At the just-concluded West African Energy Cooperation Summit in Accra, the Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, highlighted the key factors behind the success of the Nigeria Electrification Project (NEP).
He stated that supportive regulations and strong partnerships with the private sector were crucial to the agency’s achievements.
Mr Aliyu noted that REA is now regarded as one of the continent’s leading rural electrification agencies, particularly in off-grid deployment driven by private sector participation. According to him, the results recorded under NEP provided policymakers with the confidence to approve what has grown into the largest publicly funded renewable energy project globally.
He attributed the success to three pillars: regulation, private-sector engagement, and availability of reliable data.
“Firstly, the mini-grid regulation in Nigeria is among the best, and this feedback comes directly from the private sector,” he said. The flexibility of the regulation, clarity regarding grid arrival, tariff setting, and community engagement were all very clear. Regulation has been a major contributing factor.”
He added that result-based financing, performance-based grants, minimum subsidy tenders, and a simplified investment framework have encouraged developers and financiers to scale deployment across communities.
“Secondly, partnerships with the private sector, the result-based financing framework, performance-based grants, and the minimum subsidy tender framework are simple and efficient ways to encourage private sector investment and deployment of mini-grids.”
The third success factor, he explained, is access to data, which he said enables investors and funders to plan effectively.
“The availability of data has been crucial. Data helps the private sector make both long-term and short-term financing plans and enables financiers to structure funding effectively.”
He said the same principles are now driving the Distributed Access through Renewable Energy Scale-up (DARES) project, a $750 million World Bank-funded programme that aims to provide new or improved electricity supply to 17.5 million Nigerians.
“Our target with DARES is to electrify 17.5 million Nigerians. DARES may be the Nigerian World Bank project completed even before the planned five-year timeline.”
According to him, nearly $2 billion is expected to be mobilised over the next three years through private sector participation, prompting the search for additional funding.
“Based on current progress and private sector commitment, we anticipate that in three years, nearly $2 billion will be mobilised. That is why we have started sourcing additional financing. Essentially, this success is the result of extensive discussions with funders over almost 12 months before they access the grant.”
He noted that the agency’s design approach ensured access to multiple financing pools, giving developers better leverage in sourcing equipment.
“During project design, we ensured that we catalyse a funding pool for the private sector. Currently, we have about four different international and local financing options available. Not only did we design financing agreements, but we also developed financial solutions.”
Mr Aliyu cited an example where engagement with a financier backed by a Chinese bank enabled Nigerian developers to access Tier 1 PV manufacturers directly, at no extra cost.
“For example, one financier we engaged, backed by a Chinese bank, provided Tier 1 manufactured PV panels at no additional cost. We structured the agreement so that a local developer in Nigeria, once signed with this financier, can directly access Tier 1 manufacturers in China. The same approach was applied to logistics companies, reducing the time lag for developers to access financing. This has been one of the key innovations we achieved,” he said.
PREMIUM TIMES reports that REA previously focused on grid extension, but its mandate now prioritises off-grid interventions such as mini-grids and solar home systems.
In Accra, top government officials, innovators, policymakers, industry leaders and partners attended the Energy Summit, organised by Energy Net and hosted in collaboration with Ghana’s Ministry of Energy and Green Transition. The African Trade & Investment Development Insurance (ATIDI) participated as Lead Sponsor alongside Endeavour Energy and Denham Capital, reaffirming its commitment to sustainable energy growth across the region.
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The gathering convened leaders committed to shaping a resilient and sustainable energy future for West Africa and the continent.
Top government officials called for deeper regional cooperation to address electricity shortages, secure long-term energy supply, and unlock the economic potential of the sub-region.
Energy experts called for deeper collaboration between government institutions and private sector players to upgrade national grid systems and accelerate regional power integration across West Africa.
