The Federal Government has said mini-grid solar energy is becoming increasingly attractive to investors, describing it as a sustainable and commercially viable solution to Nigeria’s electricity challenges.

Speaking in Lagos on Friday, the Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, said mini-grids have evolved beyond rural electrification projects into a profitable model for electricity generation and distribution.

According to Aliyu, solar energy has the potential to de-risk Nigeria’s power sector, making it more attractive to private investors while accelerating access to reliable electricity.

He stressed that meaningful reform of the country’s power sector would require a shift from using public funds to subsidise inefficiencies toward encouraging greater private sector participation.

Aliyu also noted that the Federal Government’s investment in solar energy initiatives has helped reduce the estimated $14 billion Nigerian businesses spend annually on self-generated electricity.

“Too often, mini-grids are viewed only as rural electrification initiatives,” he said.

“In reality, they represent a new commercial model for electricity delivery.”

He expressed confidence that expanding mini-grid projects would improve electricity access, stimulate investment, and support Nigeria’s transition to cleaner and more sustainable energy sources.