REA CEO Dr. Abba Aliyu Warns Against NARE Bill Risks

Dr. Abba Aliyu, the Managing Director/Chief Executive Officer of the Rural Electrification Agency (REA), expressed concerns regarding the Electricity Act (Amendment) Bill, 2025, which is currently before the National Assembly. The bill proposes the establishment of the National Authority for Renewable Energy (NARE) and the transfer of renewable-energy functions from the Nigerian Electricity Regulatory Commission (NERC), REA, and the Rural Electrification Fund to this new authority.

Aliyu stated that this would create regulatory confusion, potentially deterring investors from the sector. He highlighted that the bill's structure risks creating fragmentation in a market that is already viable.

Aliyu noted that 16 states have received regulatory oversight from NERC under the Electricity Act 2023. He warned that the introduction of another federal regulator could complicate jurisdictional issues.

Additionally, he mentioned that Nigeria's distributed-energy market is progressing, with over 1,000 mini-grids in development and a $750 million DARES program targeting 17.5 million Nigerians. REA has secured N350 billion in potential domestic financing commitments from various banks.

Aliyu emphasized the need for predictable investment rules and cautioned against diverting the Rural Electrification Fund to support a new institution.