As Nigeria seeks to diversify its energy sources and reduce its dependence on fossil fuels, the Rural Electrification Agency (REA) has become a pivotal player in driving its energy transition plan.
With a mission to increase access to modern energy services, particularly in underserved and off-grid communities, REA’s interventions have shaped Nigeria’s path toward a sustainable and inclusive energy future.
Despite abundant natural resources, over 60 million Nigerians still lack access to electricity, a challenge that disproportionately affects rural areas. The government’s Energy Transition Plan, introduced to align with global climate change commitments and the United Nations Sustainable Development Goals, aims to address this disparity by expanding renewable energy infrastructure and reducing carbon emissions.
REA, established by the federal government, is the lead agency coordinating these initiatives. It focuses on delivering decentralised electrification solutions through off-grid solar mini-grids, standalone solar home systems, and mini-hydropower projects. These interventions target communities far from the national grid and where grid extension is not economically viable.
Nigeria’s Energy Transition Plan targets achieving 30 per cent renewable energy contribution in the national energy mix by 2030 as part of its broader vision to reach 30 gigawatts (GW) of electricity capacity.
This “30-30-30” goal stands for 30 GW of total grid-connected capacity, with 30 percent of that coming from renewable sources such as solar, wind, biomass, and hydroelectric power by 2030 and the REA has been at the forefront of driving the actualisation of the target.
Key Interventions
Since the beginning of 2025, the REA has intensified efforts to provide reliable, affordable, and sustainable electric power to unserved and underserved rural and peri-urban communities across Nigeria. The agency’s key activities include:
Deployment of Renewable Energy Systems: REA has commissioned numerous solar mini-grids and hybrid power plants, such as the recent 2.5MW solar hybrid power plant at the Nigerian Defence Academy, under the Nigeria Electrification Program’s (NEP) Energizing Education Programme Phase II. These projects enhance electricity access for educational institutions, healthcare facilities, households, and small businesses.
Scaling Off-Grid Solutions: Through the NEP, REA has expanded solar home systems and mini-grids, directly impacting over 7.8 million Nigerians with clean energy. The project focuses on increasing access to electricity services for households, MSMEs, educational, and healthcare facilities.
Public-Private Partnerships: REA has strengthened collaboration with state governments and private sector investors to implement scalable energy access infrastructure. For example, partnerships with states like Ekiti and Delta support hybrid mini-grid projects and productive use appliances, stimulating local economies.
A key aspect of REA’s approach is leveraging public-private partnerships to accelerate the deployment of renewable energy technologies. By providing grants, concessional financing, and technical support to energy companies, the agency lowers the barriers for private sector involvement.
For instance, under the Nigeria Electrification Project (NEP), jointly funded by the World Bank and the Nigerian government, REA has facilitated investments exceeding $100 million in renewable energy access projects. This initiative has connected over 500,000 households and businesses to clean energy, improving livelihoods and economic opportunities in remote locations.
The managing director/CEO of REA, Engr. Abba Aliyu, during various engagements including the launch of the Nigeria Public Sector Solar Initiative at the Budget Office in Abuja and the signing ceremony of a landmark partnership between REA and the United Nations Development Programme (UNDP), highlighted that Nigeria needs approximately $410 billion to fully transition to clean energy and about $40 billion to close its electricity access gap.
Aliyu emphasised the importance of localising renewable energy production to create jobs and boost the economy, aligning with President Bola Ahmed Tinubu’s economic strategy.
He described this partnership with the UNDP as a “game-changer for Nigeria’s clean energy future,” aimed at unlocking opportunities in local content, innovation, research, and sustainable investment. He stressed turning the electricity access challenge into an opportunity for job creation and lauded collaborations with companies like LPV Technologies, promoting talent development and local manufacturing .
The REA-UNDP agreement outlines five key areas of collaboration for transformative impact which include:
Energizing Education and Innovation: The partnership will integrate UNDP’s University Innovation Pods (UNIPODS) and Maker Spaces into REA’s Energizing Education Programme (EEP). This will transform federal universities and teaching hospitals into hubs of innovation, providing students with the resources to develop practical skills and build solutions for local and national challenges.
Scaling the NEXTGEN Initiative: UNDP will support the expansion of REA’s NEXTGEN initiative, a critical program designed to train a new generation of clean energy professionals. This collaboration will create a national pipeline of talent, address youth unemployment and equipping young Nigerians with the skills needed to thrive in the growing clean energy sector.
