FG, Chinese firm sign MoU on electric tricycles and renewable energy
On Tuesday, the Federal Government entered into a Memorandum of Understanding (MoU) with Mutual Commitment Company Limited, a Chinese firm, to initiate the assembly of electric tricycles and set up a renewable energy training center.
The signing ceremony, organized by the Rural Electrification Agency (REA), was attended by Minister of Power Adebayo Adelabu and REA Managing Director Abba Aliyu. The event took place in Beijing just before the African-China Cooperation Summit commenced.
In a statement issued by Adelabu’s spokesperson, Bolaji Tunji, it was revealed that the MoU signing was a significant milestone for Nigeria. Adelabu remarked on the importance of the event, describing it as a landmark achievement for the nation.
Adelabu congratulated both the REA and the National Power Training Institute of Nigeria, emphasizing that this agreement will contribute to Nigeria’s goals in the renewable energy sector. He noted the parallels between Nigeria and China, both large and densely populated countries facing similar challenges in energy access and job creation. Adelabu expressed his satisfaction that this initiative is taking place under President Bola Tinubu’s administration, aligning with the Renewed Hope Agenda.
The Minister underscored President Tinubu’s commitment to the power sector, which he sees as crucial for the overall economic development. He acknowledged the long-standing reliance on a centralized power model and highlighted the need for a shift towards a distributed energy model to better serve rural areas, educational institutions, and healthcare facilities.
Adelabu pointed out that nearly 40 percent of Nigerians lack reliable energy access, stressing that moving away from centralized power systems will help address this issue. He highlighted that the distributed energy model, which is scalable and can operate independently of the national grid, is vital for expanding energy access and transitioning to cleaner, sustainable energy sources.
The MoU aims to generate employment opportunities for Nigeria’s growing youth population and support local job creation. Adelabu noted that while some African nations have achieved near-total electrification, Nigeria still lags at 62 percent. He emphasized that with the country’s rich natural resources—such as gas, hydropower potential, wind, and solar energy—Nigeria has the capability to significantly improve its electrification rate.
The REA Managing Director, Abba Aliyu, highlighted the importance of the MoU in fulfilling the presidential mandate to build local capacity and create job opportunities. He pledged to monitor the initiative’s progress and its impact on the economy, including GDP growth and employment.
Mutual Commitment Company Limited is currently involved in constructing power plants in Maiduguri and Kaduna. Yan Zhezhu, the company’s Vice Chairman, expressed gratitude for the Minister’s dedication to advancing Nigeria’s energy sector.
