Proposed NARE bill poses risk to electricity market – REA CEO
The Managing Director/Chief Executive Officer of the Rural Electrification Agency, REA, Dr. Abba Aliyu, has cautioned that the Electricity Act (Amendment) Bill, 2025, which seeks to establish the National Authority for Renewable Energy, NARE, constitutes serious risks to Nigeria’s electricity market. In an article on Monday made available to Daily Trust, Aliyu said the Bill […]
Dr. Abba Aliyu, the Chief Executive Officer of the Rural Electrification Agency (REA), has expressed concerns that the proposed National Authority for Renewable Energy (NARE) in the Electricity Act (Amendment) Bill, 2025, could pose significant risks to Nigeria's electricity market. According to Aliyu, this bill, currently before the National Assembly, could introduce regulatory confusion and deter investors from the sector.
He argues that the bill seeks to transfer renewable-energy functions from existing entities like the National Electricity Regulatory Commission (NERC) and the REA, and allocate a substantial portion of the Rural Electrification Fund to NARE, thereby causing fragmentation in an already viable market. Aliyu contends that each new regulatory interface introduces additional approvals, interpretations, disagreements, and risks that must be factored into the cost of capital.
He highlights that 16 states have already received regulatory oversight from NERC under the Electricity Act 2023, and the introduction of another federal regulator organized around technology would create another layer of jurisdiction. Aliyu acknowledges that Nigeria's distributed-energy market is showing promising results, with over 1,000 mini-grids under development and a $750 million DARES programme targeting 17.5 million Nigerians, 1,225 mini-grids and 465MW.
He also mentions that REA has secured potential domestic financing commitments of N350 billion, including contributions from FCMB N100bn, Lotus Bank N100bn, Alpha Morgan N50bn and Stanbic IBTC N100bn. Aliyu emphasizes the need for predictable rules for long-term investments, warning that ambiguity increases the cost of capital and electricity tariffs.
He cautions against diverting the Rural Electrification Fund to fund a new institution, arguing that every naira should be judged by its impact on the number of Nigerians connected to the grid. Aliyu advises the National Assembly to conduct a regulatory-impact analysis and seek feedback from states, investors, and development partners before making a decision.
Written by urgent.news from Daily Trust's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
