Financial Energy Review
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, has announced an ambitious plan to provide electricity to 25 million Nigerians within the next three years. Speaking on Arise Television’s This Morning Show on Monday, Aliyu emphasized the importance of a sustainable commercial framework for rural electrification and highlighted significant financial commitments from international partners.
“The present government wants me to face this challenge [of providing electricity to underserved Nigerians] head-on. That is why the target we set for ourselves is to electrify 25 million Nigerians in the next three years as quickly as possible,” Aliyu stated.
$750 Million World Bank Support
To accelerate the electrification drive, the Federal Government has secured a $750 million funding package from the World Bank, which will be used to provide power to 17.5 million Nigerians. Aliyu assured that the funds would be strategically deployed for maximum impact, with a structured implementation plan in place.
Breaking down the electrification strategy, Aliyu explained that different solutions would be deployed based on regional and infrastructural needs. According to him:
30 million Nigerians will receive electricity via isolated mini-grids.
1.5 million Nigerians will be connected through interconnected mini-grids.
12 million Nigerians will benefit from mesh grids and standalone home systems.
This diversified approach, he said, is expected to accelerate electrification efforts while ensuring sustainability and efficiency.
A Commercially Viable Approach
Aliyu was clear in his stance that free electricity models are unsustainable and ultimately lead to failure.
“I would like to make a very clear statement that any framework regarding electricity—any infrastructure framework designed to provide electricity for free—is bound to fail,” he said.
He stressed that the cost of electricity must be cost-reflective to ensure long-term sustainability.
“Providing electricity needs to have an inbuilt commercial framework to allow its sustainability. The cost of providing electricity, which is the tariff, must be cost-reflective because sustainability is key,” Aliyu explained.
Data-Driven Approach
When asked whether the agency had identified the areas most in need of electrification, Aliyu confirmed that comprehensive data had been shared with state governments.
“In all the roundtables we have held with the states, we have provided them with these data,” he said.
Providing further insights into the national electrification landscape, Aliyu noted, “In terms of data for the entire country, we know Nigeria has over 150,000 potential mini-grid sites that can provide electricity for about 40 million Nigerians. We also have specific data for each of the states.”
However, he acknowledged that behavioural patterns and implementation challenges remain an obstacle to achieving the targets.
“In terms of behavioural patterns, it’s challenging based on our experience and what we have seen,” he admitted.
A Leadership Focused on Results
President Bola Tinubu officially appointed Abba Aliyu as the MD of REA on Friday. Before this appointment, Aliyu had been serving in an acting capacity since March 2024.
Prior to his role at REA, he was responsible for overseeing the implementation of a $550 million facility jointly funded by the World Bank ($350 million) and the African Development Bank ($200 million).
His experience in handling large-scale electrification projects is expected to play a crucial role in ensuring that the new targets set by the REA are met within the stipulated time frame.
With millions of Nigerians still lacking access to electricity, Aliyu’s plan represents a significant push to bridge the country’s energy gap and promote economic growth through improved power access. Whether the ambitious target of electrifying 25 million people in three years will be achieved remains to be seen, but the REA MD has assured Nigerians that the agency is committed to delivering on its mandate.
