REA, FHFL sign five-year deal to power affordable housing projects

7 Sept 2026
By Firdaus Jibril

The Rural Electrification Agency (REA) and Family Homes Funds Limited (FHFL) have signed a five-year agreement to make energy planning and renewable power part of affordable housing projects from the design stage.

The agreement, signed on September 3, 2026, in Abuja, means energy requirements will now be considered alongside other infrastructure needs in FHFL-supported housing developments.

Under the Memorandum of Understanding (MoU), REA will provide energy data, electrification planning and technical support to help determine the most suitable power option for each project.

These could include grid connections, rooftop solar, mini-grids and hybrid systems.

FHFL, which supports the development of affordable housing across Nigeria, will share its project pipeline with REA at the feasibility stage and include energy infrastructure costs in project budgets and financing plans.

It will also require developers seeking FHFL financing to prepare energy-readiness plans for their projects.

REA Managing Director and Chief Executive Officer, Abba Abubakar Aliyu, said electricity should be treated as part of housing development rather than something added after construction.

“By combining FHFL’s housing delivery platform with REA’s energy planning expertise, data and technical capabilities, we can design communities that are not only affordable to acquire, but also more affordable and resilient to live in,” Aliyu said.

FHFL Managing Director, Abdul Mutallab Mukhtar, said integrating energy planning from the beginning would help deliver homes that are more energy-efficient and affordable to maintain.

The two agencies are also looking at using REA’s Energising Education Programme to provide power for FHFL’s planned university hostel development.

They will further explore collaboration under REA’s E-HEART programme and grid-extension projects.

The partnership will be overseen by a Joint Steering Committee and Technical Working Group, which will track projects, households reached, energy-cost reductions and environmental impact.

The agreement also provides for possible use of solar-powered water systems, community mini-grids, shared rooftop solar and infrastructure that can accommodate battery storage, electric vehicle charging and smart-grid systems.