Mini-Grids Attract Investment, Says REA Managing Director

Dr. Abba Aliyu, the Managing Director of the Rural Electrification Agency (REA), emphasized the commercial viability of mini-grids during the inauguration of the Samuel Ibiyemi Memorial Lecture.

He argued that mini-grids represent a new commercial model for electricity delivery in Nigeria, capable of attracting substantial private investment. The REA has successfully deployed nearly 200 isolated mini-grids, providing electricity to 164,000 connections across the country, and has also connected approximately 1.4 million households and businesses through standalone solar systems.

Dr. Aliyu noted the importance of reducing investment risks and enhancing cash flow certainty for investors.

He highlighted the need for a shift from traditional public resource allocation towards catalyzing private investment in the energy sector. Additionally, the REA is expanding its network by partnering with mainstream electricity distribution companies to develop 48 interconnected mini-grids, which will inject approximately 288 MW of clean energy into the existing distribution network.