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American Journal of  
Environment and Climate (AJEC)

Rural Electrification and the Uptake of  Renewable Energy in Nigeria: 
Lessons from Kenya 

Kamoru T. Lawal 1*

Volume 1 Issue 2, Year 2022
ISSN: 2832-403X (Online)

DOI: https://doi.org/10.54536/ajec.v1i2.353
https://journals.e-palli.com/home/index.php/ajec

Article Information ABSTRACT

Received: June 25, 2022
Accepted: June 30, 2022
Published: Sep. 23, 2022

Recent technology advancements have brought to the fore the role renewable energy can 
play in providing timely access to clean and affordable energy in the rural areas. Although 
rural electrification programme in Nigeria aims at harnessing renewable energy resources 
for improved electricity access, the contribution of  renewable energy has remained marginal 
till date. The aim of  this paper is to identify barriers to the uptake of  renewable energy for 
improved access to electricity in the rural areas. The paper finds that inadequate funding of  
rural electrification programme, high initial costs of  renewable energy technology, absence 
of  community participation coupled with the absence of  a body with specific mandate 
to promote the use of  renewable energy for rural electrification are major barriers to the 
rural application of  renewable energy. Failure of  Nigeria to address the issues will have 
implications for electricity access in the rural areas.

Keywords
Electricity Access, Rural 
Electrification, Renewable Energy, 
Sustainable Energy

1 Principal Partner and head Energy & Natural Resources and Environmental Practice Groups, K. T. LAWAL & CO, Nigeria
* Corresponding author’s e-mail: kamoru.lawal@yahoo.com

INTRODUCTION
Nigeria, with over a population of  200 million and 
landmass covering about 923,773 km2, is the most 
populous country. Arguably, Nigeria has the largest 
economy in Africa (National Council on Power, 2016a; 
IMF, 2017; Ochayi, 2020). Energy supply in Nigeria 
is characterised by overdependence on fossil fuels 
and under-utilisation of  renewable energy resources 
(National Council on Power, 2016b). For many years, 
electricity has remained a source of  concern given that 
only about 57% of  the Nigeria’s population has access 
to grid electricity (World Bank, 2021). The rural areas of  
Nigeria are the most affected with barely 22% access to 
grid electricity (Nnodim, 2021). Many times, the people 
in rural areas, whose energy needs are often basic, have 
had to rely on the traditional energy (mostly biomass) 
as an alternative to electricity (Chete et al., 2014; Bashir 
& Modu, 2018). The state of  electricity access in the 
rural areas is of  serious concern in view of  the fact that 
majority of  Nigerians resides in the rural areas (Federal 
Ministry of  Power, 2015a; Johnson & Ifeoma, 2018). 
Insufficient generation, inefficient transmission system, 
non-coverage of  the grid network and poor distribution 
system have been, and remain, ongoing challenges of  
electricity access in Nigeria, especially in the rural areas. 
The little megawatts of  electricity generated by electricity 
generating companies have to be transmitted through old 
and outdated electricity infrastructures thereby resulting 
in wastages. The outdated electricity infrastructures have 
raised the questions about the reliability of  grid electricity 
in providing access to every part of  Nigeria (KPMG, 
2016; Ohajianya et al., 2014).
For many years, how to provide improved electricity 
access, especially in the rural areas, has remained a key 
policy programme of  successive governments in Nigeria. 
An important programme in this regard is the rural 

electrification programme (REP) which targets electricity 
access in the rural areas. Extending the electricity grid 
network to connect more rural areas to the national grid 
has been a key strategy of  the programme since inception 
(Rural Electrification Agency, 2019a). However, the rate 
of  electricity access shown that grid extension without 
more cannot address the challenges of  electricity access 
in Nigeria. A major reason is that grid extension is not 
sustainable in Nigeria due to the high costs of  extending 
the grid (Sanusi, 2015; AllAfrica, 2018). As a result of  the 
high costs, the Federal Government of  Nigeria (FGN) 
has embraced alternative strategies whereby the country 
will make use of  abundant renewable energy as a key 
component of  the REP (Rural Electrification Agency, 
2019b; Olanrele, 2020a). The approach is based on the 
realisation of  the role of  renewable energy in providing 
timely access to clean electricity in rural areas (Cook, 
2013). Nigeria is blessed with abundant renewable energy 
resources of  varying potentials. The available solar energy 
resources in Nigeria, for instance, can supply not less 
than 36,000 MW of  electricity from only about 1% of  
the country’s land areas (Oyedepo et al, 2018). The wind 
energy and small hydro resources are also a plus to the 
available renewable resources.
Despite the potentials of  renewable energy in providing 
timely electricity access, and the existence of  abundant 
renewable energy resources, the deployment of  renewable 
energy for improved access to electricity in the rural areas 
of  Nigeria is still constrained by a number of  factors. The 
aim of  this paper is to analyse factors that are constraining 
the uptake of  renewable energy for rural electricity access 
in Nigeria. This paper is divided into seven parts. Part I, 
this introduction, sets the context for the challenges of  
rural electrification in Nigeria, while Part II explains the 
methodology employed in this paper. Part III discusses 
the historical evolution of  electricity generation, rural 

