Nigeria’s power sector can become more reliable and attractive to investors if the country focuses on expanding mini-grids instead of relying on subsidies, according to the Managing Director of the Rural Electrification Agency (REA), Dr. Abba Aliyu.
Speaking at the first Samuel Ibiyemi Memorial Lecture, Dr. Aliyu explained that mini-grids should no longer be seen as projects designed only to provide electricity to rural communities. He said they have developed into a strong commercial solution that can improve electricity supply, reduce financial risks, and encourage more private investment in the energy sector.
Delivering a lecture titled “From Subsidy to Solvency: Can Mini-Grids De-risk Nigeria’s Power Sector?”, Aliyu stressed that Nigeria must change its approach to funding the electricity industry. Instead of spending public money to cover inefficiencies, he said government support should be used to encourage investors to finance power projects.
According to him, mini-grids are built around the actual electricity needs of communities and businesses. They also make use of digital payment systems, reduce energy losses, and provide investors with more predictable income. These advantages make mini-grid projects less risky and more attractive to both local and international investors.
Aliyu noted that Nigeria’s electricity challenges are not only caused by poor infrastructure but also by financial problems within the power sector. He pointed out that many electricity distribution companies continue to struggle with technical losses, while businesses across the country spend an estimated $14 billion every year generating their own electricity because of unreliable public power supply.
He said the REA is working to build an electricity market that investors can trust by creating projects that are financially sustainable.
Highlighting the agency’s achievements, Aliyu revealed that the REA has installed nearly 200 isolated mini-grids across Nigeria. These projects have provided more than 164,000 electricity connectionsto homes and businesses. In addition, about 1.4 million households and businesses have received stand-alone solar power systems, helping to attract over $1.2 billion in private investment commitments.
The REA is also expanding beyond rural communities by partnering with electricity Distribution Companies (DisCos) to build 48 interconnected mini-grids in urban and semi-urban areas. The new projects are expected to add about 288 megawatts of clean energy and battery storage to Nigeria’s existing electricity distribution network.
Aliyu explained that decentralized energy solutions are not meant to replace the national grid but to strengthen it by improving electricity supply and increasing access to reliable power.
He added that the long-term goal is to create an electricity market that eventually depends less on government funding as private investors take a larger role in financing energy projects. He believes this approach will help communities become centres of economic production instead of depending on unreliable electricity.
Earlier at the event, the Managing Director of NewsDirect TV, Miss Shindara Ibiyemi, welcomed guests and paid tribute to her late father, Prince (Dr.) Samuel Ibiyemi, whose legacy inspired the memorial lecture.
She described her father as a mentor who positively influenced many lives and said her own journey from being shy to leading a media organisation reflected his guidance and encouragement.
Miss Ibiyemi also announced the launch of the Samuel Folorunsho Ibiyemi Foundation, a platform created to continue her father’s legacy of generosity by supporting and improving the lives of more people. She added that focusing the inaugural lecture on the energy sector was a fitting tribute because of her father’s passion for reporting on Nigeria’s energy industry.
