Nigeria is seeking an estimated $23 billion to drive a nationwide renewable energy push that could transform electricity access for more than 119 million people, boost economic productivity, and reduce dependence on fossil fuels.
This comes as the Federal Government, through the Rural Electrification Agency (REA) and the Delta State government, signed a pact yesterday in Abuja to provide power to over 386,046 off-grid communities and create 31,220 new jobs in the state.
Going by the government’s Universal Electrification for Nigeria, Least Cost Model, a combination of solar home systems, mini-grids, and grid extensions, could address the country’s power supply deficit.
With that, an additional 22 million households could benefit from a yearly 11,000 GWh of power, equivalent to about 1.3 GW of average generation. To reach this goal, around $14 billion is required upfront, with the remainder spread over subsequent phases.
According to the framework, 45 per cent of new connections would come from solar home systems, especially in sparsely populated rural areas. Mini-grids would cater for 31 per cent of connections in dense but remote communities, while grid extensions would account for 24 per cent in urban clusters near existing transmission lines. The aim is to guarantee a minimum Tier 2 access level, ensuring affordable, reliable, and sustainable electricity nationwide.
Governor of State, Sheriff Oborevwori, has stressed the urgency of diversifying the state’s energy mix, noting that nearly 65 per cent of rural communities remain unserved or underserved.
The Managing Director of REA, Aliyu Abba, said a mapping exercise identified 471 off-grid communities where 386,000 people could be connected in Delta State.
Electrifying these areas could generate up to $158 million in private investment and create over 31,000 jobs, he noted.
He added that 532 schools and 180 healthcare centres could also be powered, while agriculture also stands to gain, with Delta’s key crops—oil palm, cassava, yams, vegetables, and maize, requiring energy for processing and preservation.
Aliyu projects that scaling off-grid power in Delta and similar states could lift Nigeria’s Gross Domestic Product (GDP) by $2.9 billion yearly. This comes alongside improved livelihoods and reduced dependence on costly fossil fuels.
Meanwhile, the House of Representatives Public Accounts Committee has summoned 11 electricity Distribution Companies (Discos) to explain an outstanding debt of ₦2.6 trillion owed to the federation account.
The resolution was reached yesterday during an investigative hearing chaired by Bamidele Salam, following a review of the 2021 Auditor-General’s report.
The Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) Plc, Mr Johnson Akinnawo, who appeared before the committee, confirmed the liabilities, supported by NBET documents showing the debt profile as of September 30, 2020.
The Auditor-General’s report also flagged other irregularities in the power sector, including N30 billion uncollected debt by NBET from market operators, a N549 million shortfall in NBET’s one per cen income from institutional charges, N100 billion paid to Generation Companies (GENCOs) for electricity not delivered to the national grid, N26 billion owed Nigeria by two foreign firms for electricity exports, N166 billion under-remittance by Discos below NERC’s minimum threshold, and N2.7 billion in unpaid invoices by the 11 Discos.
