Nigeria needs $23bn to expand electricity access to 143,000 communities as power shortage continues to hinder economic growth, says REA.
Nigeria will require an estimated $23 billion to bridge electricity gaps in underserved and unserved communities nationwide, a revelation 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 Aliyu, disclosed the figure in Abuja during the switch-on ceremony of Phase 1 of the Greening of the UN House solar project.
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.
The mapping, he explained, cuts 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.
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.
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 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.
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 1 million kilowatt-hours in grid electricity consumption each year and an estimated 300 tonnes cut in carbon emissions.
Also, a former President of the National Industrial Court of Nigeria (NICN) and Administrator of the National Judicial Institute (NJI), Abuja, Justice Babatunde Adejumo (rtd), has described electricity shortage as Nigeria’s most pressing challenge, warning that economic growth, healthcare, education and security cannot thrive without stable power supply.
Adejumo made the remarks during a visit to the REA in Abuja, where he commended ongoing efforts to expand electricity access, and soughtcollaboration to enhance power supply at the institute.
Adejumo maintained that sustainable national development would remain difficult without reliable power, explaining that electricity is fundamental to driving productivity, particularly in a private-sector-driven economy, which he said is the hallmark of developed nations.
“The number one problem of Nigeria is power,” he said, noting that small businesses such as barbers, hairdressers and tailors depend heavily on electricity to operate efficiently.
He argued that countries with thriving economies rely less on government employment and more on private sector productivity, which in turn depends on stable infrastructure, particularly electricity.
“In many civilized countries, how many per cent are civil servants? Not much. It is the private-sector-driven economy that makes a country okay,” Adejumo emphasised.
Drawing comparisons with major emerging economies such as China and India, the retired jurist noted that automation and modern production systems depend entirely on stable power supply.
“In those countries, production processes are automated. You put in the raw materials and the system works. But that is because electricity is stable,” he added.
Despite the challenges, Adejumo expressed optimism that Nigeria was gradually moving toward improved electricity access. “We are getting there. We are getting to that tunnel and we are seeing the end of the tunnel. Light will come,” he said.
He praised the REA for its role in expanding electricity access through renewable energy projects, community electrification initiatives and partnerships with private sector investors.
The retired judge said the agency’s programmes were helping to uplift communities through infrastructure development, job creation, support for education and healthcare services. According to him, electricity plays a critical role in modern healthcare delivery, particularly in operating advanced medical equipment.
“If there is a hospital and they put MRI machines and other equipment, without electricity to run them, everything will go to naught,” he said.
Adejumo also called for a broader definition of rural communities in Nigeria, arguing that lack of basic infrastructure such as electricity and water should qualify any location as rural regardless of its geographical location. “Rural does not mean the bush. A city without light and water is a rural area,” he argued.
He therefore urged the REA to extend its interventions to such underserved communities as well as to the NJI, the intellectual and education arm of the country’s judiciary.
Highlighting the importance of electricity to the judiciary, Adejumo noted that modern judicial training and operations rely heavily on technology and digital infrastructure. He said the NJI, which was established in 1992 to coordinate training and retraining of judicial officers, currently trains about 1,500 judges annually.
The institute, he explained, hosts about 900 residents and operates more than 300 buildings, including training facilities and a hospital equipped with modern medical equipment. However, he warned that the effectiveness of these facilities depends on steady electricity supply.
Besides, he emphasised the role of the judiciary in maintaining order and protecting property rights, noting that a functioning legal system ensures public safety and economic stability. He urged continued collaboration between institutions to address national development challenges.
Responding, the Managing Director and Chief Executive Officer of the Rural Electrification Agency, Abba Aliyu, said the federal government had launched the most comprehensive electricity access programme in Nigeria’s history.
Aliyu disclosed that the government was currently implementing what he described as the world’s largest publicly funded renewable energy electrification initiative.
According to him, the programme involves a $750 million investment that is expected to attract an additional $1.1 billion in private sector funding. The initiative, he said, will support the deployment of about 1,350 mini-grids across the country, including 250 interconnected systems designed to supply electricity to underserved communities.
Aliyu explained that the agency had also made significant progress under the Energising Education Programme (EEP), which provides solar-powered electricity infrastructure to universities and teaching hospitals.
He said the REA had already completed power projects in 15 universities across the country, including installations that supply electricity to campuses, hospitals and water treatment facilities.
In addition, he revealed that President Bola Tinubu had approved N100 billion for the National Public Sector Solarisation Initiative, which targets government institutions struggling with electricity access or high energy costs.
Aliyu assured Adejumo that the Institute would be considered for inclusion in the programme, explaining that the agency is currently conducting an energy audit to determine the appropriate mini-grid capacity required for its priority projects.
Aliyu expressed appreciation for Adejumo’s contributions to Nigeria’s judicial system and pledged continued collaboration to improve electricity access across the country.
He maintained that the ongoing renewable energy projects marked a turning point in Nigeria’s efforts to resolve its longstanding electricity challenges and expand power supply to underserved communities.