Key Points
- Energy stakeholders call for decentralised electricity systems to address Nigeria’s rural power gap.
- Solar-hybrid mini-grids and performance-based subsidies proposed for underserved communities.
- Productive-use projects could create electricity demand while raising rural incomes.
Main Story
Energy stakeholders have called for greater use of decentralised electricity systems and income-generating energy projects to expand access to power in underserved rural communities across Nigeria.
The stakeholders, Mosho Adekunle, an energy policy analyst, and Dr Diana Nwajei, a development economist, made the recommendations in separate interviews with the News Agency of Nigeria (NAN) in Abuja.
Adekunle said conventional grid expansion remained costly in sparsely populated communities and should be complemented by interconnected solar-hybrid mini-grids.
He proposed deploying the mini-grids in areas served by underperforming electricity distribution companies, allowing operators to make use of existing infrastructure while improving supply reliability.
According to him, private operators could provide round-the-clock electricity under regulated, cost-reflective tariffs, while state-level electricity reforms could speed up licensing and deployment.
“Subnational regulation can drastically reduce administrative delays and allow states to independently map and develop underserved communities,” he said.
Adekunle also called for digital, performance-based subsidy systems under which government and development funds would be released after electricity connections had been verified.
He said the approach could help agencies such as the Rural Electrification Agency (REA) reduce abandoned or “ghost” projects and improve the impact of public investment.
Nwajei, however, said expanding electricity access would be more sustainable if power supply was connected directly to economic activities capable of generating income.
She recommended productive-use energy projects such as solar-powered cold storage, grain mills, irrigation systems and electric mobility to create consistent demand for electricity from mini-grid operators.
According to her, integrating electricity into rural value chains could improve agricultural productivity, reduce post-harvest losses and increase household incomes.
The Issues
Nigeria’s rural electrification challenge is not only about connecting communities to power but also about making electricity systems financially sustainable.
Linking electricity supply to businesses, farming and other productive activities can create regular demand and provide users with income to pay for services. Decentralised systems could also provide an alternative where extending the conventional grid is economically difficult.
What’s Being Said
“Electrification becomes more sustainable when communities can use power to produce, earn income and pay for continued service.” – Dr Diana Nwajei, development economist.
“Subnational regulation can drastically reduce administrative delays and allow states to independently map and develop underserved communities.” – Mosho Adekunle, energy policy analyst.
What’s Next
Nwajei recommended Pay-As-You-Go systems, mobile-money platforms and smart meters to allow low-income households to pay incrementally according to their electricity consumption.
She also proposed community-owned micro-utilities, combining concessional financing with equity contributions from local cooperatives.
According to her, giving communities an ownership stake could strengthen commitment to electricity infrastructure, discourage vandalism and support long-term maintenance.
Bottom Line
Nigeria’s rural power gap may require a shift from grid expansion alone towards decentralised systems linked to productive economic activity. Stakeholders say stronger community participation, digital payments and performance-based financing could also improve the sustainability of rural electrification projects.
