The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, has revealed that some rural communities across Nigeria are currently paying higher electricity tariffs than Band A customers in urban centers, despite depending largely on mini-grid and solar-powered systems for supply.
Aliyu made this disclosure on Monday during an interview on Channels Television’s The Morning Brief, where he highlighted the ongoing successes of the agency’s electrification projects.
According to him, Nigeria’s rural electrification model has not only provided a reliable supply of power but also shown the willingness of rural dwellers to pay for quality energy services.
“There are rural communities in Nigeria that pay more tariffs than Band A customers. In some areas, tariffs are as high as ₦250 to ₦280 per kilowatt-hour.
Yet, residents pay because they now enjoy stable electricity,” Aliyu explained.
The REA boss explained that the tariff charged in rural areas depends largely on the total cost of infrastructure deployed.
Since many of these communities are outside the reach of the national grid, the agency relies on solar mini-grids, hybrid systems, and independent power projects to generate and distribute electricity.
Unlike grid-connected Band A customers—who pay about ₦206.80 per kilowatt-hour under the current tariff structure—rural dwellers often shoulder the cost of building localized power systems, including solar panels, battery storage, and distribution lines.
Aliyu stressed that while some communities pay more than Band A customers, others pay less, depending on the size of the project, cost of equipment, and operational sustainability.
“They pay for their electricity and they enjoy it. In some locations, tariffs are below Band A levels, but in others, they are much higher.
It is all subjective to the total cost of infrastructure deployed within those communities,” he said.
Highlighting the practicality of solar-powered solutions, Aliyu said the agency has proven that renewable energy remains the most sustainable model for rural electrification.
Nigeria has one of the largest energy deficits in the world, with the World Bank estimating that over 85 million Nigerians lack access to grid electricity.
Through its interventions, REA has completed dozens of solar mini-grids and interconnected projects, especially in underserved regions.
These projects have powered universities, teaching hospitals, markets, and farming clusters across Nigeria’s six geopolitical zones.
Aliyu noted that beyond households, the mini-grids are transforming rural economies by enabling agro-processing, cold storage for farmers, water pumping for irrigation, and improved healthcare delivery in rural hospitals.
One surprising outcome of the REA’s work, Aliyu emphasized, is the willingness of rural Nigerians to pay for power, contrary to assumptions that rural dwellers cannot afford electricity.
“Many rural communities have shown that they value electricity and are ready to pay for it because it directly improves their livelihoods.
When power is stable, farmers preserve produce, students read at night, and small businesses run efficiently,” he added.
This, according to him, has justified the government’s investments and encouraged private sector developers to partner with REA in expanding renewable energy access.
The revelation that rural communities sometimes pay more for electricity than urban Band A customers raises critical questions about equity in Nigeria’s power sector.
While Band A users benefit from federal subsidies and grid infrastructure, rural dwellers often have to rely on self-financed or donor-supported renewable energy projects.
Energy experts argue that Nigeria’s Electricity Act 2023, which liberalized state-level electricity markets, could pave the way for fairer competition and pricing models.
States can now license private operators to build independent grids, which may eventually help reduce the cost burden on rural households.
The REA has already partnered with development agencies like the World Bank, African Development Bank (AfDB), and the Rockefeller Foundation to scale up access to off-grid electricity.
These collaborations have delivered thousands of solar home systems and mini-grids, with the goal of achieving universal electricity access by 2030 in line with Sustainable Development Goal 7 (SDG 7).
The REA’s disclosure underscores both progress and challenges in Nigeria’s rural electrification journey. On one hand, millions of Nigerians in remote areas are gaining access to reliable electricity for the first time.
On the other, the tariff disparity—with some villagers paying more than affluent city dwellers—highlights the urgent need for policy reforms, subsidies, and investment incentives to make rural power supply more affordable.
As Nigeria continues to expand its energy mix, the success of rural solar mini-grids shows that the future of power may not lie solely in large, centralized plants, but in community-driven, renewable energy solutions that bridge the access gap.