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electrification programme and, the policy and regulatory 
frameworks for the REP in Nigeria. Part IV focuses on 
the barriers to rural application of  renewable energy in 
Nigeria. While the uptake of  renewable energy is one 
of  the planks of  the energy policy in Nigeria, too many 
regulators without a specific mandate, lack of  funding and 
failure to promote community participation in renewable 
energy projects have remained major impediments to 
the uptake of  renewable energy as part of  the REP. The 
rural electrification agency, the body that is saddled with 
the responsibility of  rural electrification programme, 
does not have specific mandate to promote the uptake 
of  renewable energy for improved electricity access. 
Powers over renewable energy development are shared 
by different agencies of  the FGN such as the Ministry 
of  Power and the Nigerian Electricity Regulatory 
Commission (NERC). 
Moreover, the deployment of  renewable energy 
technologies involves high initial costs while the rural 
electricity programme continue to be poorly funded by 
the FGN. Nigeria needs to address the barriers to the 
uptake of  renewable energy if  the country is desirous 
of  achieving improved electricity access among the rural 
population. According to Worika (2016), developing 
countries (such as Nigeria) may not achieve sustainable 
development in the absence of  rural applications of  
renewable energy (Worika, 2016). 
This paper argues that Nigeria may not make any 
progress in the application of  renewable energy for 
improved electricity access in the absence of  a dedicated 
fund, community participation and, the establishment of  
a hybrid body with functions over rural electrification and 
renewable energy development. In proffering solutions to 
the identified problems, this article will draw lessons from 
the experience of  Kenya in the application of  renewable 
energy for rural electrification programme. In Part V this 
paper discusses rural electrification programme, electricity 
generation and the development of  renewable energy 
through the law in Kenya. Part VI examines lessons 
which Nigeria can derive from the Kenya’s experience, 
and makes a case for the rural application of  renewable 
energy in Nigeria. 
The paper finds that Kenya is a leading African country in 
electricity generation from renewable energy (particularly 
geothermal and wind), and therefore a country from 
which Nigeria can derive lessons from in the area of  rural 
application of  renewable energy (Fischer et al., 2011). 
Kenya is also the only African country that has been 
benchmarked by the World Bank as a model for other 
African countries in renewable energy development 
(World Bank, 2018; Pueyo, 2018). Part VII concludes 
the discussions and makes recommendations for the 
promotion of  renewable energy for improved electricity 
access in Nigeria.

METHODOLOGY
This paper reviews the law and the policy framework for 
rural electrification programme, and the traditional legal 

materials on the development of  renewable energy in 
Nigeria. For the purposes of  the policy framework, the 
paper will analyse the provisions of  the 2001 National 
Electricity Power Policy, the 2003 National Energy Policy, 
the 2005 Renewable Electricity Policy Guideline, the 
2015 National Renewable Energy and Energy Efficiency 
Policy and the 2016 Rural Electrification Strategy and 
Implementation Plan. The aim is to identity how the 
law and the policy framework have been influencing 
the uptake of  renewable energy for electricity access in 
the rural areas of  Nigeria. In this paper, reference to 
the uptake of  renewable energy for rural electrification 
access has the same meaning as the rural application of  
alternative energy and vice versa.

Electricity Generation and Rural Electrification in 
Nigeria
Background to rural electrification in Nigeria
Although the first electricity generation plant was 
installed in 1896, it was in 1929 that Nigeria achieved 
a major milestone following the establishment of  the 
Nigeria Electricity Supply Company (NESCO) as the 
first utility company in Nigeria (Federal Ministry of  
Power and Steel, 2006a; Aladejare, 2014). In 1946, Nigeria 
granted electricity generation licences to the Public Works 
Department (PWD) and the Native Authority (NA) for 
electricity generation for the Lagos colony and other 
parts of  the country respectively. One noticeable thing 
is that the activities of  the electricity companies were 
concentrated only in the urban parts of  the country to 
the exclusion of  the rural areas. 
The exclusion of  the rural areas resulted in a disparity 
in electricity access between urban and the rural areas 
(Okoro et al. 2007; Aladejare 2014). Later in 1950, 
following the scrapping of  NESCO, PWD and the 
NA, Nigeria established the Electricity Corporation of  
Nigeria (ECN) as the new electricity body. The ECN 
went on to harmonise the electricity infrastructure in the 
country and integrate them into what is now known as 
the national grid (Awosope, 2014). The ECN, however, 
failed to address the disparity in the electricity access 
between urban and the rural areas when harmonising the 
electricity infrastructures. 
The harmonisation created a centralised electricity 
distribution system with major electricity powers given 
to the FGN (Awosope, 2014). In a bid to improve the 
state of  electricity generation and supply in the country, 
Nigeria set up the Niger Dam Authority (NDA), alongside 
the ECN, to oversee hydro-electricity generation. The 
NDA constructed the first electricity dam in Nigeria, the 
Kainji Dam, in the same it was created (Okoro et al. 2007; 
Aigbovo & Ogboka, 2016). Later, for efficiency reasons, 
Nigeria merged the NDA and the ECN to create the 
National Electric Power Authority (NEPA) to oversee 
core electricity functions (that is, generation, transmission 
and distribution) (Zarma, 2006). NEPA, like the previous 
bodies, failed to deliver the anticipated change in the 
power sector. There was no improvement in state of  

