REA Plans 500 Power Projects in ₦170bn 2026 Budget to Expand Rural Electrification

Managing Director/Chief Executive Officer of the Rural Electrification Agency, Abba Aliyu

Nigeria’s Rural Electrification Agency (REA) has announced plans to deliver over 500 electrification projects under its proposed ₦170 billion 2026 budget, a major push to improve reliable power supply in rural communities and public institutions.

The agency’s Managing Director, Abba Aliyu, disclosed the plan during the 2026 budget defence session before the House Committee on Rural Electrification in Abuja.

According to him, ₦100 billion has already been approved for the National Public Sector Solarisation Initiative — a flagship programme aimed at reducing energy costs in government institutions through solar hybrid power systems.

Solar Power for Public Institutions

A significant portion of the 2026 allocation will fund solar mini-grids for Ministries, Departments and Agencies (MDAs) within and outside Abuja.

The initiative is designed to reduce dependence on the national grid and diesel generators.

Aliyu cited the National Hospital Abuja as a successful example, where solar-based infrastructure now ensures uninterrupted electricity while lowering operational expenses and improving service delivery.

Grid Extension, Mini-Grids and Solar Home Systems

The REA’s 2026 electrification strategy includes a mix of grid extension projects, renewable-powered mini-grids, and standalone solar home systems:

Grid Extension: Expansion of distribution lines and transformer installations in communities near existing infrastructure.

Mini-Grids: Renewable energy systems for agrarian communities, markets, and agricultural processing clusters to boost rural productivity and reduce post-harvest losses.

Solar Home Systems: Standalone solutions for remote, hard-to-reach settlements where grid connectivity is not viable.

Budget Performance and Oversight

Aliyu revealed that the agency achieved 85% budget implementation in 2024 and 32% performance so far in 2025, despite funding constraints.

House Committee Chairman, Mohammed Bukar, commended the agency’s compliance with procurement regulations and fiduciary safeguards, while pledging continued legislative oversight.

The REA remains central to Nigeria’s renewable energy transition, driving off-grid solar projects that reduce diesel reliance, lower energy costs, and accelerate economic growth in underserved regions.

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