The Rural Electrification Agency (REA) has disclosed that many rural communities across Nigeria are now enjoying stable electricity supply through mini-grid projects, but some residents are paying higher tariffs than customers on Band A.
Managing Director of REA, Abba Aliyu, explained this during an interview on Channels Television’s The Morning Brief programme on Monday. He stated that the electricity model deployed in rural areas had not only provided reliable power but also showed the readiness of rural dwellers to pay for electricity.
According to Aliyu, some rural communities are paying as much as N250 to N280 per kilowatt-hour, which is significantly higher than what customers on Band A are billed. Band A customers are those who enjoy at least 20 hours of electricity daily under the Nigerian Electricity Regulatory Commission (NERC) tariff classification.
“There are communities, there are rural areas that pay more tariffs than Band A customers. There are areas where the tariff is close to N250 and N280,” he said.
He explained that the cost of electricity in rural communities depends on the total cost of infrastructure deployed by the agency and its private partners. In some places, the tariff is cheaper than Band A, while in others, it is higher.
“They pay for their electricity and they enjoy it, but there are other areas where the tariff is less than Band A. It’s subjective on the total cost of infrastructure we deploy within those communities,” he added.
The REA boss said the mini-grid system has brought remarkable improvement in the lives of rural dwellers, particularly in places where the national grid could not reach. He described solar energy as one of the most practical and sustainable models for rural electrification.
Aliyu revealed that the agency has completed several mini-grids and interconnected mini-grids across Nigeria’s six geopolitical zones. These projects include facilities for universities, general hospitals, and other critical service points in underserved areas.
He stressed that the REA’s work shows that rural dwellers are willing to pay for electricity once there is steady supply. “What is most important is reliability. Many of these communities prefer paying more for constant power than relying on generators or living in darkness,” he noted.
The initiative is part of the Federal Government’s push to expand access to electricity and reduce dependence on fossil fuels. With the deployment of solar-powered mini-grids, more remote areas now have opportunities for small businesses to thrive, health centres to operate efficiently, and schools to provide better learning environments.
The agency also emphasised that electrification of rural communities is vital for economic growth, job creation, and poverty reduction. By powering productive activities such as milling, cold storage, and irrigation, the mini-grids are helping communities become more self-reliant.
REA has in recent years worked with private developers under its Rural Electrification Fund and performance-based grant programmes to deliver these projects. Aliyu assured that more communities would be reached as the agency continues to scale its operations.
He also urged Nigerians to understand the cost structure of mini-grids, noting that unlike the national grid, these projects require huge upfront investment in solar panels, batteries, and distribution lines. “The tariffs reflect the reality of providing quality and uninterrupted service to rural households and businesses,” he said.
As Nigeria continues to struggle with unstable electricity supply in urban areas, the REA model offers a potential solution for ensuring reliable power in hard-to-reach locations. Experts believe that with more investment and government support, mini-grids could become a central part of Nigeria’s energy future.