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electricity access in the country, especially in the rural areas 
(Uzoma et al, 2021). The development prompted Nigeria 
to opt for a new approach to addressing the challenges of  
electricity access in the rural areas by launching the REP.
Although the launch of  the Nigerian Rural Electrification 
Programme (NREP) in 1981 marked the beginning of  
the REP in Nigeria, the programme started officially 
in 1989 (Federal Ministry of  Power and Steel 2006b; 
Federal Ministry of  Power, Works and Housing, 2016a). 
At the early stage of  the programme, the focus was on 
grid extension to connect more areas. The attempt by 
the FGN to connect local government headquarters 
and selected villages to the national grid under the REP, 
however, failed to materialise. 
The programme could not connect many villages to the 
grid due to high costs of  grid construction and other 
connection costs (Federal Ministry of  Power, Works 
and Housing 2016b; Akpojedje et al., 2016; Amaza & 
Agbaegbu, 2018). In addition to the high construction 
costs, there were allegations of  corruptions in the 
execution of  the rural electrification projects, inadequate 
funding and the absence of  reliable data (Ajibade, 2018). 
So, for many years after its creation the programme did 
not achieve any significant results. The FGN then began 
to consider a complementary approach to grid extension 
that had failed to achieve rapid electricity expansion 
(Federal Ministry of  Power and Steel, 2006c; Okwori, 
2016). In 2009, the FGN suspended the programme but 
re-packaged it in 2012 in line with the objectives of  the 
power sector reform (Elusakin et al., 2014; Madu, 2016).

Policy and regulatory framework for rural electrification 
in Nigeria
Policy Framework
The 2001 National Electric Power Policy (NEPP) is 
one of  the principal policy documents in the Nigeria’s 
electricity industry (ESMAP, 2005). In the NEPP, 
the principal objective of  the rural electrification is 
the rapid expansion of  cost-effective and affordable 
electricity access using a low-carbon energy source (that 
is, renewable energy). Despite the electricity objective in 
the NEPP, there was no significant change to the rate 
of  electricity access in the rural areas. Majorly, there was 
no clear-cut policy framework to guide the development 
of  renewable energy. In 2003, Nigeria achieved a major 
milestone on the development of  renewable energy 
following the approval of  the National Energy Policy 
(NEP) by the National Council on Power. The NEP is 
a sector-wide policy document for the Nigeria’s energy/
electricity sector. 
In the area of  rural electrification, the NEP emphasises 
renewable energy and off-grid electricity generation as key 
to providing electricity access in the rural areas (Federal 
Ministry of  Power, Works and Housing, 2016c). The 
NEP provides for the setting up of  a fund to be known 
as the Rural Electrification Fund (REF) to promote 
access to electricity among the rural population (Energy 
Commission of  Nigeria, 2003). Apart from the REF and 

the role of  renewable energy in promoting sustainable 
energy, the NEP does not contain specific provisions on 
how to drive the REP. Specifically, NEP fails to provide 
for sources of  funding the REF. Later in 2005, the FGN 
introduced the Renewable Electricity Policy Guidelines to 
drive renewable electricity generation in the country. 
The rationale behind the REPG is that it will provide the 
necessary framework for the integration of  renewable 
energy into the country’s electricity mix (Federal 
Ministry of  Power and Steel, 2006d). The REPG seeks 
to ensure sustainable electricity generation by focusing 
on diversification of  electricity generation sources. 
In the area of  funding, the REPG provides for the 
establishment of  the Renewable Electricity Trust Fund 
(RETF) as a component of  the REF. The RETF, a 
private-public sector fund, is meant to promote domestic 
utilisation of  renewable energy and, for the construction 
of  independent renewable electricity projects. Budgetary 
allocation by the National Assembly, surcharge by the 
NERC on electricity consumers and, gifts and donations 
are the main sources of  funding the RETF (Federal 
Ministry of  Power and Steel, 2006e). The provisions of  
the REPG on the RETF are, however, not captured in 
the Electric Power Sector Reform Act that was enacted in 
2005. As a result, there is no legal backing for the RETF, 
which fund would have applied to promote the uptake of  
renewable energy for rural electrification.
The call for a new approach led to the making of  the 
2009 Rural Electrification Policy by the FGN. Rural 
Electrification Policy sets out new modalities for 
undertaking rural electrification in Nigeria. Under the 
new policy, the FGN plans to provide electricity to 
every household regardless of  where they live. A key 
component of  the policy is the use of  renewable energy 
for improved electricity access. 
The FGN is to facilitate private sector participation in the 
development renewable energy for off-grid and on-grid 
electricity (Olanrele, 2020b). Surprisingly, it was in the 
same year 2009 that the FGN suspended the operations of  
the REP on corruption allegations. In 2015, the National 
Council on Power approved the National Renewable 
Energy and Energy Efficiency (NREEEP) as a policy 
document on renewable energy and energy efficiency. 
The NREEP differentiate the mode of  electricity supply 
between urban and the rural areas, and enjoins the FGN 
to develop a strategy for undertaking rural electrification 
(Federal Ministry of  Power (2015b). Electricity supply 
to urban areas will be through the grid, while the rural 
areas will benefit from off-grid electricity through the 
utilisation of  renewable energy resources. 
The new approach to electricity supply between urban 
and the rural area is important as it shows a clear 
understanding of  a fundamental challenge of  grid 
electricity in Nigeria (Federal Ministry of  Power (2015c). 
Specifically, NREEEP emphasises the use of  solar 
photovoltaic in expanding access to electricity among 
the rural population (Federal Ministry of  Power, 2015d). 
NREEEP directs the Rural Electrification Agency (REA) 

