In rural areas, residents sometimes pay higher tariffs than their urban counterparts. In some communities, power costs rise to 280 naira per kilowatt hour using mobile tokens. Meanwhile, other locations enjoy tariffs lower than urban Band A rates. The mix of energy sources remains dominated by solar, which developers find the most viable. Wind and biomass are under review, but biomass faces high logistics costs. Discussions on wind energy continue, with the Nigerian Wind Energy Council signing an MOU to explore small wind infrastructure deployment.
Nigeria’s renewable energy development is drawing lessons from its gas sector. Officials confirmed that the current electrification model mirrors the Nigeria Midstream and Downstream Gas Infrastructure Fund, where equity investments expand the sector instead of direct government contracts. This approach allows private developers to deploy projects while recovering costs through tariffs.
Rural Electrification Agency Takes the Lead
The Rural Electrification Agency (REA) sits at the center of this effort. Its mandate is clear: bring power to communities excluded from the national grid. With Nigeria ranked second only to India in the number of people without electricity, the task is urgent.
Officials say the government is rolling out the world’s largest public distributed renewable energy access program. This initiative targets 17.5 million Nigerians who still live without power. Progress is being achieved through the Niger Electrification Project and co-financed international programs with partners such as Japan. The REA is also working to improve reliability for Band D and Band E communities, which remain underserved.
Service Level Agreements for Power Reliability
Reliability remains a key demand for households and businesses. To address this, the government has structured service level agreements with electricity distribution companies. Solar mini grids now provide at least 10 hours of daytime power, while battery systems add another 4 hours. Distribution companies then supply the remaining hours, guaranteeing a minimum of 16 hours of power daily and, in some cases, 24-hour supply.
Millions Still Without Electricity
Nigeria’s electricity gap remains wide despite progress. Current figures show about 90 million Nigerians still lack access to electricity. However, achievements under the Niger Electrification Project provide hope. Officials revealed that 8 million people have gained electricity through the initiative. The program’s goal is to reach 17.5 million within three years, with further millions expected as new international financing and upcoming projects take shape.
A Step Toward Universal Access
Nigeria’s electrification strategy is setting the stage for long-term transformation. By using equity-driven models, private participation, and renewable energy, the government is reshaping how rural and underserved communities access power. With 8 million people already connected and millions more targeted, the shift toward universal access is no longer just a promise, it is becoming reality.