News

April 29, 2025

REA signs deal with firms to supply electricity to 1.611m homes, businesses

By Obas Esiedesa, Abuja

The Rural Electrification Agency (REA) on Monday signed performance based grant agreements with nine companies to supply electricity through 11,027 connections and 1.6 million solar home systems to homes and businesses across the country.

The agreements which are the first under the World Bank funded Distributed Access through Renewable Energy Scale-Up (DARES) Project since its official launch in 2024, is a crucial step in Nigeria’s commitment to electrifying unserved and underserved communities, driving economic growth, and improving the quality of life for millions.

Under the DARES Project, the Federal Government is hoping to provide electricity to 17.5 million Nigerians using renewable energy technologies.

The DARES Project which is a $750 million initiative funded by the World Bank is expected to see the deployment of 1,295 mini-grids, 1,710 isolated and interconnected mini-grids, also attracts $613 million in private capital investments.

Under the Performance-Based Grant sub-component for isolated mini-grids, Privida Power Limited secured grant to deploy 2.47 megawatts of solar mini-grids across eleven communities in Kogi State, providing over 11,027 new connections.
In addition, eight companies under the Standalone Solar Systems component, including Baobab Plus, Salpha Energy, Asolar, NTA-StarTimes, A4&T, Sunking Greenlight Planet, Bboxx and D.Light — signed agreements to roll out tier 1 & 2 plug and play solutions to households and MSMEs to increase energy access to rural Nigeria.

Speaking during the signing ceremony, the Managing Director, Rural Electrification Agency, Engr Abba Abubakar Aliyu said signing of the first batch of grants agreement is a major milestone in Nigeria’s quest to provide electricity to about 80 million Nigerians without access to electricity.

He explained that the government aims to provide 125 interconnected mini-grids to “enhance the reliability of electricity for the customers that are on Band D and E. The isolated mini-grids will create access for communities that are without access in Nigeria”.

Aliyu disclosed 82 companies applied for the grant agreement under the DARES Project with nine companies submitting their sites.

“Total sites that have been submitted to date are 198 sites which will give us over 340,000 connections and a total of 47MW additional clean and reliable electricity that will be added to the total capacity in the country.

“For the solar home system, a total of 36 companies applied for this grant agreement out of which eight qualified for this grant signing. This will give additional deployment of 1.6 solar home system which more than the total solar home system we deployed under the Nigerian Electrification Project”, he added.

Earlier, the Head, Nigerian Electrification Programme, NEP, Mr. Olufemi Akinyelure emphasized the broader impact of the initiative, stating that “every connection made under DARES is more than a number — it is a doorway to education, healthcare, commerce, and inclusion. The 11,027 new connections we are announcing today represent lives transformed, futures energized, and a Nigeria that leaves no one behind. Partnerships like these are the blueprint for achieving our national energy access goals.”

Speaking after signing the agreement, the Managing Director, Privida Power Limited, Mr. William Akalumhe thanked the government for the opportunity to contribute towards providing electricity to unserved and underserved communities.

“We are not just closing the energy gap, we are also driving financial competition, we are also driving employment. So there are so many things that will happen with this landmark step that has been taken. We are committed to this”, he stated.