- REA plans to develop Renewable Energy Service Companies that will provide utility-scale renewable electricity and compete with distribution companies over the next 10 to 15 years.
- The agency says interconnected mini-grids, cost-reflective tariffs and stronger private sector participation will accelerate universal electricity access.
The Rural Electrification Agency (REA) has unveiled plans to establish Renewable Energy Service Companies (RESCOs) that will provide utility-scale renewable electricity services and compete with conventional electricity distribution companies (DisCos) over the next 10 to 15 years.
Managing Director of the REA, Abba Abubakar Aliyu, announced the initiative during the Oriental News 2026 Conference in Ikeja, Lagos. Executive Director of Corporate Services, Gboyega Ayoade, represented him at the event.
Aliyu said the agency is shifting its strategy from supporting isolated mini-grid projects to encouraging developers to build interconnected, utility-scale renewable energy networks capable of supplying entire communities.
Under the new model, RESCOs will deploy between 20 and 50 interconnected mini-grids powered by solar energy and battery storage, enabling consumers to receive reliable, round-the-clock electricity independent of the national grid.
He said the new approach will give electricity consumers greater choice by allowing them to receive clean energy directly from renewable energy providers instead of relying solely on conventional distribution companies.
Aliyu argued that Nigeria cannot depend entirely on DisCos to achieve universal electricity access because many operators do not supply communities where electricity distribution is not commercially viable.
He explained that the REA is already facilitating agreements between mini-grid developers and DisCos in areas where the latter provide limited or no electricity service. Through the Distributed Access through Renewable Energy Scale-up (DARES) programme, developers are expanding interconnected mini-grids into underserved communities with the consent of existing distribution companies.
According to him, RESCOs will also construct their own electricity infrastructure, including distribution and transmission networks, in areas without existing services, subject to regulatory approval from the Nigerian Electricity Regulatory Commission (NERC), which will grant exclusive operating rights where appropriate.
Aliyu also stressed that Nigeria must embrace cost-reflective electricity tariffs to achieve sustainable and reliable power supply. He said the government can no longer sustain electricity subsidies and argued that consumers must recognise electricity as a commercial service that requires adequate payment.
Furthermore, he pointed to improvements in electricity supply under the Band A tariff framework, noting that customers paying cost-reflective tariffs now receive between 18 and 24 hours of electricity daily. He added that similar service improvements can gradually extend to customers in other tariff bands.
Addressing concerns about renewable energy technologies, Aliyu said the REA subjects all solar panels, batteries and related equipment used in its projects to rigorous technical assessments before deployment. He added that the Standards Organisation of Nigeria continues to inspect imported solar panels to ensure compliance with national quality standards.
He also disclosed that the agency is developing battery recycling and disposal systems to manage end-of-life lithium batteries safely and support the long-term sustainability of Nigeria’s growing renewable energy sector.
Speaking at the conference, Publisher of Oriental News Nigeria Online, Yemisi Izuora, emphasised the need to balance natural resource development with environmental protection, noting that sustainable environmental management remains critical to Nigeria’s long-term economic development.