FG to Launch Renewable Energy Firms to Compete with DisCos

The Federal Government of Nigeria, via the Rural Electrification Agency (REA), announced plans to create Renewable Energy Service Companies (RESCOs) that will compete with electricity distribution companies (DisCos) over the next 10 to 15 years. This initiative was disclosed by the Managing Director of REA, Abba Aliyu, during the Oriental News 2026 Conference in Ikeja, Lagos, where he was represented by Gboyega Ayoade, the Executive Director of Corporate Services at REA.

The agency aims to shift from isolated mini-grid projects to supporting developers in building utility-scale renewable energy networks that can serve entire communities independently from the national grid. The proposed RESCOs will provide consumers with an alternative to conventional DisCos by offering continuous clean energy through interconnected mini-grids powered by solar energy and battery storage.

Aliyu emphasized that Nigeria cannot rely solely on DisCos, as many communities lack electricity due to commercial unviability for operators. Agreements are being formed between mini-grid developers and DisCos in areas with minimal service.