19 states to gain stable electricity as FG launches 48 mini-grid projects
By Aboki Forex —
The Rural Electrification Agency (REA) has started building 48 interconnected mini-grid projects across 19 states, aiming to deliver more than 252,000 electricity connections and add 213.3 MWp of solar power capacity with battery storage. The projects are being developed under the Nigerian Electricity Regulatory Commission's (NERC) new interconnected mini-grid (IMG) regulations, which allow significantly larger renewable energy systems than before.
New regulations raise mini-grid capacity limits
Abba Aliyu, managing director of the REA, disclosed this on Thursday, July 23, 2026, in Abuja while hosting a benchmarking delegation from the Zanzibar Utilities Regulatory Authority (ZURA). Aliyu explained that the revised framework has transformed Nigeria's off-grid electricity market by increasing the maximum capacity of interconnected mini-grids from one megawatt to 10 megawatts. Isolated mini-grids can now generate up to five megawatts.
“The mini-grid regulations last year had a cap of one megawatt. We couldn’t build a mini-grid above one megawatt. What we showed the regulator - the economics and the technical data led to a change in the regulation. Now we can build interconnected mini-grids of up to 10 megawatts and isolated mini-grids of up to five megawatts,” Aliyu said. He noted that the changes followed extensive technical and economic engagements with the electricity regulator.
252,505 connections and 213.3 MWp solar capacity
The 48 projects are spread across the franchise areas of 10 electricity distribution companies (DisCos). Aliyu said the ongoing projects are expected to provide 252,505 new and improved electricity connections nationwide. The programme will deploy 213.3 megawatt-peak (MWp) of solar photovoltaic generation capacity, supported by 166.1 megawatt-hours (MWh) of battery storage and 82.5 megawatts of peak load capacity.
Aliyu added that Nigeria's renewable energy industry has evolved significantly. Local companies are moving beyond contract execution to become project developers and utility-scale energy operators. The agency now works with more than 150 renewable energy service companies (RESCOs). Some of these companies manage renewable energy portfolios of about 30 megawatts and are expanding operations beyond Nigeria.
Technology-driven planning and nationwide database
The REA has adopted a technology-driven planning approach by creating a nationwide database that supports rural electrification decisions. The mapping exercise covers more than 700,000 communities, over 51,000 health facilities, 11,129 markets, 170 schools, 7,979 factories, 407 operational mini-grids, 57 dams and 2,194 electricity distribution feeders.
Aliyu explained that the database enables the agency to determine the most cost-effective electricity solution for each location. Options include national grid extension, interconnected mini-grids, isolated mini-grids or standalone solar home systems. The extensive data provides a clear roadmap for planning and prioritising electrification projects, ensuring investments go where they will have the greatest impact.
What this means for the naira and Nigerian businesses
More stable electricity across 19 states should reduce reliance on expensive diesel and petrol generators, cutting operating costs for small and medium businesses. Improved power supply also supports local manufacturing and agro-processing, which can boost domestic production and reduce pressure on the naira by lowering import bills for generator parts and fuel. For consumers, the addition of 213 MWp of solar capacity means more households and communities can access reliable, cleaner energy without waiting for grid expansion.