- The FG plans to establish renewable energy companies to improve electricity supply
- The initiative will expand utility-scale solar mini-grids across underserved communities
- REA says cost-reflective tariffs are key to achieving stable power nationwide
The Federal Government has unveiled plans to establish Renewable Energy Service Companies (RESCOs) as part of efforts to expand electricity access and improve power supply across Nigeria.
The initiative, spearheaded by the Rural Electrification Agency (REA), is expected to create renewable energy providers capable of operating alongside existing electricity distribution companies over the next 10 to 15 years, Eko Hot Blog gathered.
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Managing Director of the REA, Abba Aliyu, disclosed the plan on Thursday during the Oriental News 2026 Conference in Ikeja, Lagos. He was represented at the event by the agency’s Executive Director of Corporate Services, Gboyega Ayoade.
Aliyu explained that the agency is shifting its focus from isolated mini-grid projects to larger utility-scale renewable energy systems capable of serving entire communities through interconnected solar-powered networks backed by battery storage.
According to him, the proposed RESCOs will provide consumers with reliable, round-the-clock electricity while offering an alternative to conventional distribution companies in areas with limited or no grid supply.
He said developers are now being encouraged to build multiple interconnected mini-grids across communities instead of operating single standalone projects.
Aliyu noted that many communities remain underserved because some electricity distribution companies consider them commercially unattractive, making renewable energy a practical solution for expanding electricity access.
He disclosed that agreements are already being signed between mini-grid developers and distribution companies in locations where conventional electricity services are unavailable or inadequate.
The REA boss added that renewable energy operators would also be permitted to construct their own electricity infrastructure, including transmission lines, subject to regulatory approval from the Nigerian Electricity Regulatory Commission (NERC).
Speaking on electricity pricing, Aliyu said achieving stable power supply would require consumers to embrace cost-reflective tariffs, arguing that the government could no longer sustain electricity subsidies.
He pointed to the improved electricity supply experienced by many Band A customers as evidence that higher tariffs can support better service delivery and expressed confidence that similar improvements could gradually be extended to other customer categories.
Aliyu also assured Nigerians that the agency maintains strict quality standards for solar panels and lithium batteries used in its projects. He said all equipment undergoes rigorous testing, while the Standards Organisation of Nigeria monitors imported components to ensure compliance with safety requirements.
He added that the agency is developing battery recycling and disposal systems to minimise environmental risks as the country expands its adoption of renewable energy.
Meanwhile, Publisher of Oriental News Nigeria Online, Yemisi Izuora, stressed the need to balance economic development with environmental protection, noting that responsible management of natural resources is essential for sustainable growth.
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