2026 Budget: REA earmarks N1.89bn for mini-grids in ‘Smart Communities’

Lagos hospital pays N20m monthly bill for 3hrs daily electricity

By Obas Esiedesa, Abuja

The Rural Electrification Agency (REA) has proposed N1.89 billion to deploy mini-grids for the development of ‘smart communities’ across Nigeria’s six geopolitical zones.

Described as ongoing projects, REA plans to allocate N315 million to each zone. The agency has a total of N502 billion earmarked for capital projects in the 2026 Appropriation Bill.

In addition, REA has proposed N2.1 billion for solar streetlights in public institutions across the six zones, with each zone receiving N350 million. Another N2.03 billion is allocated for alternative energy deployment for technology demonstration, with N455 million assigned to the North East and N315 million to each of the other five zones.

The agency also plans to spend N1.89 billion on the provision of solar home systems to support economic development, with each zone receiving N315 million.

Outside the zones, REA proposed about N3 billion for ongoing projects in Oyo State. Highlights include:

N350 million for solar mini-grids for farmers in selected communities

N350 million for electrification and solar streetlights in underprivileged communities

N350 million for grid extension in underserved communities in Oluyole and environs

N350 million for solar streetlights in security-challenged locations like Egbeda and environs

N350 million for electrification and solar streetlights in local government areas across Oyo State

N350 million for renewable energy solutions in unserved areas in Ona-Ara and environs

N70 million for repair of roads with solar lighting in selected rural communities in Oyo North Senatorial District

Additionally, REA proposed N5 billion for electrification of grain processing zones and activation of the night-economy programme.

These initiatives are part of REA’s broader plan to expand electricity access, promote renewable energy, and stimulate economic activities in underserved and rural communities across Nigeria.

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