Nigeria’s Rural Electrification Agency (REA) has completed a nationwide energy mapping exercise that identified more than 750,000 communities, a move the agency says will unlock targeted power investments and accelerate electrification. The mapping, described by REA Managing Director Dr. Abba Aliyu as a first for the country, provides detailed data on household numbers, electrification status, and the least-cost technology for each location.
Why the Energy Map Matters
For decades, Nigeria’s efforts to expand electricity access have been hampered by a lack of reliable data. According to Dr. Aliyu, the country has had about 16 presidents, each with the best intentions to improve electricity access, but what was missing was a structured national plan that identified the millions of Nigerians without power and outlined the most effective way to electrify them.
The new mapping changes that. It covers communities ranging from Lagos State areas with over 2.5 million households to settlements with just two or three houses. For each community, the REA now knows whether it is electrified or underserved, and whether the best solution is a standalone solar system, an isolated mini-grid, an interconnected mini-grid, or a grid extension. This data-driven approach, Dr. Aliyu said, has made implementation much easier.
Scaling Up Mini-Grids and Private Investment
The mapping comes alongside regulatory changes that allow the REA to pursue larger projects. Under the previous mini-grid regulation, the maximum capacity was one megawatt. After sustained engagement with the regulator, the rule was revised. Today, the agency can deploy isolated mini-grids of up to five megawatts and interconnected mini-grids of up to 10 megawatts. Dr. Aliyu noted that several African countries with fewer electricity challenges already permit private-sector mini-grids of up to 50 megawatts, underscoring the need for Nigeria to be more ambitious.
The REA has also shifted its funding model. Instead of simply awarding contracts, the agency now provides capital grants to de-risk deployment costs, which in turn reduces electricity tariffs. This approach, Dr. Aliyu said, reflects the current administration’s wisdom of providing grants for production rather than consumption. The agency partners with private-sector Renewable Energy Service Companies (RESCOs), which are trained to deploy renewable energy infrastructure. Under the Result-Based Financing (RBF) model, RESCOs must secure debt or equity financing, use REA data, select communities, and deploy the infrastructure.
Productive Energy Use in Agriculture
One of the REA’s key priorities is using electricity to boost agriculture, particularly by reducing post-harvest losses. In Plateau State’s Namu community, a major rice-producing area, the agency deployed a 50-kilowatt mini-grid under its Africa Mini-Grid programme. That pilot allowed one of the largest rice processing plants to switch from diesel to clean energy. Today, more than 200 bags of rice processed under the mini-grid are competitive in the market. The REA is now scaling up from 50 kilowatts to nearly five megawatts—a 100-fold increase—which will power the remaining 37 factories and surrounding communities.
State Engagement and Financial Inclusion
The REA has also introduced a State-by-State Roundtable, bringing together state executive teams, led by governors, alongside the private sector and the REA in Abuja. Last year, the agency held engagements with 27 states and is continuing with Anambra, Taraba, and the remaining states, including the Federal Capital Territory. The roundtables aim to align state government activities with REA programmes.
Every mini-grid deployed by the REA comes with 100 per cent metering and SCADA systems that track every unit of electricity generated, from the solar farm to households and businesses. This has led to a collection rate of up to 97 per cent. In one Abuja community, the arrival of a mini-grid spurred the creation of new businesses, including a business centre and POS outlets, and residents now use their phones to purchase electricity credit for their meters.
Local Solar Manufacturing Ambitions
On the manufacturing front, the REA is pursuing a strategy to capture a share of the global solar photovoltaic market. Globally, only seven major manufacturers—all Chinese—control about 75 per cent of production capacity. Rather than competing directly with China, the REA has signed a joint development agreement to establish 3.7 gigawatts of manufacturing capacity across Nigeria. Four facilities are located in the Lagos/Sagamu axis, two in Kano, two in Akwa Ibom, one in Bayelsa, and two in Lagos have already commenced operations.
The agency is also supporting local demand for Nigerian-made products. Levin Energies, a photovoltaic manufacturer in Ikotun, Lagos, has a production capacity of 150 megawatts and exports to Accra, Ghana. In Abuja alone, there is already more than 400 megawatts of manufacturing capacity. Dr. Aliyu said Nigeria is well positioned to become a renewable energy manufacturing hub in the near future.
Electricity as the Backbone of AI and Future Growth
Dr. Aliyu stressed that reliable electricity is central to Nigeria’s development, especially as artificial intelligence reshapes the global economy. He noted that AI cannot function without electricity, and that behind every response generated by platforms like ChatGPT is a packet of electricity. The future, he said, is the electrification of everything, with AI at its centre. Under the current administration, the REA is working to ensure every Nigerian has access to electricity, using data and private-sector partnerships to make that goal a reality.
