REA Budgets N170 Billion for 500 Power Projects in 2026.

By Victor Olabode

28 February 2026

As part of a N170 billion budget proposal, the Rural Electrification Agency has announced plans to carry out over 500 electrification projects in the 2026 fiscal year. This is intended to increase the availability of dependable power to public institutions and underserved rural communities nationwide.

This was revealed by the agency’s managing director, Abba Aliyu, who briefed reporters on Friday outside the House Committee on Rural Electrification’s 2026 budget defense session in Abuja.

According to Aliyu, N100 billion of the N170 billion agency’s proposed budget for 2026 has been approved for the National Public Sector Solarization Initiative, a flagship project aimed at supplying government institutions with affordable and sustainable electricity.

“N100 billion has been earmarked and approved for the National Public Sector Solarization Initiative – a flagship program designed to provide sustainable and affordable electricity to government institutions,” he declared.

He clarified that in order to lessen reliance on the national grid and lower energy costs in public facilities, the allocation will finance the installation of hybrid mini-grids for Ministries, Departments, and Agencies both inside and outside of Abuja.

The REA chief cited the National Hospital Abuja as an example, pointing out that solar-based infrastructure has already been put in place to guarantee a steady supply of electricity, greatly reducing operating costs while enhancing service quality.

Aliyu provided a summary of the suggested interventions, stating that the 2026 budget includes a variety of options catered to various communities’ energy requirements.

“A sizable portion of the projects entail grid extension to communities situated close to existing power infrastructure,” he continued.

“To connect homes and businesses to the national grid, the agency will install transformers and extend distribution lines.”

The agency intends to install mini-grids powered by renewable energy sources in agrarian settlements and communities with cottage industries in order to boost economic productivity. In order to improve value addition, lower post-harvest losses, and encourage the growth of rural enterprises, mini-grids are also designated for agricultural processing clusters.

The REA plans to install solar home systems in less populated and difficult-to-reach areas to supply households that cannot afford grid or mini-grid connectivity with standalone renewable electricity.

“We gave the National Assembly the detailed information about these over 500 projects that are expected to be completed in 2026,” Aliyu said.

The Managing Director revealed that the agency’s execution rate for the 2024 budget was 85%.

The agency has so far recorded 32% performance for the current fiscal year, he continued, despite low releases in 2025. He expressed hope that implementation would improve as more funds are released.

Mohammed Bukar, the chairman of the House Committee on Rural Electrification, previously stated that the committee was pleased with the agency’s submissions following careful examination.

Bukar stated that through off-grid and renewable energy interventions, the REA has made quantifiable strides in increasing access to electricity across rural communities, federal institutions, and public sector establishments across the country.

He emphasized that the committee would visit project sites for oversight while praising the agency’s adherence to development partner frameworks, fiduciary protections, and procurement laws.

“We will continue to make sure that the Rural Electrification Agency stays in line with its statutory mandate and national development priorities because legislative oversight is a crucial component of accountability.

“But for now, we are confident that the agency is carrying out its mandate and making a noticeable difference. As Nigeria moves closer to its goals for energy transition and rural electrification, we urge the agency to maintain this momentum,” Bukar stated.

According to reports, REA has become a major force behind Nigeria’s energy transition and rural electrification agenda in recent years, especially with regard to off-grid renewable energy solutions. The organization has carried out significant initiatives like the Energising Economies Initiative, which focuses on markets and small business clusters, and the Energising Education Program, which has provided solar hybrid power plants to federal universities and teaching hospitals.

Millions of Nigerians in previously underserved communities now have access to electricity thanks to the agency’s deployment of hundreds of mini-grids and solar home systems under the Nigeria Electrification Project, which was made possible through partnerships with development partners like the World Bank and the African Development Bank.

These initiatives have boosted economic activity in rural areas, reduced energy costs for public institutions and small businesses, and lessened dependency on diesel generators. A wider national trend toward decentralized renewable energy as a workable remedy for Nigeria’s ongoing power supply shortages, especially in off-grid and underserved areas, is reflected in the REA’s growing portfolio.