Establishment and Corporate Status

• Creation: The REA is established to handle rural electrification projects.
• Corporate Body:
• Perpetual succession and a common seal.
• Can sue or be sued.
• Can deal with both movable and immovable property.

Objectives

1. Market Entry and Coordination: Create channels for entry into rural electrification markets, coordinating with corporate bodies to supply services and facilities.
2. Efficient Service Provision: Ensure that electrification services in rural areas are efficient, economical, and meet performance standards for social, industrial, and agricultural needs.
3. Policy Implementation: Promote and implement government policies on rural electrification.
4. Electricity Access: Enhance access to electricity for rural, unserved, and underserved populations.
5. Off-Grid Electrification: Promote off-grid solutions to reach areas not connected to the main grid.
6. Renewable Energy Framework: Support the development and utilization of renewable energy sources to attract investment and diversify energy supplies.
7. Special Programs: Implement special electrification programs and projects approved by the Federal Ministry responsible for power.

Functions

1. Universal Access Promotion: Drive the provision of affordable and sustainable electricity to improve the quality of life and economic opportunities in rural areas.
2. Reliable Power Supply: Ensure access to reliable electricity that supports reasonable returns on investment through economically responsive tariffs.
3. Fund Management: Oversee and execute the Rural Electrification Fund in accordance with operational guidelines.
4. Renewable Energy Development: Promote the use of renewable energy sources, collaborating with federal ministries, departments, and State Boards.
5. Educational Opportunities: Provide learning opportunities about rural electrification business ventures.
6. Low-Cost Project Promotion: Advocate for low-cost electrification projects that qualify for subsidy grants.
7. Tax and Investment Incentives: Facilitate tax incentives, investment allowances, and low-interest loans for local renewable energy product producers.
8. Economic Growth: Encourage economic growth in rural communities through electrification projects.
9. Ancillary Functions: Perform necessary ancillary functions to achieve its objectives.

Powers

1. Insurance: Insure its property against loss or risks.
2. Property Transactions: Acquire, purchase, hold, construct, maintain, and dispose of property required for its functions.
3. Zonal Offices: Establish zonal and liaison offices to facilitate its operations.
4. Gender Mainstreaming: Integrate gender considerations into rural electrification activities.
5. Fund Management: Manage funds from the Rural Electrification Fund for approved projects.
6. Data and Information Management: Collect, collate, process, and disseminate rural electrification data.
7. Additional Actions: Perform any other necessary actions to fulfill its functions under this Act.

Consultation and Stakeholder Engagement

• Consultation: The Agency consults with groups or individuals likely to be affected by its projects or programs, including investors, renewable energy companies, user cooperatives, State Rural Electrification Boards, and other stakeholders.

The following ensure effective governance, transparency, and efficient management within the REA, supporting its mission to enhance rural electrification.

Governing Board of the Rural Electrification Agency (REA)

Establishment and Composition

• Formation: The REA has a Governing Board ("the Board") to exercise its powers and perform its functions.
• Membership:
• Seven Members:
  • Six members represent the six geopolitical zones of Nigeria.
  • One designated as part-time Chairman.
  • Two as Non-Executive Directors.
  • Three as Executive Directors.
• Managing Director and CEO.

Qualifications and Appointments

• Board Members: Appointed by the President on the Minister’s recommendation.
• Qualifications:
• Managing Director and Executive Directors: Must have relevant qualifications, experience, and competence.
• Part-time Chairman and Non-Executive Directors: Highly respected with distinguished careers in public service and the private sector.

Terms of Office

• Term Duration: Five years, renewable for one additional term of five years.
• Termination: Members cease to hold office if they:
• Become bankrupt.
• Are convicted of a felony or offense involving dishonesty/fraud.
• Become of unsound mind or incapable of duty.
• Commit serious misconduct.
• Are disqualified or suspended from practicing their profession.
• Resign by letter to the President.

Remuneration

• Emoluments and Allowances: Paid as directed by the Federal Government through the National Salaries and Wages Commission.

Functions and Powers of the Board

• Guidelines and Supervision:
• Formulate guidelines for the Agency’s functions.
• Supervise the Agency’s management and internal policies.
• Fund Management:
• Ensure accountability of the Rural Electrification Fund (REF).
• Approve criteria for disbursement and the disbursement itself.
• Policy and Project Approval:
• Approve policies and procedures for fund allocation.
• Approve establishment or reorganization of Agency units.
• Reporting:
• Submit annual reports and audited accounts to the Minister.

Secretary to the Board

• Appointment: Recommended by the Managing Director, not considered a Board member.
• Responsibilities:
  • Convening meetings.
  • Recording and maintaining minutes.
  • Managing title documents and agreements.
  • Arranging payment of fees and allowances.
  • Communicating Board decisions.

Managing Director

• Appointment: By the President on Minister’s recommendation.
• Responsibilities:
• Chief executive and accounting officer.
• Administering the Agency under Board oversight.
• Five-year term, renewable once.
• Must have senior management experience in the power sector.

Employment and Staff Management

• Staff Employment:
• Agency can employ necessary staff.
• Determine job descriptions, terms, and salaries.
• Pension Benefits:
• Service is deemed approved under the Pensions Reform Act.
• Employees entitled to pensions, gratuities, and retirement benefits.