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to carry out a feasibility study of  the rural areas for the 
purposes of  ascertaining the possibility of  deploying 
renewable-sourced electricity (Federal Ministry of  
Power, 2015e). In furtherance of  the provisions of  the 
NREEEP on rural electrification strategy, the Federal 
Ministry of  Power, Works and Housing in 2016 approved 
the Rural Electrification Strategy and Implementation 
Plan (RESIP). 
The RESIP embodies the strategies for undertaking 
the REP in Nigeria. According to the RESIP, electricity 
access in the rural areas will be achieved by employing 
strategies that combine the deployment of  on-grid and 
off-grid electricity generation from thermal and renewable 
energy (Federal Ministry of  Power, Works and Housing, 
2016d). The RESIP targets sustainable realisation of  rural 
electrification goals and objectives. The REF will serve as 
a major source of  funding rural electrification projects in 
accordance with the modalities established by the REA 
for allocating the fund. As an additional requirement, 
REA is required to demand the deployment of  low-costs 
but high quality technologies from suppliers who apply 
for subsidies under the REF (Federal Ministry of  Power, 
Works and Housing, 2016e). Based on the projections 
in the RESIP, Nigeria targets 90% electricity access 
in the rural areas by the 2030, and universal access by 
2040. Nigeria plans to actualise the 90% access target by 
connecting 80% to grid-connected electricity and using 
off-grid renewable energy for the remaining 10% (Federal 
Ministry of  Power, Works and Housing, 2016e). The 
RESIP underscores the importance of  community and 
private-owned mini-grids to the realisation of  the rural 
electrification goals (IEA, 2018).

Regulatory Framework
In Nigeria, the 1999 Constitution (as amended) is the 
foundation of  electricity regulation (Oni, 2014). The 
Constitution divides powers over electricity generation, 
transmission and distribution between the FGN and 
the state governments (Federal Ministry of  Power and 
Steel, 2006f; Akinleye, 2020). The FGN exercises power 
with respect to electricity generation, transmission and 
distribution over the national grid, while the powers of  
the state governments are limited to electricity generation 
which are not covered by the grid (Federal Republic of  
Nigeria, 1999a). By the Constitution, where there is a 
conflict between a federal law and a law made by a state 
with respect to electricity, the federal law will prevail 
(Federal Republic of  Nigeria, 1999b; Agbede, 1973; A. 
G. Lagos State, 2017). Given that the bulk of  electricity 
generation is through the grid, the activities of  the state 
governments in relation to electricity generation and 
distribution are, therefore, limited (Oke, 2017). The 
FGN is the primary driver of  electricity law and policy in 
Nigeria. It is in the exercise of  the constitutional powers 
that the National Assembly enacted the Electric Power 
Sector Reform Act (“EPSR Act”) in 2005.
Part IX of  the EPSR Act deals with matters relating to 
rural electrification in Nigeria. The EPSR Act establishes 

the Nigerian Electricity Regulatory Commission (NERC) 
as the electricity regulator, and the rural electrification 
agency (REA) as the coordinator for the REP. The 
EPSR Act provides for the setting up of  a fund, the 
rural electrification fund (REF), for the REP. Based on 
the EPSR Act, contributions from eligible electricity 
consumers and licensees and allocation by the National 
Assembly constitute a major source of  funding the REF 
(Electric Power Sector Reform Act 2005a). The REA is 
required to apply the REF towards the stimulation of  
innovative approaches to rural electrification and, for 
grid and off-grid electrification expansion (Electric Power 
Sector Reform Act 2005b). 
In applying the fund for rural electrification projects, the 
REA is further required to promote equitable electricity 
access among the rural population, and ensures that 
the programme delivers on its mandates of  expanding 
electricity access (Electric Power Sector Reform Act 
2005c). In line with the provisions of  the EPSR Act, 
the FGN officially inaugurated the REA in 2007 as 
the coordinator for the REP, and this signalled a new 
beginning for the programme.

Barriers to Rural Application of  Renewable Energy 
in Nigeria
From the policy documents, the deployment of  
technologies that rely on renewable energy for rural 
electrification is firmly established (REA, 2019c; 
Federal Ministry of  Power & Steel, 2006g; Amaza & 
Agbaegbu). However, the uptake of  renewable energy 
for improved rural electricity access has remained 
marginal. The challenges of  renewable energy in Nigeria 
are a combination of  factors - challenges which are 
peculiar to renewable energy development generally 
(such as high initial costs, absence of  a renewable energy 
regulator/agency, challenges of  new technology, etc.) and 
challenges which are peculiar to rural electrification (poor 
funding, absence of  community participation, absence of  
reliable data and corruption in the execution of  projects) 
(Ajibade, 2018; Ojo & Orue, 2009). The impact of  the 
challenges can be seen in the number of  rural household 
that has so far been provided with electricity access under 
the programme (REA, 2019d). Some of  the factors will 
be examined.

