Business
‘Nigeria Requires $23bn To Bridge Electricity Gap In Underserved, Unserved Communities’
The Rural Electrification Agency (REA), has said that the Nigerian power sector requires an estimated $23 billion to bridge electricity gaps in underserved and unserved communities nationwide and provide them with sustainable electricity.
The Managing Director, REA, Abba Abubakar Aliyu, who disclosed the figure during the switch-on ceremony of Phase 1 of the Greening of the UN House solar project, in Abuja, said a comprehensive nationwide mapping exercise by the agency identified approximately 143,000 communities at varying levels of electricity access.
This revelation highlights the volume of Nigeria’s energy deficit and the urgency of hastening its clean energy transition.
Aliyu stated that while some are fully electrified, many remain underserved, and a significant number have no access at all.
He noted that the mapping cut across Nigeria’s demographic spectrum from sprawling urban centres with over 2.5 million households in Lagos State to remote settlements with as few as two households.
Each community, he added, was assessed to determine the most cost-effective electrification option, whether through grid extension, mini-grids or standalone solar systems.
“By layering technical data with cost analysis, the REA concluded that $23 billion represents the least-cost pathway to strengthening supply in underserved areas and connecting those without power.
“The disclosure lays bare the magnitude of Nigeria’s electricity challenge at a time when reliable power remains central to economic growth, industrial productivity and social development. Businesses, hospitals, schools and households across the country continue to grapple with erratic supply and high energy costs, often resorting to expensive diesel alternatives,” he said.
Aliyu further remarked that the funding requirement is not as an abstract figure but a clear signal of the work ahead if Nigeria is to achieve universal electricity access while pursuing a cleaner energy future.