda of the administration for the country.”
Adelabu criticises longstanding reliance on centralised power systems
The minister reiterated that Tinubu sees the power sector as a fundamental driver for all other important sectors of the economy and is offering extensive support to ensure it meets his electoral pledges.
He pointed out that the government's primary concern is enhancing energy access, as a resilient, stable, and efficient electricity sector is crucial for any significant achievements.
“We have relied so much on centralisation of our power sector for so long that it is not taking us anywhere,” he stated.
Adelabu disclosed that nearly 40 per cent of Nigeria’s population lacks access to energy, leading to significant consequences.
“So, moving away from centralisation, we have decided to adopt the distributed power model to ensure that every Nigerian has access to energy. A lot of our population resides in rural areas, and a lot of our educational and tertiary health institutions are isolated, and they are still facing epileptic power supply.
Initiative will create job opportunities, strengthen renewable energy - Adelabu
“We have also found out that the adoption of the distributed energy model will expand the energy net for our rural dwellers, the rural businesses, our universities and tertiary health institutions; which is why the focus is on renewable energy which we believe is scalable and can exist in isolation of national grid that is currently facing lots of pressure,” he explained.
He explained that alongside expanding energy access, Nigeria is committed to transitioning to energy sources that are both sustainable and eco-friendly.
He explained that the MoU will play a key role in realising the vision for the renewable energy sub-sector of the power industry.
“We will be able to produce jobs for our large youthful population that is growing every day. Our polytechnics, technical colleges, and universities are turning up graduates every year without assurance of job placement. This will go a long way to make it happen. At the same time, we will be able to achieve our energy access expansion,” he added.
Adelabu calls for immediate steps to improve Nigeria’s energy infrastructure
He pointed out that countries in North Africa, including Tunisia, Morocco, Egypt, and Algeria, have achieved full electrification, while South Africa has reached approximately 95 per cent.
“Unfortunately, Nigeria is still at 62 per cent, though there are still some African countries with worse levels of achievements, but this is not where we belong. If these countries can achieve this, why is it not possible for Nigeria with the level of our natural endowment? We have the gas, and the dams are also there for the hydropower electric. The wind, both desert and coastal, is there while sunshine is also effective. So, what are we waiting for?
“A step like today’s will enable us to move up on our level of electrification. This will consequently lead to growth in our Gross Domestic Product because of the economic activities that would be created. This will also save us foreign exchange expenditure on importation and create jobs for our people if we assemble these things locally,” he stated.
Yan Zhezhu applauds Nigeria’s energy progress
The Vice Chairman of the Mutual Commitment Company Limited, Yan Zhezhu, who spoke through an interpreter, expressed appreciation for the power minister’s commitment to Nigeria’s energy growth.
The Rural Electrification Agency boss noted that the MCC is currently working in Nigeria on building a 12-megawatt power plant in Maiduguri and a 3-megawatt facility in Kaduna.
He reiterated the importance of the ceremony, and said, “We will track this and ensure the delivery of the commitment within the tenure of the present administration. We will also track the economic factor that this initiative will drive, the level of GDP contribution, the employment opportunities provided, and the socio-economic activities that will crystallise.”
Toyota to launch hybrid electric vehicles in Nigeria
Meanwhile, TheRadar earlier reported that Toyota Nigeria Limited (TNL) announced plans to launch three hybrid electric vehicles in Nigeria in the next three years as part of its commitment to promoting sustainable transportation.
According to the report, Toyota planned to introduce the cross-hybrid model first, expected by the end of 2024. Subsequently, the RAV4 hybrid will be launched in 2025, with the Land Cruiser Prado hybrid expected in late 2025 or early 2026.