Complex regulatory framework
First, the regulatory framework for renewable electricity 
in Nigeria is unnecessarily complex, and this has affected 
the pace of  development of  renewable energy in the 
rural areas. Globally, the uptake of  renewable requires the 
creation of  a special regime to overcome the dominance 
of  fossil-based electricity (Wiseman et al., 2011). In 
theory, REA operates as an independent body within 
the Presidency. However, in reality REA is subject to 
the control and supervision by the NERC. The NERC, 
the sole electricity regulator, is responsible for regulating 
electricity sector, and for approving renewable electricity 
projects such as mini-grids. In Nigeria, the deployment 

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of  mini-grids is a key strategy of  the rural electrification 
programme. However, the construction of  mini-grids is 
within the exclusive preserve of  the NERC, and requires 
an approval. While there are plans to deploy off-grid 
renewable energy for electricity in the rural areas using 
mini-grids, REA is required to first obtain approvals from 
the NERC before it can deploy the mini-grids (NERC, 
2016). 
What this means is that REA can only undertake any 
projects in accordance with the regulation put in place 
by NERC, and after obtaining necessary approvals. REA 
does not have specific mandates to prioritise electricity 
from renewable energy over the conventional energy. The 
absence of  an obligation on REA to promote the use 
of  renewable has affected the pace of  development of  
renewable energy for electricity access in the rural areas.
In addition to the NERC, there is also the Ministry 
of  Power with supervisory powers over the REA. For 
renewable energy and rural electrification, both the 
NERC and the Ministry of  Power have come up with 
policy documents. 
While NERC has prepared the renewable energy feed-in 
tariff  regulation for renewable electricity generation, the 
FMPWH prepared the RESIP. Each of  these documents 
seeks to establish a framework for the regulation and 
development of  renewable energy in Nigeria without 
proper coordination. The failure of  the FGN to 
streamline the powers of  the regulators has constraint the 
implementation of  rural electricity projects (Okedu et al., 
2015). The result is long and complex approval processes 
for renewable energy projects the rural electrification. 
The administrative bottleneck in the approval processes 
has affected the pace at which REA undertakes renewable 
energy projects in Nigeria (Eleri et al., 2012).

High initial technology costs
Renewable energy technologies are not readily available in 
Nigeria, and as such have to be imported into the country 
at huge costs (Olawuyi, 2013; Ohunakin, 2014). Given 
the poor exchange value of  the Naira to other major 
currencies in the international market (most especially the 
United States’ dollar), the procurement and deployment 
of  these smart technologies involves high initial costs 
(Federal Ministry of  Power, Works and Housing, 2016f). 
As a result of  the high costs, Nigeria has not been able 
to undertake massive deployment of  renewable energy 
technologies in the rural areas (Monyei et al., 2018). 
Connected to the issue of  high costs of  renewable energy 
technologies is the scarcity of  qualified personnel that can 
work on faulty and/or malfunctioned technologies. The 
fear of  not able to get qualified personnel that can repair 
faulty technologies has affected the acceptance rate, and 
as a consequence, the diffusion rate of  renewable energy 
in the rural areas (Federal Ministry of  Power, Works and 
Housing, 2016f).

Inadequate funding of  rural electrification programme
Inadequate funding is another barrier to the uptake of  

renewable energy for rural electrification in Nigeria. For 
many years now, the yearly budgetary allocation by the 
National Assembly including funding from international 
donors has been the principal source of  funding rural 
electrification projects in Nigeria (Anuforo, 2016; 
Olanrele, 2020c). 
However, the budgetary allocation for the REP has been 
very poor, and as such not a reflection of  the percentage 
of  the population that currently lives in the rural areas 
of  Nigeria. Between 1999 and 2010, for instance, out of  
about 1.5 trillion Naira budgetary allocation to the power 
sector rural electrification got only 191 billion Naira (that 
is, about 13.27% of  the allocated money) (Eleri et al. 
2012b). The REP is not well funded so as to be able to 
undertake mass projects. In most cases, REA has little or 
no fund to execute electrification projects which involve 
the uptake of  renewable energy such as the installation 
of  solar PV and batteries (Anuforo, 2016; Okedu et al., 
2015b). The poor funding has hindered the ability of  
the programme to undertake projects that can accelerate 
rural electricity access.

