The Rural Electrification Agency (REA) has secured $750 million in funding to expand electricity access to 17.5 million Nigerians.
The agency noted that 1.5 million Nigerians have gained access to interconnected mini-grids, improving the reliability of electricity supply.
Abba Abubakar Aliyu, the managing director of the REA, made this known at the Nigeria Energy Leadership Summit with the theme “Breaking Barriers to the New Energy Era: Clean, Reliable and Sustainable” which was organised by Informa market.
He said: “Three million people have benefited from isolated mini-grids, granting them access to electricity for the first time, while around 12 million now use mesh grids, stand-alone systems, or solar home systems. This initiative is part of the country’s ongoing efforts, with the programme set to launch next month.
“We are also working to enhance the commercial viability of industry players, and this process began even before the findings of the World Bank report.”
In his keynote address titled *Sun, Wind and Water: Harnessing Nigeria’s Renewable Power Potential*, Abba Aliyu expressed concern over the global estimate of 885 million people without access to electricity, noting that 85% of this population resides in sub-Saharan Africa. Additionally, the number of people without reliable electricity access has been rising.
Citing a report produced by DALPA, Aliyu highlighted that the off-grid renewable energy sector, which is often discussed, provides electricity to over 561 million people worldwide. Of this figure, 55 percent are located in sub-Saharan Africa.
He further explained that the report identified how microeconomic factors impact the global delivery of electricity access. It’s not just an issue in Nigeria—worldwide, factors such as inflation and financing costs slow down the expansion of electricity access, affecting nearly every country.
“And based on this, we have now started seeing globally a trend of merger and acquisition. So the private developers that are accessing this financing to cater for this electricity access based on the fact that the impact of the macroeconomic variables and how difficult now to access financing, foreign or local financing, they have now started seeing the need to merge or they acquire smaller companies for them to increase their base and increase their ability to attract financing. So that is another big trend that we are seeing.”
The REA boss called for an improvement in the commercial viability of the players. “The private sectors must improve their financial viability.
Read also: Rural Electrification Agency has delivered power to over 7.5 million Nigerians – Salihijo Ahmad
“The entire sustainability of the mini-grid, was any project finance infrastructure, is reliably computed upon the financial viability of the player that is implementing this. Whether it’s mini-grid, whether it’s off-grid, or any infrastructure financing, that viability is subject to the commercial viability of the implementing app, whether it’s the private sector or public sector. So, in the off-grid, that financial viability is contingent upon how financially lucrative and capable the private sectors that are deploying this infrastructure app,” he said.
On the other hand, Hakeem Disu, a co-founder, of Lihon Energy, applauded the Nigerian energy transition stating that it is the most advanced compared to other African Nations because of the opportunities to go through some of the energy transaction plans.
“The mini green and solar system that is coming from the rural electrification agency is the way governments pointed that we can use to improve livelihood and economic activities of the people in rural area.”
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