The Federal Government has revealed plans to secure N1.1 billion in private sector funding to boost the power sector. Abba Aliyu, Managing Director of the Rural Electrification Agency (REA), made this announcement during the Nigeria Energy Summit in Lagos, organized by Informa Markets.
The summit, themed “Breaking Barriers to the New Energy Era: Clean, Reliable and Sustainable,” focused on addressing Nigeria’s electricity challenges. Aliyu highlighted that while the government has committed $750 million towards closing the electricity gap, it expects this investment to attract N1.1 billion in private sector co-financing. He explained that the government provides grants and subsidies to encourage private investment and is working on securing N100 billion in local funding for power developers.
Aliyu emphasized the importance of exploring alternative energy sources, noting that solar power is easy to deploy. He added that the Minister of Power had instructed the REA to consider small hydro, biomass, and wind energy options. In the coming weeks, the agency plans to release a tender for a 336-kilowatt micro hydro project, and small hydro projects are also planned in Katsina, Ondo, Ekiti, Cross River, Nassarawa, and Sokoto.
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The REA is focused on expanding energy access, with 1.5 million Nigerians now benefiting from interconnected mini-grids, 3 million from isolated mini-grids, and 12 million from standalone solar systems. These initiatives aim to improve electricity reliability across the country.
Aliyu also stressed the need for the private sector to strengthen its financial viability to ensure the sustainability of mini-grid and off-grid projects. He pointed out that the commercial success of such projects depends on the financial capability of the private companies involved.
Hakeem Disu, co-founder of Lihon Energy, praised Nigeria’s energy transition as one of the most advanced in Africa, highlighting the opportunities created for investors. He noted that projects like solar-powered irrigation and agriculture dryers would significantly improve the livelihoods of rural populations.
In his opening remarks, Ade Yusuf, Exhibition Director at Informa Markets, emphasized Africa’s growing role in global economic growth and the importance of renewable energy, energy efficiency, and digitalization in transforming the continent’s energy markets.
