By Ndudirim Sylvia Iloka
The Federal Government has unveiled a new initiative aimed at transforming Nigeria’s agricultural sector through expanded access to electricity, with a strong focus on boosting food production, reducing post-harvest losses and stimulating economic activities in rural communities.
The initiative, known as the Productive Use of Energy (PUE), is designed to ensure that electricity supplied to rural areas goes beyond household consumption to power productive ventures such as irrigation, food processing, cold storage, agro-processing and other income-generating activities capable of improving farmers’ livelihoods.
Speaking at the Stakeholders’ Engagement Workshop on the Productive Use of Energy held in Abuja on Thursday, July 16, 2026, the Minister of Power, Chief Adebayo Joseph Tegbe, said Nigeria’s drive towards universal electricity access must be deliberately aligned with economic empowerment and sustainable development.
The minister observed that while extending electricity to underserved communities remains a priority, the true value of energy lies in its ability to stimulate businesses, increase agricultural productivity and create employment opportunities across rural Nigeria.
According to him, reliable electricity has the potential to significantly improve farming activities by powering irrigation systems, reducing dependence on expensive diesel generators, supporting food processing and preserving agricultural produce through efficient cold storage facilities.
Tegbe further stated that the Productive Use of Energy initiative represents a strategic convergence of the nation’s power, agriculture and industrialisation agendas. He noted that inadequate processing facilities, poor storage infrastructure and high operating costs have continued to undermine agricultural productivity and contribute to substantial post-harvest losses across the country.
He stressed that the initiative would unlock fresh opportunities for farmers seeking to reduce production costs, manufacturers aiming to expand their markets, financial institutions looking to support viable investments and government agencies pursuing inclusive rural development and economic growth.
The minister maintained that expanding productive energy access would not only strengthen agricultural value chains but also encourage local enterprise development, create jobs, improve household incomes and contribute meaningfully to national food security.
The workshop brought together stakeholders from the Federal Ministry of Power, the Ministry of Agriculture and Food Security, the Rural Electrification Agency (REA), development partners, financial institutions, manufacturers, farmers’ associations and members of the diplomatic community to develop a coordinated framework for accelerating productive energy deployment across the agricultural sector.
In his remarks, the Managing Director and Chief Executive Officer of the Rural Electrification Agency, Abba Abubakar Aliyu, explained that the engagement was intended to establish a sustainable framework capable of delivering long-term impact rather than short-lived interventions.
Aliyu noted that smallholder farmers and Micro, Small and Medium Enterprises (MSMEs) remain the backbone of Nigeria’s food production system, making it imperative to provide them with affordable and reliable clean energy solutions that can improve productivity and profitability.
He disclosed that under the agency’s Energizing Agriculture Programme, more than 120 viable agricultural project sites have already been identified across the country for possible implementation.
The REA boss further revealed that the Distributed Access through Renewable Energy Scale-up (DARES) programme has set aside 250 million dollars for standalone solar systems, 100 million dollars for solar business development and an additional 50 million dollars to support productive-use equipment that will enhance agricultural and rural enterprises.
Also speaking, officials of the Federal Ministry of Agriculture and Food Security pledged the ministry’s commitment to collaborating with relevant stakeholders to ensure the successful implementation of the initiative, while representatives of the ECOWAS Commission reaffirmed the regional body’s support for programmes that utilise energy as a catalyst for agricultural transformation and economic development across West Africa.
Participants at the workshop expressed optimism that the engagement would pave the way for stronger public-private partnerships, increased investments, innovative financing models and wider deployment of productive energy technologies capable of improving agricultural output, creating employment opportunities and raising incomes in rural communities.
The Abuja engagement marks the first in a series of consultations expected to shape national policies on productive energy use, with subsequent sessions focusing on financing mechanisms, technology standards, implementation strategies and large-scale deployment of energy solutions to support Nigeria’s agricultural transformation agenda.
