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Lawmakers launch inquiry into $2bn renewable energy investment

The House of Representatives Committee on Renewable Energy has summoned stakeholders to an investigative hearing regarding the $2 billion in renewable energy grants and investments in Nigeria.

The Committee noted that this investment has not significantly addressed the country’s energy security issues.

In July 2024, President Bola Tinubu announced at the Africa Natural Resource and Energy Investment Summit in Nigeria that the country had secured over $2 billion in investments within the sector over the last ten years.

The investigative hearing is scheduled for Tuesday and Wednesday, November 5 and 6, 2024, following a mandate issued to the Committee on June 6, 2024, to examine the Ministries, Departments, and Agencies involved in investments, procurement, and grants related to the development of the renewable energy sector.

In a statement released on Sunday, November 3 2024 by the Committee Chairman, Victor Ogene, in Abuja, it was noted that the investigation will focus on the period from 2015 to 2024.

The lawmaker expressed astonishment that despite the government securing over $2 billion in renewable energy investments in the last decade, as reported by the Rural Electrification Agency in 2023, there has been no significant progress in the sector.

“The House of Representatives was alarmed that the dysfunctional electricity generation and supply system persists, contrary to the objectives behind government investments and grants aimed at developing the renewable energy sector. Hence, the resolution to probe these investments to determine the integrity of the procurement and execution processes.” Ogene stated

He emphasised that the investigation is not a witch-hunt but an initiative aimed at discouraging corrupt practices and promoting transparency and accountability in the management of government resources.

The House’s decision came after the adoption of a motion titled “Need to Investigate Investments in the Renewable Energy Sector and Foreign Grants Received from 2015 Till Date,” which was sponsored by Mr. Okey-Joe Onuakalusi, the lawmaker representing Oshodi-Isolo II Federal Constituency in Lagos State.

In the leading debate, the lawmakers highlighted that inadequate electricity generation, transmission, and distribution represent a serious threat to the nation’s industrial and technological development objectives.




     

     

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    The lawmakers stated that successive governments since 2015 have made significant investments and secured multimillion-dollar foreign grants for Nigeria’s renewable energy sector to establish a viable and sustainable alternative energy supply. They pointed out that in December 2023, the World Bank approved a $750 million facility aimed at enhancing renewable energy access in Nigeria, which is expected to benefit over 17.5 million Nigerians through distributed renewable energy solutions.

    Additionally, they noted that the federal government launched a $200 million initiative in 2020 called the ‘Nigeria Electrification Project,’ which is designed to provide off-grid energy to more than 500,000 people across 105,000 households in rural areas, funded by the African Development Bank.

    Agencies invited to participate in the public hearing include the Rural Electrification Agency, Nigerian National Petroleum Company Limited, and Nigerian Content Development and Monitoring Board, among others.

    Also on the list are representatives from the European Union, Union Bank Plc (Compliance Department), and various federal ministries related to power, science, and agriculture, as well as the United States Agency for International Development (USAID) and other relevant organisations.

    Fatimah Quadri is a Journalist and a Fact-checker at The ICIR. She has written news articles, fact-checks, explainers, and media literacy in an effort to combat information disorder.
    She can be reached at sunmibola_q on X or fquadri@icirnigeria.org

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