State-Level Policy and Technical Support: The partnership will provide crucial support for the effective implementation of the new Electricity Act. Through state-to-state engagements, UNDP and REA will offer technical assistance and policy guidance to help subnational governments navigate the new regulatory framework and develop harmonized energy policies.
Mobilizing Innovative Financing: Recognising the need for sustainable funding, the partners will explore innovative solutions to unlock development financing, private capital, and business partnerships. UNDP’s expertise in blended finance will be leveraged to de-risk projects, attract investment, and ensure the long-term sustainability of clean energy projects, including institutional strengthening and capitalizing the Rural Electrification Fund (REF).
Strategic Research and Communication: The collaboration will advance joint research, knowledge generation, and communication efforts to inform policy decisions and build public awareness. Producing regular robust data and evidence on sustainable energy progress, will ensure that interventions are targeted and impactful, while also showcasing successes to build public support for the clean energy access and transition in Nigeria.
This strategic partnership reflects UNDP’s ongoing commitment to supporting state-level development that is inclusive, resilient, and driven by local leadership. By joining forces, UNDP and REA are poised to accelerate progress toward Nigeria’s energy and development goals, creating a brighter, more sustainable future for all.
Minister of Power, Chief Adebayo Adelabu, speaking at the 2025 Africa Energy Forum in Cape Town and the 2025 Sustainable Energy for All (SEforALL) Global Forum in Barbados, underscored the need for a well-structured policy framework to support Nigeria’s and Africa’s energy transition plans.
He highlighted Nigeria’s National Integrated Electricity Policy as critical for harmonising generation, transmission, distribution, and renewable expansion efforts. Adelabu advocated a pragmatic approach balancing the shift to renewable energy with the continued use of hydrocarbons for economic security. He identified grid modernisation, increased renewable integration, and decentralised energy solutions as priorities for Nigeria’s sustainable power future.
Aligning with Nigeria’s Climate Commitments
The agency’s work aligns closely with Nigeria’s Nationally Determined Contributions under the Paris Agreement, emphasising expanding renewable capacity and improving energy efficiency. By facilitating off-grid renewable solutions, REA contributes to reducing greenhouse gas emissions, improving air quality, and promoting energy security.
Government officials and industry stakeholders have applauded REA’s role in advancing the energy transition agenda. “The Rural Electrification Agency is instrumental in ensuring no Nigerian is left behind in the energy transition,” said a senior official from the Ministry of Power. “Their interventions are transforming rural communities and demonstrating the viability of clean energy.”
The executive director of the Rural Electrification Fund (NEF), Engr. Doris Uboh, during REA’s partnership event with Delta State government aimed at off-grid power solutions, emphasized the importance of public-private partnerships, international collaboration, innovation, capacity building, and policy advocacy to scale renewable energy deployment in rural communities. Uboh outlined the role of mini-grids and solar home systems in driving socio-economic growth and increasing energy access equity across Nigeria .
Promoting Innovation and Local Capacity Building
REA is actively fostering innovation and skills development within the renewable energy sector. Through capacity-building programs, training workshops, and support for local manufacturers, the agency nurtures a sustainable ecosystem for clean energy technologies.
One notable effort is the agency’s support for setting up solar assembly plants and maintenance hubs in various states. This not only reduces costs associated with importing equipment but also creates jobs and enhances local expertise.
Challenges and the Road Ahead
Despite impressive progress, REA faces challenges including funding constraints, regulatory hurdles, and infrastructure limitations. Scaling up renewable energy deployment requires sustained political will, private sector engagement, and international support.
Looking ahead, REA plans to expand its programs, deepen stakeholder collaboration, and harness emerging technologies like battery storage and smart grids. These efforts aim to enhance resilience and flexibility in Nigeria’s energy system, ensuring a just and equitable transition for all Nigerians.
REA’s strategic interventions and the leadership’s vision are vital to Nigeria’s energy transition plan, providing millions of people access to clean, affordable, and reliable electricity. By championing renewable energy and empowering local communities, the agency is helping to shape a sustainable energy future that supports economic development, environmental stewardship, and social inclusion. As Nigeria moves forward, REA’s continued leadership will be essential in meeting the country’s ambitious energy and climate goals.
