The Managing Director of the Rural Electrification Agency, Abba Aliyu, has revealed that rural communities in Nigeria are experiencing stable electricity supply and are willing to pay for it, with some communities paying tariffs higher than those in Band A. According to Aliyu, the tariff paid by rural communities is subjective and depends on the total cost of infrastructure deployed by the agency, with some areas paying close to N250 and N280 per kilowatt hour.
Aliyu made this statement on Channels Television’s program, The Morning Brief, where he also discussed the agency’s efforts to provide electricity to rural areas through solar energy. He noted that the agency has completed numerous mini-grids and interconnected mini-grids for universities and general hospitals across the country’s six geopolitical zones.
Nigeria has long struggled with energy challenges, including an unreliable power supply, which has significantly impacted productivity levels. Despite the privatization of the electricity sector, the industry continues to face challenges such as policy inconsistency, low investments, and operational difficulties. In 2024, the Nigerian Electricity Regulatory Commission approved an increase in electricity prices, which saw customers paying N225 kilowatt per hour, up from N66.
The increase in electricity tariffs has been met with criticism, particularly given the current economic hardship in the country. The cost of alternative energy sources, such as petrol and diesel, has also increased significantly, compounding the difficulties faced by consumers. The Rural Electrification Agency’s efforts to provide stable electricity to rural communities are a step towards addressing the country’s energy challenges.
The agency’s use of solar energy as a viable model for power generation is also noteworthy, as it offers a potential solution to the country’s energy needs. As Nigeria continues to grapple with its energy challenges, the success of the Rural Electrification Agency’s initiatives will be crucial in providing electricity to rural communities and improving the overall energy landscape in the country. With the agency’s efforts to expand access to electricity, Nigerians can expect to see improvements in the reliability and affordability of power supply, which will have a positive impact on the country’s economy and productivity.
