The Federal Government has reaffirmed its commitment to using electricity as a catalyst for agricultural productivity and rural economic growth, declaring that rural electrification must go beyond providing power to creating jobs, boosting enterprise and improving livelihoods.
Minister of Power, Chief Joseph Tegbe, made the declaration on Thursday in Abuja at the Stakeholders' Engagement Workshop on the Productive Use of Energy (PUE), where government agencies, the Rural Electrification Agency (REA), the ECOWAS Commission, development partners, financiers, manufacturers and farmers met to develop a coordinated framework for expanding energy access to Nigeria's agricultural sector.
Tegbe said electricity becomes truly transformative only when it powers productive activities such as irrigation, agro-processing, cold storage and other value-adding enterprises.
He stressed that the Productive Use of Energy initiative brings together the objectives of the power, agriculture and industrial sectors while advancing financial inclusion, food security and job creation.
According to the minister, significant value continues to be lost between harvest and market due to inadequate cold storage facilities, limited processing capacity and the high cost of energy-intensive equipment.
He noted that expanding access to productive energy offers clear benefits across the agricultural value chain, including lower operating costs for farmers, new investment opportunities for financial institutions, a larger domestic market for manufacturers and stronger economic returns for government.
Tegbe urged stakeholders to strengthen collaboration and position Nigeria as a leader in Africa's productive-use-of-energy market.
Managing Director and Chief Executive Officer of the Rural Electrification Agency (REA), Abba Abubakar Aliyu, described the engagement as the beginning of a long-term strategy to build a sustainable ecosystem that supports smallholder farmers and micro, small and medium enterprises.
Aliyu highlighted the agency's achievements, including more than 120 bankable project sites under the Energizing Agriculture Programme. He also disclosed that the Distributed Access through Renewable Energy Scale-up (DARES) programme has committed 250 million dollars to standalone solar systems, 100 million dollars to solar-as-a-business initiatives and 50 million dollars for productive-use equipment.
The Federal Ministry of Agriculture and Food Security, represented at the event, pledged support for the initiative, while the ECOWAS Commission reaffirmed its commitment to promoting energy-driven agricultural transformation across West Africa.
The workshop, the first in a series of planned engagements, will be followed by consultations focusing on financing models, technology standards and deployment strategies for productive-use equipment.
Stakeholders expressed optimism that the collaboration between government, development partners and the private sector would attract greater investment, accelerate innovation and improve incomes for rural communities across Nigeria.