By Seun Ibiyemi
The Managing Director of the Rural Electrification Agency (REA), Dr. Abba Aliyu, has said mini-grids have evolved beyond rural electrification projects into commercially viable electricity delivery models capable of de-risking Nigeria’s power sector and attracting significant private investment.
Aliyu stated this while delivering the keynote address at the inaugural Samuel Ibiyemi Memorial Lecture held in Lagos on Friday.
L-R: Dr Bolaji Akinola, Special Adviser on Media to the Minister of Marine and Blue Economy, Hon.Rotimi Makinde, Former Member of House of Representatives representing Ife Federal constituency, Prince Mathew Ibiyemi, Publisher, NewsDirect, Dr Abba Aliyu, Managing Director Rural Electrification Agency, Dr Diran Fawibe, Chairman International Energy Services Limited, Dr Obinna Ezeobi, GM Corporate Communications, NCDMB and Mr Charles, Masters Energy Group Executive Director at the inaugural Samuel Ibiyemi Memorial lecture held in Lagos on Friday.
Speaking on the theme, “From Subsidy to Solvency: Can Mini-Grids De-risk Nigeria’s Power Sector?”, the REA boss challenged the conventional perception of decentralised energy, arguing that the future of Nigeria’s electricity sector depends on redirecting public resources from subsidising inefficiencies to catalysing private-sector investment.
“Too often, mini-grids are viewed only as rural electrification projects. In reality, they represent a new commercial model for electricity delivery. They are built around verified demand, utilise digital revenue collection, minimise losses, and provide investors with greater certainty over cash flows. In other words, they reduce investment risk,” he said.
According to Aliyu, Nigeria’s electricity crisis is not only an infrastructure challenge but also a financing problem, noting that electricity distribution companies continue to struggle with technical and commercial losses while businesses spend an estimated $14 billion annually on self-generated power.
He said the agency is repositioning the country’s electricity market to inspire investor confidence by creating commercially sustainable energy solutions.
“The future of public financing should not be to subsidise inefficiency but to de-risk investment. Public resources should catalyse private capital, not replace it,” he added.
L-R: Mr Olugbenga Owotomo, Head Brand Management & Corporate Communucations, Polaris Bank,Hon.Rotimi Makinde, Former Member of House of Representatives representing Ife Federal constituency, Prince Mathew Ibiyemi, Publisher, NewsDirect, Miss Shindara Ibiyemi, MD, NewsDirect TV, Wife of the late Founding Publisher of NewsDirect, Mrs Titilayo Ibiyemi, Miss Favour Ibiyemi, Dr Abba Aliyu, Managing Director Rural Electrification Agency, Dr Diran Fawibe, Chairman International Energy Services Limited, Mr Charles, Masters Energy Group Executive Director and Dr Obinna Ezeobi, GM Corporate Communications, NCDMB at the inaugural Samuel Ibiyemi Memorial lecture held in Lagos on Friday.
Highlighting the agency’s achievements, Aliyu disclosed that the REA has deployed nearly 200 isolated mini-grids and delivered more than 164,000 mini-grid connections nationwide.
He added that about 1.4 million households and businesses have also been connected through stand-alone solar systems, attracting over $1.2 billion in private-sector financing commitments.
The REA Managing Director further revealed that the agency is extending its intervention into urban and peri-urban areas through partnerships with electricity Distribution Companies (DisCos) to develop 48 interconnected mini-grids capable of injecting about 288 megawatts of clean electricity and battery storage into existing distribution networks.
“This demonstrates that decentralised energy is not competing with the grid; it is strengthening it,” he said.
Aliyu stressed that the long-term goal is to create an electricity market that gradually becomes less dependent on government intervention.
“The question before our generation is how government support can create a market that ultimately requires less government support. That is the transition from subsidy to solvency,” he said.
He also envisioned a future where communities become centres of production rather than consumption, driven by resilient and investment-friendly electricity markets.
Earlier in her welcome address, the Managing Director of NewsDirect TV, Miss Shindara Ibiyemi, expressed appreciation to dignitaries, family members and friends who attended the inaugural memorial lecture in honour of her late father, Prince (Dr.) Samuel Ibiyemi, three years after his passing.
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She described her emergence as the head of NewsDirect TV as a reflection of her father’s mentorship and commitment to nurturing people.
“He never left anyone he came across the same; under his guidance and influence, you simply became a better version of yourself,” she said.
Ibiyemi noted that the energy sector was chosen as the focus of the maiden memorial lecture in recognition of her father’s passion for energy journalism throughout his career.
The event also featured the official launch of the Samuel Folorunsho Ibiyemi Foundation, established to preserve the late journalist’s legacy of generosity and provide a sustainable platform for supporting and empowering lives.
