‘REA tapping data, smart tech to power underserved communities’ – Abba Aliyu

Nigeria’s quest for universal electricity access is gaining renewed urgency, and at the heart of this drive is the Rural Electrification Agency (REA), now leveraging smart technology, local partnerships, and innovative funding to close the power gap. In a candid interview, REA’s Managing Director Abba Aliyu shares how the agency is transforming rural energy delivery, from powering federal universities to installing mini-grids in remote communities, while navigating funding shortfalls, security risks, and policy shifts.

Aliyu offers a compelling look into REA’s data-driven strategies, the rising role of local manufacturing in Nigeria’s clean energy future, and the agency’s commitment to zero abandoned projects. As he details REA’s response to Nigeria’s new Electricity Act, the challenges of scaling solar, and the promise of blended finance, the interview paints a picture of an institution quietly leading one of the country’s most consequential development stories.

Nigeria’s rural electrification efforts have gained momentum in recent years, with the Rural Electrification Agency (REA) playing a central role in closing the country’s energy access gap. In this interview with BusinessDay’s Dipo Oladehinde, REA Managing Director Abba Aliyu outlines the agency’s progress, the challenges of electrifying off-grid communities, and the path toward a more sustainable and inclusive energy future. Excerpts:

Some rural communities still lack electricity despite REA’s efforts. What are the biggest bottlenecks, and how do you prioritise which communities are electrified first?

At the REA, our mission is to power Nigeria one community at a time. The Federal Government’s goal is that no Nigerian is left behind. The National Electrification Strategy and Implementation Plan (NESIP), led by the Ministry of Power, provides a unified framework to coordinate national and sub-national efforts and accelerate universal energy access.

Electrification is capital-intensive anywhere in the world. Funding remains our primary challenge. Nevertheless, we’ve continued to navigate these constraints to deliver high-quality, sustainable energy projects.

Our decisions are data-driven. We use geospatial tools and mapping to assess the economic potential of communities and prioritise high-impact interventions. Productive Use of Energy (PUE) is a key consideration—we target communities where electricity can boost local commerce and productivity through viable energy applications.

Security concerns, especially in the North, have disrupted some projects. How is the REA working with security agencies and communities to protect installations?

We haven’t had recent reports from field developers regarding major disruptions. Generally, we adopt a multi-stakeholder approach. Community engagement is central to project sustainability.

Our Rural Electricity Users Cooperative Society (REUCS) mobilises local support for infrastructure protection. We maintain strong ties with traditional leaders, youth groups and local governments to embed community ownership and social safeguards into project design.

We’ve also held regular roundtables with state governments, urging them to guarantee the security of deployed energy assets. By aligning with state security frameworks, we reduce the risk of vandalism or disruption.

With the rise of AI and smart grids globally, is the REA exploring digital innovations for rural electricity distribution and monitoring?

Absolutely. The REA is aligned with global best practices. We are enhancing our data management systems to support remote monitoring of energy assets across Nigeria.

We’re integrating Internet of Things (IoT) technologies—IoT-enabled mini-grids allow for real-time monitoring, consumer analytics, and fault detection. In addition, we’re exploring demand forecasting and digital payment systems like PayGo to improve credit access and planning efficiency.

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How has the Energising Education Programme (EEP) impacted federal universities and teaching hospitals? Any specific examples?

Historically, our tertiary institutions relied on expensive and inefficient diesel generators. Hundreds of millions of naira were spent annually with minimal power reliability.

The EEP addresses this. Phase I has been completed. Phase II, funded by the World Bank, has delivered solar hybrid power systems to 7 federal universities and 2 teaching hospitals.

Construction for Phase III is underway, targeting another 8 institutions with support from the African Development Bank (AfDB). President Tinubu has also approved Phase IV, with recent agreements signed with 8 additional federal universities, backed by the Renewed Hope Infrastructure Development Fund (RHIDF).

Once completed, the four phases will collectively deliver over 100MW of clean energy capacity, significantly reducing energy costs and improving academic productivity.

How is the REA leveraging the 2023 Electricity Act to drive competitiveness and efficiency in rural electrification?

The 2023 Electricity Act is a landmark reform. Its passage early in President Tinubu’s tenure reflects the administration’s commitment to sectoral transformation.

The Act empowers subnational governments to design and implement their own electrification strategies. This unlocks decentralised investments and accelerates infrastructure deployment in underserved areas.

Section 127 of the Act specifically mandates REA to electrify rural and underserved regions, promote renewables, and raise public awareness. We’ve embraced this by holding state-level roundtables to explore renewable energy opportunities and align them with private sector developers.

The $550 million Nigerian Electrification Project (NEP) has been key. What has been its impact, and how do you ensure transparency?

The NEP has been transformational. Since its 2018 launch, we’ve provided clean energy access to over 9 million Nigerians through 160 mini-grids and 1.2 million solar home systems.

Transparency is non-negotiable. The NEP was managed under a Project Management Unit (PMU) that enforced all World Bank fiduciary standards. Disbursements followed a results-based model with independent audits and third-party verification.

We are currently implementing DARES (Distributed Access through Renewable Energy Scale-up), a $750 million successor programme. It is the largest publicly funded electrification project in the world and builds on the success of NEP.

You once said REA has “zero abandoned projects.” How has this been achieved despite funding and logistical hurdles?

The Ministry of Power, under Adebayo Adelabu, has instructed a zero-tolerance policy on project failures. As a private-sector-driven sector, we work closely with developers to uphold high standards and enforce global best practices.

We adopt milestone-based disbursements, rigorous contractor vetting, and require sustainability plans that include community ownership. We also lean on blended finance and strong donor support to ensure timely delivery.

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With budget constraints, how is the REA exploring alternative funding beyond federal allocations and donor support?

Energy independence demands innovation. We’re expanding local and international public-private partnerships and exploring climate finance and blended capital options.

Through the Rural Electrification Fund (REF), we’re stimulating innovation while avoiding unsustainable consumption subsidies. We’re also actively supporting local manufacturing of PV panels and lithium batteries through partnerships.

For instance, with NASENI and LEMI, we’re building a lithium battery factory; with Oando Clean Energy, a 1.2GW panel plant; and with Green Vault, a $150m battery facility at Lekki Free Trade Zone. These investments will localise the supply chain and build a resilient energy ecosystem.

Some critics argue that mini-grids and solar systems are unreliable compared to the national grid. What’s your response?

That argument ignores lived realities. Mini-grids and solar systems are delivering reliable electricity to entire communities, markets, hospitals, and universities. They are designed to offset national grid weaknesses and support last-mile electrification.

Solar is nature-driven, demand-sensitive, and resilient. Its reliability improves with better designs, durable components, and long-term operations and maintenance (O&M) plans.

We’re also scaling up interconnected mini-grids—42 are in development—that combine solar and grid connections to deliver over 100MW of reliable energy.

What is the REA doing to boost local capacity for renewable energy technology and maintenance?

Local capacity is critical. The “Nigeria First” policy is encouraging local innovation and manufacturing. We’ve partnered with manufacturers and OEMs to build domestic production capacity.

Beyond factories, we’re investing in talent. Our STEM internship has trained 350 women nationwide. We’ve launched the NEXT GEN RESCOs Leadership Programme to train 120 young professionals in renewable energy.

These steps will position Nigeria as a clean energy manufacturing hub and help sustain long-term growth.