Precious Anga
Lagos — The Federal Government has said solar-powered mini-grids are becoming increasingly attractive to investors, describing the technology as a commercially viable solution that could transform electricity supply and unlock greater private sector investment in Nigeria’s power sector.
Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, stated this on Friday in Lagos, where he said the country’s growing mini-grid market is changing perceptions of off-grid electricity from a rural intervention to a sustainable business opportunity.
According to him, the expansion of solar mini-grids is helping to de-risk investments in the electricity sector while creating opportunities to attract substantial private capital into power infrastructure.
Aliyu said the long-term solution to Nigeria’s electricity challenges lies in redirecting public resources from subsidising inefficient systems towards creating an enabling environment for greater private sector participation.
He added that the Federal Government’s renewable energy initiatives have already begun easing the financial burden on businesses, noting that Nigerian companies spend an estimated $14 billion annually on self-generated electricity due to unreliable grid supply.
“Too often, mini-grids are viewed only as rural electrification initiatives,” Aliyu said.
“In reality, they represent a new commercial model for electricity delivery.”
He maintained that expanding investment in solar mini-grids would improve electricity access, reduce dependence on expensive self-generation and strengthen the country’s transition towards a more reliable and financially sustainable power sector.
Aliyu said the REA would continue working with investors and development partners to accelerate the deployment of renewable energy projects across underserved communities and commercial clusters, positioning solar mini-grids as a key driver of Nigeria’s energy transition and economic growth.
