- REA MD Abba Aliyu plans to electrify 25 million Nigerians through sustainable and commercially viable frameworks within three years.
- $750 million in funding from the World Bank will support electrifying 17.5 million Nigerians via mini-grids, mesh grids, and home systems.
- The Rural Electrification Fund aims to electrify 2.5 million Nigerians, and discussions with the African Development Bank (AfDB) regarding additional funding are ongoing.
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, has revealed a plan to electrify 25 million Nigerians over the next three years. He aims to achieve this through sustainable, commercially viable models.
Speaking to Arise News on Monday, February 3, Aliyu emphasised the need for a strong commercial structure to ensure long-term success. He firmly stated that free electricity models cannot work. “Any framework that offers free electricity will fail,” he said. Aliyu explained that tariffs must reflect actual costs to sustain the system.
Aliyu prioritises providing electricity to unserved and underserved communities. He set a goal to electrify 25 million Nigerians swiftly and efficiently. To back this goal, he highlighted a $750 million funding arrangement secured by the Nigerian government.
“The World Bank has committed $750 million to help electrify 17.5 million Nigerians,” Aliyu said. He detailed the strategy, which includes reaching 30 million Nigerians with isolated mini-grids, 1.5 million with interconnected mini-grids, and 12 million through mesh grids and standalone home systems.
Aliyu also highlighted the Rural Electrification Fund (REF), which he says can electrify 2.5 million Nigerians. “We have the REF, which holds enough funding to bring electricity to 2.5 million Nigerians,” he added.
To expand the project, Aliyu noted ongoing discussions with the African Development Bank (AfDB) to secure additional funding to provide electricity to another five million Nigerians.
REA’s broader strategy aims to increase electricity access in rural areas. Aliyu stressed the importance of sustainability for the success of rural electrification. He argued that previous attempts failed because they provided free electricity without considering sustainability.
“Electricity provision must follow a commercial framework and reflect real costs,” Aliyu reiterated. He stressed that tariffs must cover the supply costs to keep operations running long-term. Without such a structure, projects collapse after initial funding runs out.
Aliyu’s approach marks a departure from previous rural electrification efforts. He focuses on building systems that can sustain themselves commercially. “We need models that will last and keep providing power for years to come,” he said.
In summary, Aliyu aims to electrify 25 million Nigerians using a combination of mini-grids, mesh grids, and home systems. With support from the World Bank and potential backing from the AfDB, REA seeks to extend electricity access to rural communities across Nigeria. The agency will focus on creating reliable and sustainable electricity systems that drive long-term development.