The Managing Director of the Rural Electrification Agency (REA), Dr Abba Aliyu, has disclosed that Nigeria’s renewable energy funding portfolio has hit $1.23bn.
Aliyu made the disclosure while hosting a bilateral benchmarking delegation from the Zanzibar Utilities Regulatory Authority (ZURA) in Abuja on Thursday.
On Nigeria’s portfolio, he noted that it is sustained through a combination of federal budgetary allocations, regulatory surpluses, and international development finance.
He explained that Nigeria’s long-term strategy is to reduce reliance on imported solar components, attract international manufacturers to set up domestic production plants, and build a resilient local value chain around renewable energy equipment.
Detailing the agency’s funding structure, Aliyu stated, “The REA receives funding from five distinct sources to execute electrification projects: appropriations from the National Assembly via the federal budget, operational surpluses including a two-percent allocation from NERC’s tariff structure, funds from Development Finance Institutions and donor bodies, in-kind grants from bilateral partners, and special intervention funds from the Federal Government.”
Addressing public perception around mini-grid pricing, Aliyu explained that rural customers comfortably pay cost-reflective tariffs because the service remains significantly cheaper than running fossil-fuel generators.
He noted that while media commentary often framing tariffs as prohibitive creates a false perception, consumers willingly pay around ₦250 per kilowatt-hour, compared to spending over ₦600 per kilowatt-hour on private generation.
To scale project delivery, the REA established Renewable Energy Service Companies (RESCOs) to deploy and operate mini-grids across the country.
Aliyu emphasized that several RESCOs are expanding rapidly, with some already managing operational portfolios of up to 30 megawatts.
He projected that upon the completion of ongoing integrated mini-grid projects, several RESCOs will manage generation, distribution, and metering portfolios exceeding 100 megawatts rivaling the capacity of traditional electricity distribution companies (DisCos).
Speaking during the visit, William Gboney, a World Bank consultant supporting ZURA, commended Nigeria as one of Africa’s foremost leaders in off-grid electrification and mini-grid regulation.
Gboney explained that the study tour was organized to allow Zanzibar’s electricity regulator to learn from Nigeria’s experience in off-grid governance, geospatial planning, and project execution, adding that universal electricity access must prioritize reliability, affordability, and economic productivity alongside grid coverage.