Nigeria’s push to bridge the energy access gap in underserved communities has entered a transformative phase, thanks to renewed strategies, innovative financing models, and a clear-eyed vision from the Rural Electrification Agency (REA).
In an exclusive interview with BusinessDay, Abba Aliyu, managing director of the REA, outlined the agency’s recent achievements, persistent challenges, and ambitious roadmap for delivering sustainable energy to millions of Nigerians.
Under Aliyu’s leadership, the REA has become a linchpin in Nigeria’s national development strategy, championing off-grid and renewable energy solutions to address the limitations of the national grid and drive inclusive growth.
Powering communities one step at a time
Despite the REA’s expanding footprint, several rural communities still remain in darkness. According to Aliyu, the challenge is not intent, but resources.
“Electrification anywhere is capital-intensive,” he stated. “Funding remains a key bottleneck.”
However, he noted that the agency employs a data-driven approach, using geospatial mapping and socio-economic analysis to prioritise communities with high productive-use potential, where electricity can fuel commerce, agriculture, and local industry.
The National Electrification Strategy and Implementation Plan (NESIP), spearheaded by the Federal Ministry of Power, serves as the compass for national and subnational alignment, aimed at universal access to energy.
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Tackling insecurity
Security concerns, especially in parts of northern Nigeria, have historically disrupted project execution.
However, the REA’s community-centric model is proving effective.
“We haven’t received significant security-related disruptions recently,” Aliyu disclosed.
Through structures like the Rural Electricity Users Cooperative Society (REUCS), local communities are now custodians of their infrastructure. Collaborations with state governments and youth groups further cement social safeguards and local ownership.
Embracing digital innovation
The REA is embracing the global shift toward smart energy solutions. Aliyu revealed that the agency is integrating Internet of Things (IoT) technology for remote monitoring of energy assets, fault detection, and electricity consumption analytics.
“We are refining our data management system to enhance decision-making,” he said. Initiatives such as IoT-enabled mini-grids and PayGo (pay-as-you-go) payment platforms are already enhancing transparency, user satisfaction, and long-term sustainability.
Energising Education
flagship initiative of the REA, the Energising Education Programme (EEP), is powering federal universities and teaching hospitals with solar hybrid systems.
“These institutions spend hundreds of millions of naira annually on diesel, with insufficient power to show for it,” said Aliyu.
So far, seven universities and two teaching hospitals have benefited under Phase II of the programme, with funding from the World Bank. Phase III, funded by the African Development Bank, is underway, while Phase IV—supported by the Renewed Hope Infrastructure Development Fund—is preparing to onboard another eight institutions.
Read also: REA: From rural electrification agency to renewable energy agency
Leveraging the Electricity Act of 2023
Aliyu described the Electricity Act of 2023 as a “game-changer.”
The Act decentralises the power sector, allowing states to create bespoke electrification plans and attract local investments.
Section 127 specifically tasks the REA with electrifying underserved areas, promoting renewables, and fostering public awareness.
“We are actively holding strategic roundtables with state governments to unlock opportunities,” Aliyu explained.
Impact of the Nigerian Electrification Project
The $550 million Nigerian Electrification Project (NEP), funded by the World Bank, has delivered over 160 mini-grids and 1.2 million solar home systems, reaching more than 9 million Nigerians.
According to Aliyu, the REA’s rigorous project management unit ensures all funds are disbursed under a results-based financing model with independent audits. “Transparency is not negotiable,” he emphasised.
The success of NEP has paved the way for the Distributed Access through Renewable Energy Scale-up (DARES) programme, another World Bank-backed initiative with a $750 million facility, making it the largest publicly funded clean energy programme in the country.
Private sector partnerships
Aliyu envisions Nigeria as the renewable energy hub of Africa.
“We are supporting local manufacturing of solar panels and lithium-ion batteries,” he said, citing partnerships with NASENI, Oando Clean Energy, and Green Vault. A $150 million lithium battery plant and a 1.2GW PV panel assembly plant are among the major investments in the pipeline.
To build a skilled workforce, the REA has launched training initiatives like the Female STEM Internship and the NEXT GEN RESCOs Leadership Programme, which aims to train 120 future leaders in renewable energy.
Read also: Nigeria, Netherlands partner to advance solar energy, rural electrification
Responding to critics of Off-Grid solutions
To critics who question the reliability of mini-grids and solar systems, Aliyu offers a clear rebuttal: “These systems have transformed entire communities, markets, hospitals, and schools.”
He argues that distributed energy solutions are not alternatives but necessities, designed to complement a national grid that cannot alone serve Nigeria’s population of over 200 million.
The REA is also scaling up interconnected mini-grids that blend solar and grid power. With 42 such projects underway, the agency aims to add up to 100MW of reliable, clean energy to the national supply.
