Nigeria requires an estimated $23 billion to close electricity access gaps in underserved and unserved communities across the country, the Managing Director of the Rural Electrification Agency (REA), Abba Abubakar Aliyu, has said.
Aliyu disclosed the figure in Abuja during the switch-on ceremony of Phase 1 of the Greening of the UN House solar project, an initiative designed to demonstrate the role of renewable energy in advancing Nigeria’s drive toward universal electricity access.
According to him, a nationwide mapping exercise conducted by the REA identified about 143,000 communities with varying levels of electricity access. While some communities are fully electrified, many remain underserved and a large number still lack power entirely.
The assessment covered settlements across the country’s demographic spectrum—from densely populated urban areas with over 2.5 million households in Lagos State to remote locations with only a handful of homes. Each community was evaluated to determine the most cost-effective electrification solution, including grid extension, mini-grids or standalone solar systems.
By combining technical mapping with cost analysis, the agency concluded that $23 billion represents the least-cost pathway to expanding electricity supply in underserved areas and connecting communities currently without power.
The revelation underscores the scale of Nigeria’s electricity deficit at a time when reliable energy remains critical to economic growth, industrial productivity and social development. Across the country, businesses, hospitals, schools and households continue to grapple with unstable power supply and rising energy costs, often relying on expensive diesel generators.
Aliyu said the funding requirement highlights the scale of investment needed for Nigeria to achieve universal access while advancing its transition to cleaner energy sources.
The ceremony at the UN House also showcased a practical example of renewable energy deployment. 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 and supported by 650 kilowatt-hours of lithium-ion battery storage—is expected to reduce electricity costs at the UN House by about 40 per cent annually. The system incorporates artificial intelligence-driven energy management and Internet of Things monitoring technology for real-time performance tracking.
Before the upgrade, annual electricity costs at the UN complex ranged between N432 million and N540 million. With the solar system operational, projected yearly savings are estimated at N173 million to N216 million, while grid electricity consumption is expected to drop by nearly one million kilowatt-hours annually, alongside a reduction of about 300 tonnes in carbon emissions.
Fall said the project aligns with the global push for renewable energy championed by António Guterres, Secretary-General of the United Nations, noting that Nigeria’s abundant solar resources position the country favourably in the global clean energy transition.
Also speaking at the event, Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, said the project reflects reforms under the Electricity Act 2023 aimed at decentralising electricity generation, expanding renewable energy deployment and attracting private investment.
He noted that the solar installation—capable of meeting about 40 per cent of the UN House’s electricity demand during a typical workday—demonstrates that renewable energy solutions are now both economically viable and scalable.
Beyond powering a major international complex with solar energy, the event highlighted the broader national challenge of mobilising billions of dollars in public and private financing to bring electricity to thousands of communities still without access.
For Nigeria, the $23 billion estimate reflects not only the scale of the challenge but also the investment required to unlock economic opportunities, strengthen public services and drive a sustainable energy transition.
