Nigeria faces $23bn power access gap as REA maps 143,000 communities

Nigeria will require an estimated $23 billion to bridge electricity gaps in underserved and unserved communities nationwide, a disclosure that underscores both the scale of the country’s energy deficit and the urgency of accelerating its clean energy transition.

The Managing Director of the Rural Electrification Agency (REA), Abba Abubakar Aliyu, disclosed the figure in Abuja during the switch-on ceremony of Phase 1 of the Greening of the UN House solar project — an event that doubled as a demonstration of how renewable energy could power Nigeria’s march towards universal access.

Aliyu said a comprehensive nationwide mapping exercise by the agency identified approximately 143,000 communities at varying levels of electricity access.

While some are fully electrified, many remain underserved, and a significant number have no access at all.

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The mapping, he explained, 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 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.

Aliyu described the funding requirement not as an abstract figure but as a clear signal of the work ahead if Nigeria is to achieve universal electricity access while pursuing a cleaner energy future.

The ceremony at the UN House offered a practical illustration of what that transition could look like. The United Nations’ Resident and Humanitarian Coordinator in Nigeria, Mohammed Fall, described the solarisation of the complex as both symbolic and strategic.

He said the installation — a 400-kilowatt peak solar photovoltaic microgrid expandable to 700 kilowatts, supported by 650 kilowatt-hours of lithium-ion battery storage — would cut electricity costs by about 40 per cent annually. The system also incorporates artificial intelligence-driven smart energy management and Internet of Things monitoring technology, enabling real-time performance tracking.

Before the solar upgrade, electricity costs at the UN House ranged between N432 million and N540 million annually. With the new system operational, annual savings are projected between N173 million and N216 million, alongside a reduction of nearly one million kilowatt-hours in grid electricity consumption each year and an estimated 300 tonnes cut in carbon emissions.

Fall said the initiative reflects the global shift toward renewables championed by UN Secretary-General António Guterres, noting that Nigeria’s abundant sunshine positions it advantageously in the clean energy race.

Also speaking, Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, said the project aligns with reforms under the Electricity Act 2023, which aim to decentralise the power sector, expand renewable energy deployment and attract private sector investment.

He described the solar installation — capable of meeting about 40 per cent of the UN House’s electricity demand during a typical workday — as evidence that renewable energy is no longer aspirational but economically viable and scalable.

Beyond the symbolism of powering an international complex with sunlight, the event spotlighted a deeper national imperative: mobilising billions of dollars in public and private financing to light up thousands of communities still in the dark.

For Nigeria, the $23 billion figure is more than a cost estimate — it is a stark measure of the infrastructure gap that must be closed to unlock economic opportunity, strengthen social services and anchor a sustainable energy transition.