MD/CEO, Rural Electrification Agency, REA, Mr. Abba Aliyu
The entire Hall of Radisson Blu, Ikeja GRA, Lagos was last week Thursday literally electrified when the Managing Director/CEO of Rural Electrification Agency, REA, Abba Aliyu delivered a powerful paper to properly address the conference theme: “Integrating Nigeria’s Gas Potentials Into Strategic Energy Transition Initiatives”.
Mr. Aliyu who was represented at the Conference by Mr. Japheth Ailenataman, Director Planning, Research & Development in the Agency was also honored with an Award.
Mr. Japheth Ailenataman(middle) receiving Award on behalf of MD/CEO, Rural Electrification Agency, REA, Mr. Abba Aliyu,(represented). He is flanked by presenter of the Award(l) and publisher, Oriental News Nigeria, Mrs Yemisi Izuora(r)In reading a citation on Abba Aliyu at the event, he was described as a leading figure in advancing Nigeria’s rural and off-grid energy access. With over two decades in energy policy. The citation further noted that Mr. Abba currently implements the Rural Electrification Fund (REF), REA Capital Projects, adding that he was instrumental in the international collaborations of the $200M AfDB NEP and the $350M World Bank REA executed NEP, securing the current $750M for the Distributed Access through Renewable Energy Scaleup (DARES) project—the largest off-grid program globally. This pivotal project focuses on increasing energy access through the deployment of both isolated and interconnected mini-grids, alongside standalone solar power solutions, including equipment for productive use. Mr. Aliyu also champions innovative renewable energy models like RESCOs and is currently leading the development of the National Electrification Strategy and Implementation Plan (NESIP). This strategy, the citation opined, aims to define national energy access, harmonize data, streamline financing, and guide REA’s subnational engagement under the Electricity Act 2023. Abba’s leadership is positioning REA as a catalyst for sustainable energy access across Nigeria”, the citation concluded.
Meanwhile, NEW SENTINEL Online News Media hereby reproduces the complete powerfully loaded paper as written by Mr. Abba Aliyu; excerpt:
We in the Rural Electrification Agency (REA) uniquely align with
Nigeria’s energy transition journey by the dual imperatives of
achieving universal access and ensuring long-term energy security.
This conference is particularly timely considering the provisions of
Electricity Act 2023 which positioned REA to drive energy transition
through decentralized energy solutions while integrating gas-based
technologies that align with national and global low-carbon
development goals.
• The Electricity Act 2023 introduces transformative provisions that
decentralize the electricity sector and provide a clear regulatory
foundation for diverse energy sources, including gas-based
generation. While the act does not specifically mention the Rural
Electrification Agency (REA) by name in relation to gas, it creates
regulatory, operational, and financial enablers that empower REA to
integrate gas-based generation into rural electrification initiatives.
NIGERIA’S RURAL ELECTRIFICATION STATUS
• Approximately 55% National Electricity Access, with 34% in
rural areas (World Bank SE4ALL, 2023).
• Over 80 million Nigerians lack reliable electricity.
Bridging this require huge investment and adaptation of
technologies.
• Impact of REA Intervention so far:
• About 500 mini-grid projects commissioned through REA
various initiatives.
• Over 1.5 million connections, impacting about 8 million
Nigerians outside those impacted by our Grid extension
interventions in rural communities and underserved areas.
The Rural Electrification Fund
• Federal Government of Nigeria
(FGN)
• REF Call 1, Call 2 & IMAS
***
REA Capital Projects
• FGN Appropriation (National
Budget
***
• Grid Extension and Solar Projects
***
Energizing Economies Initiative (EEI)
• Private Sector, FGN & Rockefeller
• Powering High Growth Areas In The
Economy
***
National Power Sector Solarization
Initiative
(NPSSI)
• FGN Appropriation (National
Budget)
• Powering public institutions
***
Africa Mini-Grid Programme (AMP)
• GEF & UNDP
• Stimulating commercial investments
in Mini Grids
De-risking Sustainable Off-Grid Lighting
Systems (DSOLS)
• GEF & UNDP
• Promoting off-grid SHS to rural communities
Korean Energy Project (KEP)
• Government of Korea, in-kind grants
• Energy Management Centre and 4 Mini
Grids
***
Nigeria Electrification Project
• World Bank and AfDB
• Mini grids, SHS, PUE and Captive
power
***
Distributed Access through
Renewable Energy Scale-up (DARES)
• Commenced in Q4 2024, World Bank;
Scaling
up Solar Mini Grids and Stand-alone
Solar deployments
***
Energizing Agriculture Programme
(EAP)
• GEAPP & RMI
• Enabling Market-led Solutions to
Stimulate Agricultural Mini Grid PUE
E – H.E.A.R.T
• Initiative to electrify healthcare,
education, agriculture, rural
communities and transportation
Renewed Hope Infrastructure
Development Fund (RHIDF)
• Federal Government of Nigeria
• Standalone solar systems and PUE
***
The REA implements and coordinates various programmes to increase energy access through grid extension, solar hybrid
mini grids, interconnected solar mini grids, standalone solar systems, solar powered energy efficient productive use
equipment etc.
REGULATORY LANDSCAPE: NERC &
ELECTRICITY ACT 2023
Electricity act 2023 highlights:
• Empowerment of subnational regulation for electricity markets.
• Enhanced private sector participation.
• Encourages hybrid models, including gas-powered mini-grids.
NERC regulations impacting REA:
• Mini-grid regulation 2023
• Eligible customer regulation
• Embedded generation framework
Implications for REA:
• Greater flexibility in technology choices.
