The Federal Government has announced plans to facilitate N1.1 billion in private sector funding aimed at advancing the power sector.
According to The PUNCH, this was revealed by the Managing Director of the Rural Electrification Agency, Abba Aliyu, during the ongoing Nigeria Energy Summit in Lagos, organized by Informa Markets.
The summit, themed “Breaking Barriers to the New Energy Era: Clean, Reliable and Sustainable,” provided a platform for industry stakeholders to discuss strategies to address the country’s electricity challenges.
Speaking at the event, Aliyu emphasized the government’s commitment to bridging the electricity gap.
He noted that while significant challenges persist, the government has invested heavily in the sector and introduced strategies to overcome these issues.
He stated, “In as much as we know there are lots of challenges in terms of the electricity aspect, the Federal Government is committing a lot of resources and a lot of strategies to be able to address this electricity gap.”
Aliyu highlighted that the current administration has already secured $750 million in funding, which is expected to unlock an additional N1.1 billion in private sector contributions.
This co-financing arrangement is critical, as the government does not bear the entire cost of infrastructure development.
“We provide grants and subsidies as a way of catalyzing this private sector funding,” he explained, while also disclosing ongoing efforts to generate N100 billion in local financing for power developers.
The REA Managing Director underscored the importance of diversifying Nigeria’s energy sources, describing solar energy as particularly easy to deploy.
He further revealed that the Minister of Power had directed the agency to explore other renewable sources like small and micro hydropower, biomass, and wind energy.
“In the next two to three weeks, you will have seen a notice of tender that will be sent out for a micro mini-grid that we are partnering with, which is about 336-kilowatt micro hydro plants that we are about to start implementing,”* he said.
Aliyu also announced plans to develop small and micro hydropower projects in several states, including Katsina, Ondo, Ekiti, Cross River, Nasarawa, and Sokoto, as part of the government’s broader push to integrate renewable energy into the national power grid.
Providing further insight into Nigeria’s ongoing electrification efforts, Aliyu shared statistics on recent accomplishments, “1.5 million Nigerians grew interconnected mini-grids to enhance electricity reliability. Three million of them grew isolated mini-grids to create electricity access for the first time, and about 12 million of them grew a mesh grid, stand-alone system, and solar home system. This is what the country is doing, and this programme is starting next month.”*
In his remarks, Aliyu also stressed the importance of financial viability for the sustainability of mini-grid projects, urging private sector players to ensure their financial capacity when undertaking such projects.
“Whether it is mini-grid, 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,” he added.
Co-founder of Lihon Energy, Hakeem Disu, praised Nigeria’s energy transition plan, stating that it was the most advanced in Africa.
He cited the REA’s solar and mini-grid initiatives as transformative, particularly for rural communities.
According to Disu, the renewable energy projects would not only improve access to electricity but also boost agricultural productivity through solar-powered irrigation systems and preservation methods like solar dryers.
“Over 75 per cent of negotiations are very much interested in renewable energy,”* he noted.
Meanwhile,, Exhibition Director of Energy Portfolio-MEA at Informa Markets, Ade Yusuf reflected on the changing dynamics of Africa’s energy sector. He described the continent as a growing hub for global economic growth, driven by its abundant natural resources and increasing interest in sustainable energy solutions.
“Across this dynamic region, energy markets are transforming at an unprecedented pace,” Yusuf said, emphasizing the summit’s role in fostering policy development, investment, and technological advancements in the renewable energy space.
