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Rural Electrification Agency Allocates ₦170bn for 500 Projects in 2026

The Rural Electrification Agency (REA) has announced a ₦170 billion budget aimed at implementing over 500 electrification projects in 2026 to improve access to renewable and off-grid energy across Nigeria. The projects will focus on expanding the power grid and providing mini-grids and solar home systems to underserved areas.

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Electricity ProjectsNigeriaRenewable EnergyRural Electrification

The Rural Electrification Agency (REA) has put forward a financial plan of ₦170 billion for the year 2026, intending to execute more than 500 electrification initiatives aimed at enhancing access to off-grid and renewable electricity throughout Nigeria.

During a press briefing on Friday, Abba Aliyu, the Managing Director of REA, provided details of the plan following the agency's budget defense session with the House Committee on Rural Electrification in Abuja.

At the core of the proposal lies a significant allocation of ₦100 billion designated for the National Public Sector Solarisation Initiative, which focuses on supplying energy to government establishments using hybrid and renewable power systems.

Aliyu noted that this program would focus primarily on various Ministries, Departments, and Agencies, employing hybrid mini-grids to lessen dependence on the national grid and mitigate increasing electricity expenses in public institutions.

He highlighted the National Hospital in Abuja as an exemplary model, where solar installations have successfully maintained a consistent power supply while significantly reducing operational energy costs.

Managing Director of the Rural Electrification Agency, Abba Aliyu, alongside his team.

The strategic plan for 2026 is designed to address the specific needs of communities. According to Aliyu, areas adjacent to existing distribution networks will see grid extensions, with plans to lay new power lines and install transformers for household and business connections.

For agricultural communities and small-scale industry zones, Aliyu confirmed that the deployment of renewable-powered mini-grids is anticipated, which could help in boosting economic activities and cutting down post-harvest losses in sectors reliant on stable electricity.

In remote and sparsely populated regions where extending the grid is impractical, REA aims to implement standalone solar home systems to ensure basic electricity access.

"Our detailed presentation to the National Assembly includes comprehensive plans for over 500 projects set for initiation in 2026," Aliyu explained, emphasizing that these initiatives are targeted at bridging existing access gaps and bolstering rural enterprises.

Implementation Performance and Funding Challenges

On the agency's performance, Aliyu stated that in 2024, REA achieved a project execution rate of 85 percent. However, he pointed out funding challenges in 2025, with current year performance dipping to 32 percent due to insufficient fund releases.

Optimistically, he mentioned that progress could pick up momentum once additional funding is provided.

Committee’s Backing and Oversight Commitment

Mohammed Bukar, the Chairman of the House Committee on Rural Electrification, expressed contentment with the insights and documents presented by the agency after careful examination.

Bukar acknowledged the REA’s adherence to procurement protocols and its transparency in efforts to extend off-grid and renewable energy access in rural localities and federal institutions.

He pledged the committee's commitment to conducting oversight visits to ensure that project implementations align with set objectives.

"Legislative oversight is imperative for accountability, and we will ensure that REA remains aligned with its designated goals and the country’s development priorities," he stated, while encouraging the agency to maintain its progress as Nigeria works toward improving rural electrification and transitioning to more sustainable energy sources.

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