The federal government of Nigeria has indicated that mini-grid solar power is gaining traction among investors. Abba Aliyu, the Managing Director of the Rural Electrification Agency, stated in Lagos on Friday that these solar installations have emerged as a practical business model for distributing power.
Aliyu emphasized that solar energy provides a path to reduce risks within the national power sector, effectively drawing in substantial private investment. He suggested that meaningful change requires moving away from state-funded subsidies that cover systemic failures and toward increasing the role of the private sector.
Furthermore, Aliyu mentioned that recent federal solar projects have contributed to reducing the 14 billion dollars that Nigerian companies previously spent each year on private power generation. He clarified that mini-grids should be seen as a strategic commercial enterprise rather than just basic rural electricity programs.