Absence of  community participation
The absence of  community participation in renewable 
energy projects is also affecting the deployment of  
renewable energy projects in the rural areas. Research 
has shown that communities play important roles in 
the diffusion of  renewable energy (Yamamoto, 2016). 
European countries have experienced innovative 
developments courtesy of  community participation in 
renewable energy projects (OECD, 2012).In countries 
like Germany and Demark, for instance, communities 
have facilitated electricity access through the application 
of  decentralised renewable energy system (Bomberg 
& McEwen, 2012; Nolden, 2013). Furthermore, 
associations have emerged for the promotion of  
renewable energy technologies in rural areas through 
community participation in renewable energy (Greenius 
et al. 2010; OECD, 2012). As a result of  the inherent 
benefits, developing countries have been enjoined to 
promote community participation in different forms for 
improved access to energy (Kitenge & Siring, (2019).
In Nigeria, the platform to facilitate collaboration 
between the government and the rural communities is 
almost non-existent. 
The energy policy though recognises the importance 
of  community participation to the uptake of  renewable 
energy, there is no specific guidance on the modalities 
for community engagements (Federal Ministry of  Power, 
2015f). The absence of  community participation has 
denied Nigeria of  the contribution of  rural communities 
to the promotion of  renewable energy. Although the FGN, 
in recognition of  the role of  community engagement in 
the execution of  renewable energy projects, has been 
engaging key stakeholders, a lot still has to be done in this 
regard (Nweze, 2021).

Rural Electrification and Renewable Energy in Kenya

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Background to rural electrification and renewable 
energy development
Energy has played an important role in the economic 
development of  Kenya. There is a strong correlation 
between energy consumption and economic growth in 
Kenya (Esen & Bayrak, 2017). Regarded as the commercial 
hub of  East Africa, energy supply in Kenya comes 
from different sources: petroleum, coals and electricity 
(Republic of  Kenya, 2011a). Kenya generates electricity 
from fossil energy (coal, petroleum and large hydro) and 
renewable energy (solar, small hydro, geothermal and 
wind) (Kiplagat, Wanga & Li, 2011; Onuonga, 2012a). 
The choice of  fossil and renewable energy sources for 
electricity generation can be traced to the economic plans 
for the Kenya’s energy sector. In the 1980s, following an 
economic expansion drive by the Government of  Kenya 
(GoK), Kenya recorded an unprecedented increase in 
the demand for electricity (Republic of  Kenya, 2001b). 
At this time, the main source of  electricity generation 
was large hydro with an insignificant contribution from 
coal and renewable energy (Kapika and Eberhard, 2013; 
Onuonga, 2012b). However, there were challenges with 
choice of  large hydro as the principal source of  electricity 
generation given that hydro was subject to frequent 
fluctuations in supply. The GoK made efforts to address 
not only the immediate electricity demands but also the 
future increase. 
In a bid to ensure more access to electricity, Kenya 
made rural electrification programme one of  the 
core pillars of  sustainable development programme. 
With this approach, Kenya planned to undertake rural 
electrification as part of  the comprehensive economic 
development policy whereby the programme will be used 
for measuring the economic performance of  the country 
(Abdallah, Bressers & Clancy, 2015). Furthermore, the 
GoK embraced the promotion of  renewable energy as 
part of  the sustainable development strategies (Energy 
Act 2006a; Mabea, Macatangay & Mutua, 2018).

Policy and regulatory framework for rural electrification 
in Kenya
In Kenya, the developments in law and the energy policy 
have played major roles on the uptake of  renewable 
energy for rural electrification. Although the policy and 
the regulatory frameworks are historically biased in favour 
of  fossil-fuel energy, the frameworks have nevertheless 
promoted rural electrification and renewable energy 
development. The Electric Power Act 1920 (“EPA”) was 
the earliest legislation on electricity in Kenya. Based on 
the provisions of  the EPA, Kenya established the Kenya 
Power and Lighting Company Limited (KPLC) as the first 
utility company in 1922 (Godinho & Eberhard, 2019). 
Structurally, the EPA created a vertically-integrated 
energy sector with KPLC performing core electricity 
functions (Kapika & Eberhard, 2013). The performance 
of  electricity functions by the KPLC was, however, 
fraught with operational inefficiency. Grid connection 
and expansion projects were poorly executed, and this 

