NEWS REPORT
Lagos, Nigeria — The Managing Director and Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, has called for a fundamental rethink of Nigeria’s electricity distribution model, urging utilities to adapt to the emerging decentralised energy market.
Aliyu made the remarks while participating in the IBEDC FY2026 Board Strategy Retreat, which brought together board members, executive leadership, regional managers, and industry stakeholders to discuss the future direction of the electricity distribution company under its evolving ownership structure.
In his presentation themed “Opportunities for Distribution Utilities in Nigeria’s Emerging Decentralized Electricity Market,” the REA chief challenged traditional perceptions of electricity distribution, noting that utilities must evolve beyond the role of commodity suppliers to become multi-sided energy marketplaces.
He argued that the future of power distribution lies in greater innovation, integration of new technologies, and stronger customer-centred service delivery models that create value across the entire energy ecosystem.
Aliyu also emphasized the strategic importance of interconnected mini-grids, stating that they should not be viewed as competitors to distribution companies (DisCos), but rather as complementary solutions. According to him, such systems can help reduce technical losses, defer capital expenditure, improve reliability, and accelerate electrification in underserved communities.
He further highlighted the potential for utilities to collaborate with the REA in leveraging blended finance mechanisms, improving network digitalisation, and expanding electricity access more efficiently and sustainably.
According to him, Nigeria’s electricity sector holds significant untapped distributed energy potential, particularly within existing franchise areas, which could be unlocked through stronger partnerships and innovative business models.
Aliyu stressed that the future performance of utilities would not be measured solely by energy sales volumes, but by their ability to integrate innovation, attract investment, deploy modern technologies, and prioritise customer needs.
The REA CEO expressed optimism about ongoing reforms in the sector, noting that institutions willing to embrace change and innovation are better positioned to thrive in Nigeria’s evolving power landscape.
