KEY POINTS
- The Rural Electrification Agency (REA) and the Nigerian Communications Commission (NCC) are planning pilot projects to power rural telecom base stations with electricity from mini-grids.
- More than 11,000 rural base stations reportedly rely on power sources associated with significant diesel consumption, with the telecom sector estimated to use over 40 million litres of diesel annually.
- The REA says its $750 million DARES programme targets 1,350 mini-grids and aims to provide new electricity access to 17.5 million Nigerians.
MAIN STORY
The Rural Electrification Agency (REA) and the Nigerian Communications Commission (NCC) are planning joint pilot projects to integrate rural electricity infrastructure with telecommunications networks, in a move aimed at reducing diesel costs and improving connectivity in underserved communities.
REA Managing Director, Dr Abba Aliyu, represented by the agency’s Executive Director, Technical, Umar A. Umar, disclosed this at the second Rural Connect 2.0 Summit in Lagos on Tuesday.
Aliyu said the agencies had established a joint committee to identify locations where rural mini-grids could supply electricity to mobile network operators’ base stations.
He said the REA and NCC signed a memorandum of understanding in July 2026 to strengthen cooperation on rural electrification and telecommunications infrastructure.
According to Aliyu, three subcommittees have assessed potential business models, funding options, technical standards and capacity-building requirements for the proposed initiative.
“The next phase would involve joint physical audits of shortlisted sites, engagement with telecom operators and mini-grid developers, and validation of the proposed business models using operational data,” he said.
Aliyu put Nigeria’s household electrification rate at approximately 60 per cent and said more than 11,000 rural base stations relied on power sources that contributed to substantial diesel consumption.
“The telecom sector was estimated to consume more than 40 million litres of diesel annually to power many rural base stations,” he said.
Integrating telecom infrastructure with renewable energy systems could lower operating expenses for network operators while improving electricity reliability and expanding digital access, he added.
The REA representative also outlined the agency’s existing efforts to extend electricity access through mini-grids and solar home systems.
He said the Nigeria Electrification Project had supported 380 grant agreements with developers, leading to the commissioning of more than 150 hybrid solar mini-grids and the deployment of approximately 1.45 million solar home systems.
Aliyu further highlighted the $750 million Distributed Access through Renewable Energy Scale-up (DARES) programme, which targets 1,350 mini-grids, including 250 interconnected systems. The programme is expected to provide new electricity access to approximately 17.5 million Nigerians.
He said the National Electricity Strategy and Implementation Plan targets universal electricity access by 2030, requiring an estimated $23 billion investment to connect 22 million households.
Earlier, Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), urged stakeholders to measure rural connectivity by actual usage and benefits to communities rather than network coverage alone.
Emoekpere said connecting schools, primary healthcare centres, local governments and agricultural cooperatives to shared networks could create a more sustainable revenue base for rural telecommunications infrastructure.
He called for connectivity planning to be incorporated into mini-grid projects from the outset, arguing that shared infrastructure could reduce costs and widen access to electricity and digital services.
He also urged greater support for local internet service providers and community-based operators, saying they were better positioned to understand the needs of underserved populations.
Emoekpere added that governments and development partners needed to support rural connectivity because private investors might be reluctant to serve communities with limited commercial returns.
In his welcome address, Omobayo Azeez, convener of the summit, described rural connectivity as important to economic opportunities, education, healthcare, financial inclusion, agriculture and public services.
Azeez said the summit sought to strengthen partnerships between government and industry to connect Nigeria’s next 25 million internet users.
The second edition of Rural Connect 2.0, organised by Business Metrics, was held under the theme, “Rural Connectivity at Scale”.
THE ISSUES
Electricity and telecommunications infrastructure face related challenges in rural Nigeria. Unreliable power increases the cost of operating mobile base stations, while limited connectivity restricts access to digital services for households, businesses and public institutions.
The proposed pilot projects seek to address both problems by allowing mini-grids to supply electricity to telecom infrastructure. If the model proves commercially viable, it could reduce operators’ dependence on diesel generators and provide mini-grid developers with additional customers to support their businesses.
However, the projects’ impact will depend on the cost of supplying power, the reliability of the mini-grids, agreements with telecom operators and the ability of the model to generate sufficient revenue. The planned site audits and business-model assessments will help determine whether the approach can be replicated across more communities.
The wider economic opportunity extends beyond mobile network coverage. Reliable electricity and connectivity can support digital payments, agricultural information, remote learning, healthcare services and small businesses. But these benefits will depend on whether residents and local institutions can afford and use the services provided.
WHAT’S BEING SAID
- “The next phase would involve joint physical audits of shortlisted sites, engagement with telecom operators and mini-grid developers, and validation of the proposed business models using operational data.” – Abba Aliyu, REA Managing Director, as represented at the summit
- “The telecom sector was estimated to consume more than 40 million litres of diesel annually to power many rural base stations.” – Abba Aliyu, REA Managing Director, as represented at the summit
WHAT’S NEXT
The immediate next steps are joint physical audits of shortlisted locations, consultations with telecom operators and mini-grid developers, and validation of proposed commercial models using operational data.
The findings should establish which locations are suitable for the pilot projects, how electricity supply will be priced and funded, and what technical arrangements are needed to keep base stations running reliably.
The results will also indicate whether the approach can be expanded to other underserved communities and incorporated into future rural electrification projects.
BOTTOM LINE
The REA and NCC are seeking to turn rural mini-grids into a source of power for telecommunications infrastructure, potentially lowering diesel expenses while improving digital access. The key test will be whether the proposed model can deliver reliable electricity at a cost that works for both mini-grid developers and telecom operators.
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