contributed to the poor state of  electricity access in 
the rural areas of  Kenya (National Council for Law 
Reporting, 1982; Mwawughanga, 2005).
In 1973, the GoK launched the rural electrification 
programme (KREP) to address the challenges of  
electricity access in the rural areas (UNEP, 2017). The 
KREP aimed at providing subsidized electricity to the 
people in the rural areas, who were considered as not 
economically buoyant (Ministry of  Energy, 2004a; 
Abdullah & Markandya, 2012). The programme though 
was under the supervision of  the KPLC, there was no 
provision for the uptake of  renewable energy in the 
EPA (Kareithi & Mutua, 2018). In 1986, the Kenyan 
parliament repealed the EPA and enacted a new law, the 
Revised Electric Power Act (“Revised EPA”). 
The Revised EPA did not introduce any significant 
changes to the operations of  the KREP, and the 
development of  renewable energy in particular. The 
operational inefficiency of  the KPLC persisted thereby 
prompting a proposal for reforms. The proposed 
reforms of  the electricity sector aimed at unbundling 
key electricity functions to make KPLC competitive. The 
Revised EPA was repealed in 1997 to pave the way for a 
law that would accommodate the proposed changes in 
the economic paper.
The enactment of  the Electric Power Act 1997 (“EPA 
1997”) resulted in the separation of  electricity regulatory 
functions from the policy functions (Onyango, 2013). 
Based on the provisions of  the EPA 1997, the GoK 
established the Electricity Regulatory Board (“ERB”) in 
1998 as the electricity regulator. The ERB was responsible 
for setting electricity tariff, and for undertaking rural 
electrification (Electric Power Act, 1997; Onyango, 2013). 
The GoK introduced in 1998 a 5% levy on electricity 
consumptions to finance rural electrification projects 
(Ministry of  Energy 2004b). 
However, the KREP was a huge loss to the GoK 
given that about 80% of  the revenue realised from the 
programme was being used to finance loss arising from 
the rural electrification programme (Ministry of  Energy 
2004c). For many years after the inauguration, the KREP 
barely achieved 4% electricity coverage and connectivity 
against 15% target for national coverage. The poor state 
of  electricity access affected the commercial activities in 
the rural areas thereby aggravated the poverty rate among 
the rural population. 
As a result of  the poor outing, the GoK considered a 
further reform of  the electricity sector in 2004 for 
sustainable energy production (Kenya Miniwind Project, 
2018). The GoK then outlined ‘the policy framework 
upon which cost-effective, affordable and adequate 
quality energy services will be made available to the 
domestic economy on a sustainable basis’ (Ministry of  
Energy, 2004d). For the first time, Kenya acknowledged 
the need to promote the uptake of  renewable energy in 
electricity generation.
Kenya shifted from a system that is predominantly fossil-
based to one that favoured renewable energy (Kimuyu, 

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Mutua & Wainaina, 2012). The country set three main 
agenda for rural electrification under the sustainable 
development agenda, that is: (a) creation of  a new body 
for rural electrification programme; (b) use of  renewable 
for rural electrification; and (c) large-scale deployment of  
renewable energy resources (Ministry of  Energy, 2004e; 
Abdallah et al. 2015). 
Additionally, Kenya planned to deploy off-grid 
technologies such as mini-grids and standalone systems 
for rural electrification (Hameedi, 2019). In 2006, Kenya 
enacted a new law, the Energy Act and, repealed the 
EPA 1997 and the Petroleum Act (Energy Act, 2006b). 
Based on the 2006 Energy Act, the GoK re-organised 
the rural electrification programme and established the 
Rural Electrification Authority (“Authority”) as the 
coordinator for the KREP. The Energy Act imposed on 
the Authority the obligation to deploy renewable energy 
technologies for electricity access in the rural areas taking 
into consideration the peculiar needs of  each area such as 
the possibility of  using renewable electricity for irrigation 
(Energy Act, 2006c; Kirai & Shah, 2009). For the first time 
in Kenya, there was a law that mandatorily required the 
Authority to deploy technologies that rely on renewable 
energy. In the aspect of  funding, the Act provided for the 
establishment of  the Rural Electrification Programme 
Fund (REPF) under the supervision of  the Authority. 
The Authority applied part of  the fund to support the 
uptake of  renewable energy for improved electricity 
access (Energy Act 2006d). Following its creation, the 
Authority commenced the expansion of  grid coverage 
across Kenya, even though the expansion could not 
be carried out in every part of  the rural areas due to 
geographical constraints (Lee, Miguel & Wolfram, 2017).
Kenya recorded successes in the operation of  rural 
electrification given that the number of  connectivity of  
customers in the rural areas had increased (Republic of  
Kenya, 2011c). 
Kenya made a further progress in renewable energy 
in 2008 following the GoK’s approval of  a long-term 
economic development blueprint tagged “Vision 2030”. 
By the Vision 2030, Kenya plans a transformation to an 
industrialised country by 2030 generating at least 18,000 
MW from fossil energy and renewable energy sources 
(Kitenge & Siring, 2019b). In 2009, the Authority, in the 
exercise of  its mandates, developed a 3-phased Rural 
Electrification Master Plan (Phase I (2008-2012), Phase 
II (2013-2022) and Phase III (2022-2030) to enhance 
rural electrification (Institute of  Economic Affairs, 
2015). However, the energy and economic development 
objectives of  the Vision 2030 on the development of  
renewable energy and electricity access in the rural areas 
were not captured in the 2006 Energy Act. Consequently, 
a bill was introduced to the Kenyan Parliament to address 
the changes in the energy sector, and this was passed as 
the 2019 Energy Act. The 2019 Energy Act consolidates 
all laws on the Kenya’s energy sector and, repeals the 
2006 Energy Act, the Geothermal Resources Act and the 
Nuclear Electricity Board Order (Energy Act 2019a). The 