• Potential to integrate CNG/LNG in rural mini-grids where appropriate.
• Need for enhanced collaboration with state electricity markets.
ELECTRICITY ACT 2023 AS ENABLER – HYBRID
MODELS & GAS-POWERED MINI-GRIDS
• The act emphasizes technology neutrality. Gas qualifies under the act as A cleaner fossil fuel
and should be considered acceptable in meeting Nigeria’s energy access and transition goals.
• REA Hybrid Mini-grid project design support off-grid gas-powered systems in underserved
areas where such solutions are technically and economically feasible.
• The Electricity Act grants states the right to regulate electricity markets within their jurisdictions
for off-grid and embedded generation.
• This supports localized generation solutions, including gas-powered mini-grids in underserved
rural areas.
• These reforms lower barriers for Independent Power Producers (IPPS) and mini-grid
developers, including those utilizing gas technologies.
• Decentralization means REA must now actively engage with state electricity regulators and
discos where applicable, especially on licensing, tariffs, and safety standards for gas-based
systems and interconnected mini-grids.
OPPORTUNITIES
Solar – Gas based systems integration into REA’S DARES, EEP, or NEP programs
under embedded or hybrid system classifications offers great opportunities for
integrating Nigeria Gas potential for REA strategic interventions. This integration
offers opportunities to;
• Reduced emissions: Gas offers a cleaner alternative to diesel and petrol
generators currently used in remote areas or installed in minigrid projects to
maintain peak – thus contributing to Nigeria’s climate goals.
• Provide reliable backup power: gas-powered mini-grids can serve as
complementary backup systems to ensure reliability for hospitals, schools, and
productive users.
• Enables productive use of electricity: gas-hybrid systems are viable support
for small industries, Agro-processing clusters, and cold chains requiring stable
energy input.
• Enhance private sector participation: encourages independent power
producers (IPPs) and local developers to innovate around clean and efficient
modular gas technologies in mini-grid projects.
WAY FORWARD & INSTITUTIONAL COLLABORATION
Solar-Gas integration offers the way forward
• REA has demonstrated SOLAR hybrid mini-grids in economic hubs within underserved areas as a way
forward. The EEP projects & NEP Hybrid Mini-Grids are Strategic projects demonstration for this
initiatives.
• Develop technology guidelines: Establish technical and operational standards for hybrid solar-gas
systems under the REA framework in line with NERC’S regulations.
• Regulatory coordination: Strengthen collaboration with NERC and state-level regulators to streamline
licensing and compliance for hybrid systems. Foster regulatory clarity and incentives for mini gas-to-power
solutions.
• Investor pipeline expansion: Incentivize developers and financiers to enter the solar-gas hybrid space by
adapting REA’s Performance-based Grant (PBG) model to accommodate gas-based innovations.
Looking forward:
• Gas supply with comparative & economic reflective pricing can enhance its integration in some of the
initiatives in the pipeline such as the NPSSI – to power public institutions through embed solar-gas design.
• Mainstream gas in REA’s project design & financing templates.
• Encourage state-level REA’s to align with national energy transition priorities.
• Expand the gas-to-power working group within rea.
• Capacity building: Train internal REA teams and project developers on gas technologies, safety
protocols, and hybrid system integration.
ADAPTING RENEWABLE ENERGY & GAS STRATEGIES
• REA is aligning renewable energy policy frameworks with gas
utilization strategies to enhance rural energy access.
• REA already is promoting hybrid solutions that improve energy
reliability, drive economic growth in rural areas, and support Nigeria’s
broader energy transition. Integrating gas is no longer an option but a
neccessaity.
• These strategies also reduce dependency on fossil fuels in off-grid
systems while enabling productive use and sustainable development.
• Supports Nigeria’s broader energy transition goals.
SOLAR-GAS HYBRID – DEVELOPER’S COST
MODEL & BUSINESS EFFICIENCY
Dimension Solar-Gas Hybrid Fit
Reliability Provides 24/7 supply without costly
batteries
Economic Efficiency Lower LCOE by balancing solar
CAPEX and gas OPEX
Load Flexibility Supports productive and peak loads
Emission Profile Cleaner alternative to diesel-based
hybrids
Geographical Fit Ideal in areas near gas sources or
high-demand clusters
Scalability Allows flexible expansion with
consistent supply
CONCLUSION: COMMITMENT TO INTEGRATING GAS
INTO STRATEGIC TRANSITION INITIATIVES
REA affirms its commitment to:
• Ensure that rural electrification contributes to Nigeria’s ETP and netzero goals.
• Decentralized energy source for electrification model which include
solar-gas hybrid mini grid.
Earlier in a welcome address, the publisher of Oriental News Nigeria Online, Mrs Yemisi Izuora said the choice of the conference theme was considered germane and relevant to our national development. She disclosed that the Awardees and honorees were carefully chosen for their selfless dedication to hard work in the industry.
The Awardees included amongst others: Dangote, National Emergency Management Agency, NEMA, National Insurance Commission, NAICOM, Nigeria Customs Service, NCS, MEMMCOL, NCDMB and KAM Holding.
* Awardees and honorees present {front row} and some of the important dignitaries (back row) in a group photograph with publisher, Oriental News Nigeria, Mrs Yemisi Izuora(5th l-r front row).Also, Prof Barth Nnaji, Philip Mshebila, Dr. Sophia Horsfall, Engr. Chichi Emenike and Dr. Muda Yusuf were all given special recognition at the conference which attracted people from all walks of life.
