Nigeria will require an estimated $23 billion to bridge electricity access gaps across the country’s underserved and unserved communities, the Rural Electrification Agency (REA) has revealed, highlighting the magnitude of the nation’s power deficit and the urgency of expanding clean energy solutions.
The Managing Director and Chief Executive Officer of the REA, Abba Aliyu, disclosed this in Abuja during the switch-on ceremony of Phase 1 of the Greening of the UN House Solar Project, an initiative designed to reduce energy costs and promote renewable power use at the United Nations complex.
Aliyu explained that the estimate followed a comprehensive nationwide mapping exercise conducted by the agency, which identified about 143,000 communities across Nigeria with varying levels of electricity access.
According to him, while some communities are already fully electrified, many remain underserved, and a significant number still have no access to electricity at all.
The mapping exercise, he said, covers Nigeria’s diverse demographic and geographic landscape, ranging from large urban settlements with over 2.5 million households in Lagos State to remote communities with as few as two households.
By combining technical mapping data with cost modelling, the REA concluded that $23 billion represents the least-cost pathway to expanding electricity supply in underserved areas while connecting communities currently without power.
Aliyu stressed that the figure should not be viewed as a theoretical estimate but rather as a clear indication of the scale of investment required if Nigeria is to achieve universal electricity access while advancing its clean energy transition.
UN House Solar Project
Speaking at the event, the United Nations Resident and Humanitarian Coordinator in Nigeria, Mohammed Fall, described the solarisation of the UN House complex as both symbolic and strategic.
The installation consists of a 400-kilowatt peak solar photovoltaic microgrid, which can be expanded to 700 kilowatts, supported by 650 kilowatt-hours of lithium-ion battery storage.
Fall said the system is expected to reduce electricity costs at the UN complex by about 40 per cent annually.
Prior to the solar upgrade, the UN House spent between ₦432 million and ₦540 million annually on electricity. With the new system operational, annual savings are projected to range between ₦173 million and ₦216 million.
In addition, the project will cut nearly one million kilowatt-hours of grid electricity consumption annually and reduce carbon emissions by about 300 tonnes each year.
Electricity Key to National Development
Meanwhile, a former President of the National Industrial Court of Nigeria (NICN) and Administrator of the National Judicial Institute (NJI), Justice Babatunde Adejumo (rtd), has described electricity shortage as Nigeria’s most pressing development challenge.
During a visit to the REA headquarters in Abuja, Adejumo said sectors such as economic growth, healthcare, education and security cannot function effectively without reliable electricity supply.
“The number one problem of Nigeria is power,” the retired jurist said, noting that millions of small businesses — including barbers, hairdressers and tailors — rely heavily on electricity for daily operations.
He argued that thriving economies across the world are largely driven by private sector productivity, which depends significantly on stable infrastructure, especially electricity.
“In many developed countries, the number of civil servants is small. It is the private-sector-driven economy that sustains national growth,” Adejumo said.
Drawing comparisons with China and India, he explained that automated manufacturing systems in those economies rely entirely on stable and uninterrupted electricity supply.
“In those countries, production processes are automated. You simply input raw materials and the system works — but that is because electricity is stable,” he said.
Despite the challenges facing Nigeria’s power sector, Adejumo expressed optimism that the country is gradually making progress.
“We are getting there. We are getting to that tunnel and we are seeing the end of the tunnel. Light will come,” he added.
Call for Broader Rural Electrification
The former NICN President also called for a broader definition of rural communities in Nigeria, arguing that areas without basic infrastructure such as electricity and water should be considered rural, regardless of their location.
“Rural does not mean the bush. A city without light and water is a rural area,” he said.
He urged the REA to extend its electrification initiatives to such underserved communities and also support electricity supply to the National Judicial Institute, which serves as the training and research arm of Nigeria’s judiciary.
According to Adejumo, the institute — established in 1992 — trains about 1,500 judges annually and currently hosts nearly 900 residents across more than 300 buildings, including training facilities and a hospital equipped with modern medical equipment.
However, he warned that the efficiency of these facilities depends largely on stable electricity supply, particularly for operating sophisticated medical and digital equipment.
REA Expanding Renewable Energy Projects
Responding, REA Managing Director Abba Aliyu said the federal government is currently implementing one of the most ambitious electricity access programmes in Nigeria’s history.
He disclosed that the government is rolling out what he described as the world’s largest publicly funded renewable energy electrification initiative, supported by $750 million in public funding and expected to attract an additional $1.1 billion in private sector investment.
The initiative will support the deployment of about 1,350 mini-grids nationwide, including 250 interconnected systems designed to serve underserved communities.
Aliyu also highlighted progress under the Energising Education Programme (EEP), which provides solar-powered electricity infrastructure to universities and teaching hospitals.
According to him, the REA has already completed electrification projects in 15 universities across Nigeria, delivering reliable electricity to campuses, hospitals and water treatment facilities.
In addition, he disclosed that President Bola Tinubu has approved ₦100 billion for the National Public Sector Solarisation Initiative, which targets government institutions struggling with electricity supply or high energy costs.
Aliyu assured Adejumo that the National Judicial Institute would be considered for inclusion in the programme, noting that the agency is currently conducting energy audits to determine the appropriate mini-grid capacity for priority institutions.
He emphasised that Nigeria’s expanding renewable energy programmes represent a major turning point in efforts to tackle the country’s long-standing electricity challenges.
According to him, the REA remains committed to working with stakeholders and investors to expand power access, drive economic development and improve living standards in underserved communities across the country.