Nigeria faces a $23 billion access-to-power gap as…TheConclaveNg

Nigeria will need about $23 billion to close the electricity gap in underserved and underserved communities nationwide, a revelation that underlines both the scale of the country’s energy deficit and the urgency of accelerating its transition to clean energy.

The Chief Executive Officer of the Rural Electrification Agency (REA), Abba Abubakar Aliyu, disclosed the figure in Abuja during the switch-on ceremony of Phase 1 of the Greening of the UN House solar project, an event which also served as a demonstration of how renewable energy could fuel Nigeria’s march towards universal access.

Aliyu said a global mapping exercise conducted by the agency identified around 143,000 communities at various levels of electricity access.

While some are fully electrified, many remain underserved and a significant number have no access at all.

The mapping, he explained, spans Nigeria’s demographic spectrum: from vast urban centers with more than 2.5 million families in Lagos state to remote settlements with just two families. Each community was evaluated to determine the most cost-effective electrification option, whether through grid extension, mini-grids or stand-alone solar systems.

By overlaying technical data with cost analysis, the REA concluded that $23 billion represents the least-cost path to strengthening supply in underserved areas and connecting those without electricity.

The disclosure lays bare the scale of Nigeria’s electricity challenge at a time when reliable electricity remains critical to economic growth, industrial productivity and social development. Businesses, hospitals, schools and families across the country continue to grapple with erratic supplies and high energy costs, often resorting to expensive alternatives to diesel.

Aliyu described the funding requirement not as an abstract figure but as a clear sign of the work that needs to be done if Nigeria is to achieve universal access to electricity while pursuing a cleaner energy future.

The ceremony at the United Nations Chamber offered a practical example of what this transition could look like. The UN Resident and Humanitarian Coordinator in Nigeria, Mohammed Fall, described the solarisation of the complex as symbolic and strategic.

He said the installation – a 400-kilowatt peak solar photovoltaic microgrid expandable to 700 kilowatts, supported by 650 kilowatt-hours of lithium-ion batteries – would reduce electricity costs by about 40% a year. The system also incorporates AI-based smart energy management and Internet of Things monitoring technology, enabling real-time performance monitoring.

Before the solar upgrade, electricity costs at the United Nations House ranged between N432 million and N540 million per annum. With the new system in place, annual savings of between 173 and 216 million naira are expected, along with a nearly one million kilowatt-hour reduction in grid electricity consumption each year and an estimated 300 metric tons reduction in carbon emissions.

Fall said the initiative reflects the global shift towards renewable energy championed by United Nations Secretary-General António Guterres, noting that Nigeria’s abundant sunshine positions it advantageously in the clean energy race.

Also speaking, Permanent Secretary of the Federal Ministry of Energy, Mahmuda Mamman, said the project is in line with the reforms under the Electricity Act 2023, which aim to decentralize the power sector, expand the deployment of renewable energy and attract private sector investment.

He described the solar plant – capable of meeting around 40% of the UN House’s electricity demand during a typical working day – as proof that renewable energy is no longer aspirational but is economically feasible and scalable.

Beyond the symbolism of powering an international complex with sunlight, the event highlighted a deeper national imperative: mobilizing billions of dollars in public and private funding to illuminate thousands of communities still in the dark.

For Nigeria, the $23 billion figure is more than a cost estimate: it is a clear measure of the infrastructure gap that must be closed to unlock economic opportunities, strengthen social services and anchor a sustainable energy transition.

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