The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, says several rural communities in Nigeria are paying electricity tariffs higher than those of Band A customers, but with the benefit of stable and reliable power supply.
Aliyu, explained that some rural areas under the REA framework pay as much as ₦250 to ₦280 per kilowatt hour, compared to the ₦225 tariff approved for Band A consumers by the Nigerian Electricity Regulatory Commission (NERC) in 2024.
“There are rural areas that pay more tariffs than Band A customers. They willingly pay because they enjoy stable power. But in some communities, the tariff is lower — it all depends on the total cost of infrastructure deployed,” he said.
According to him, the REA leverages solar mini-grids and interconnected mini-grids as a sustainable and cost-effective model to deliver electricity to underserved communities.
He revealed that the agency has already completed dozens of such projects for universities and general hospitals across Nigeria’s six geopolitical zones.
Nigeria, Africa’s most populous nation, has battled decades of chronic power shortages, with erratic electricity supply hampering productivity and economic growth.
Despite the privatisation of the power sector, generation, transmission, and distribution have continued to face persistent challenges, including policy inconsistencies, low investment, and weak infrastructure.
The 2024 tariff hike by NERC, which pushed electricity rates from ₦66 to ₦225 per kilowatt hour for Band A customers triggered widespread criticism amid rising inflation and economic hardship.
Consumers already burdened by soaring costs of petrol and diesel, which have increased nearly fivefold, have been left with limited alternatives.
For many rural Nigerians, however, the REA’s decentralised solar solutions are emerging as a lifeline, offering not just electricity but also hope for industrialisation, education, and improved healthcare delivery.
