The Federal Government has said solar energy is creating new opportunities for private investment in Nigeria’s electricity sector, with solar-powered mini-grids emerging as a viable business model for expanding power supply.

Speaking at an event in Lagos, the Managing Director of the Rural Electrification Agency, Abba Aliyu, said the increasing adoption of mini-grid projects is making the sector more attractive to investors.

According to him, renewable energy can help reduce investment risks in the power industry while encouraging greater participation from the private sector.

Aliyu said Nigeria’s electricity sector would achieve lasting progress if more private capital is directed toward improving power infrastructure instead of relying heavily on public funding to address longstanding inefficiencies.

He also noted that the Federal Government’s investment in solar energy projects is helping to reduce the huge amount spent annually by businesses on self-generated electricity due to unreliable grid supply.

Aliyu added that mini-grids should no longer be seen only as a solution for rural electrification, describing them as a commercially sustainable approach that can improve electricity access for more communities and businesses across the country.