ADDRESS BY THE HONOURABLE MINISTER OF POWER AND STEEL, SENATOR LIYEL IMOKE AT THE INAUGURATION OF THE BOARD OF THE RURAL ELECTRIFICATION AGENCY (REA) ON THURSDAY 16 TH MARCH 2006 AT NICON HILTON HOTEL ABUJA

Distinguished Senators and Hon. Members of the National Assembly here present
The Honourable Minister of State for P&S
The Permanent Secretary (FMP&S)
Directors of the Ministry
The in-coming Chairman and Members of the Board of the Rural Electrification Agency
Gentlemen of the Press
Distinguished invited Guests
Ladies and Gentlemen

It is my delight to welcome you all today to the inauguration of the Board of the Rural Electrification Agency. This inauguration marks yet another milestone in the implementation of the Power Reforms Policy of the Obasanjo Administration, the vision of which is to provide access to electricity for all Nigerians.

I wish to start by thanking Mr. President for giving his approval for the establishment of the Rural Electrification Agency and for the constitution of its Board. This is a history making event and I sincerely congratulate the Chairman and Members of the Board and the top Management of the Agency on your appointment as pioneer executors of this vision of Mr. President.

The Rural Electrification Programme of Federal Government started in the 1970s and was known as "Country Rural Electrification." The programme was later to be called "Electrification of Local Government Headquarters". In 1988, the file changed to 'National Rural Electrification Programme' (NREP). The main aim of NREP was to connecting all Local Government Headquarters (LGHQs) and some strategic and important towns to the national grid, and thus to provide an artery of power supply to other nearby towns and villages. Most State Governments through their Rural Electrification Boards (REBs) have explored the opportunities of the NREP to connect nearby villages in their domain to the national grid, while some operated an off-grid system through diesel power generation.

The Government of the by the new policy is encouraging further collaboration through private sector participation direct for an investment, and the exportation of renewable sources for power generation.

•  In the eleven years between 1988 and 1999, 340 projects were completed under the NREP. In comparison, a total of 737 projects have been completed since the return to democracy under President Olusegun Obasanjo that is six year period covering May 1999 to December 2005. In spite of this laudable achievement, there is still much that is left to be done. For instance 57 of the present 774 Local Government Headquarters in the country are yet to be connected to the national grid. Also only about 40% of the country's population has access to electricity supply. Hence the need for a new vision to improve access to electricity, most especially by rural dwellers.

In pursuit of this vision, Mr. President, in March, 2005 signed into law, the Electric Power Sector Reform Act (EPSRA) which brought into life the establishment of the Nigeria Electricity Regulatory Commission (NERC) and the Rural Electrification Agency (REA). As you are all aware NERC has since been established and functioning with its board inaugurated earlier in the year. Todays event seals the package of institutional framework for the implementation of the vision. The rural electrification agencies will function in three dimensions. It will implement the rural electrification fund, regulate RE functions which are not covered by NERC activities: and promote rural electrification.

The primary objective of the Rural Electrification is to expand access to electricity in rural and semi-urban areas to facilitate and hasten the economic development of these areas and improve standard of living.

Ladies and Gentlemen, it is needful for the Chairman, Board members and Management of REA to understand where the Rural Electrification (RE) in Nigeria stands today and appreciate the challenges that are ahead. The REA is, as it were, a major instrument for the achievement of the Millennium Development Goal of poverty reduction and catalyst for the reactivation of the other MDGs. Indeed your role in the development implementation of our nation's poverty reduction initiatives as expanded in the NEEDS document are crucial and should be approached with all diligence and patriotism. Nigerians are waiting upon you.

May I at this point urge you (the Board and Management of REA) to familiarize yourself with National Electricity Reforms and apply extant rules and the provisions of relevant enabling laws in the conduct of your activities and to also make the best use of the guidance and advice from the Ministry and other stakeholders, most especially NERC. I assure you of the Ministry's readiness to give the necessary support required for you to succeed in your assignment.

Mr. Chairman, Members of the Board and Management of REA, I congratulate you once more. I have no doubt in my mind that Mr. President has chosen a competent team and one that shares his vision. I therefore urge this dream team to justify the confidence Mr. President has reposed in them.

Finally, by the powers conferred on me by Mr. President, I hereby inaugurate the Board of the Rural Electrification Agency to the glory of God and the benefit of the good people of Nigeria .

God bless Nigeria !