The Managing Director of the Rural Electrification Agency, Abba Aliyu, has advocated the adoption of mini-grids by Nigerian households and businesses to reduce the estimated $14 billion spent annually on self-generated electricity.
Speaking in Lagos at the inaugural Samuel Ibiyemi Memorial Lecture themed, “From Subsidy to Solvency: Can Mini-Grids De-risk Nigeria’s Power Sector?”, Aliyu said mini-grids have evolved beyond rural electrification projects into a commercially viable model capable of de-risking the power sector and attracting substantial private investment.
He described distributed renewable energy as Nigeria’s fastest route to sustained economic growth, arguing that the real transformation of the power sector lies in redirecting public resources from subsidising inefficiencies to catalysing private investment.
“Too often, mini-grids are viewed only as rural electrification projects. In reality, they represent a new commercial model for electricity delivery. They are built around verified demand, utilise digital revenue collection, minimise losses and provide investors with greater certainty over cash flows. In other words, they reduce investment risk,” he said.
Aliyu noted that Nigeria’s electricity crisis is not only an infrastructure challenge but also a financial one.
“With distribution companies bogged down by technical losses and Nigerian businesses spending an estimated $14 billion annually on self-generation, REA is pivoting toward building an electricity market that global and local investors can trust,” he said.
To demonstrate the commercial viability of the model, the REA boss disclosed that the agency has deployed nearly 200 isolated mini-grids and delivered more than 164,000 mini-grid connections across the country.
According to him, about 1.4 million households and businesses have also been connected through stand-alone solar systems, attracting more than $1.2 billion in private-sector financing commitments.
Aliyu further revealed that the agency is expanding into urban and peri-urban areas through partnerships with electricity Distribution Companies (DisCos) to develop 48 interconnected mini-grids, a project expected to inject about 288 megawatts of clean generation and battery storage into existing distribution networks.
“This demonstrates that decentralised energy is not competing with the grid; it is strengthening it,” he said.
“The question before our generation is how government support can create a market that ultimately requires less government support. That is the transition from subsidy to solvency,” he added.
In her remarks, the Managing Director of NewsDirect, Shindara Ibiyemi, said it was fitting that the inaugural lecture focused on the energy sector, given her late father’s passion for the industry during his distinguished journalism career.
The event also marked the official launch of the Samuel Folorunsho Ibiyemi Foundation, established to institutionalise the late editor’s generosity and provide a sustainable platform for impacting lives.