2019 Energy Act contains explicit provisions on rural 
electrification and the development of  renewable energy. 
Specifically, the Act establishes the Rural Electrification 
and Renewable Energy Corporation (“Corporation”) 
to oversee rural electrification and renewable energy 
development (Energy Act 2019b). The Corporation, a 
hybrid body, replaces the Authority as the coordinator for 
the KREP. The Corporation implements and executes 
rural electrification projects in Kenya (Energy Act 2019c).
Kenya is now regarded as having one of  the best-served 
off-grid populations in the world. 
Through the application of  the REPF, Kenya has 
recorded increased use of  off-grid renewables such as 
solar PV mini-grids as well as substantial progress in grid 
expansion in rural areas. Kenya has connected not less 
than 5.8 million households under the KREP (Kuo, 2017; 
Castalia & Ecoligo, 2017). 
There are many on-going off-grid projects which are 
specifically designed to expand electricity distribution 
networks in Kenya (Mokveld and von Eije, 2018a). 
One such project is the Kenya Off-Grid Solar Access 
Project (OGSAP) that is being funded under the World 
Bank projects. Through OGSAP, the GoK will deploy 
mini-grids to provide electricity for people in remote 
communities who cannot be connected to the grid. In 
furtherance of  this project, the GoK has approved a 
mini-grid regulation to provide modalities for off-grid 
electricity (Mokveld and von Eije, 2018b). Furthermore, 
the largest solar plant in Africa, the 50 MW Garissa solar 
power plant, is underway courtesy of  the Corporation 
(CMS Legal 2021). While Kenya sets a 100% electricity 
access target by 2030, the available evidence shows that 
the country may achieve universal access earlier than 
planned Banerjee et al., 2017).
From the law and the policy, a number of  factors have 
contributed to the successes of  Kenya in the uptake of  
renewable energy for rural electrification. First, rural 
electrification in Kenya is under the control of  a body 
with dual power, that is, powers over rural electrification 
and the development of  renewable energy. Unlike the 
Authority, the Corporation is obligated to “provide 
sustainable energy solutions for all through rural 
electrification and renewable energy for social economic 
transformation” (REREC, 2019). The Corporation’s 
powers that explicitly cover rural electrification and, the 
development and use of  renewable energy. The grant of  
hybrid powers has enabled the Corporation to consolidate 
on what has been achieved by the Authority in the area 
electricity access through the deployment of  renewable 
energy. 
The Corporation have embarked on a number of  off-grid 
projects, which are designed to support the expansion 
of  the electricity access in the rural areas (Mokveld 
and Eije, 2018c). Furthermore, the Corporation, in 
consultation with the county governments, develops the 
electrification master plans which serve as a template for 
aggregating the energy need of  the rural areas. Kenya is 
able to achieve this feat because there is a framework for 

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sustainable utilisation of  renewable energy whereby the 
law mandates the Corporation to ensure the uptake of  
renewable energy. The Corporation is required by law 
to apply the principle of  equity when developing the 
framework for the uptake of  renewable energy by local 
people (Energy Act 2019e).
Secondly, in addition to the Corporation, there is an inter-
ministerial advisory committee, that is, the Renewable 
Energy Resources Advisory Committee (Committee), 
which advises the Cabinet Minister on the use of  renewable 
energy (Energy Act, 2019f). The Committee’s advice 
covers the following areas: (a) determination of  criteria 
for allocating renewable energy resources; (b) granting 
of  licensing for renewable energy areas; (c) development 
of  multipurpose projects; and (d) management of  water 
and catchment areas; and (e) management of  renewable 
resources (Energy Act 2019g). The idea is to ensure that 
the GoK and the county governments get the best advice 
on the optimal allocation and utilisation of  renewable 
energy resources in Kenya.
Thirdly, the source of  funding the KREP and renewable 
energy has expanded over the years. In Kenya, there are 
now two main sources of  funding: the REPF and the 
CEF. Unlike the funding sources in the previous laws, 
the source of  contribution to the REPF has gone beyond 
the conventional 5% rural electrification levy. Electricity 
levy imposed by the cabinet secretary, interest from bank 
deposits, money appropriated by the Kenyan Parliament 
and revenue from other sources (e.g. donations) now for 
part of  sources for the REPF (Energy Act 2019h). The 
Corporation applies the REPF, and the new fund, the 
Consolidated Energy Fund (CEF), for the implementation 
of  rural electrification projects. 
The CEF specifically targets the promotion of  
renewable energy initiatives and, for the construction 
of  energy infrastructures in Kenya (Energy Act 2019i). 
Of  particular importance among the sources of  funds 
for the CEF is money recovered as proceeds of  crimes 
in the energy sector. What this means is that there are 
more funds for the execution of  the rural electrification 
projects including renewable energy projects. In addition 
to the REPF and the CEF, the law empowers the 
Corporation to source for additional funds for the KREP 
and renewable energy development (Energy Act 2019j). 
So, Kenya maintains a strong link with multinational 
development institutions such as the World Bank, the 
African Development Bank, etc. to raise funds for rural 
electrification projects (Eberhard & Gratwick, 2007). 
Through the collaboration, Kenya has consistently 
mobilised funds for the expansion of  the country’s power 
system, particularly hydro and geothermal developments, 
in a bid to meeting the rising electricity demands. The 
International Finance Corporation, under the PV Market 
Transformation Initiative, for instance, invested not less 
than 5 million US dollars in the Kenya’s solar PV between 
1998 and 2008 (International Finance Corporation, 2021.
Lastly, community participation is a major factor in the 
success or otherwise of  a renewable energy projects in 

Kenya (Equitable Origin, 2016). The practice has given 
the rural community the opportunity to have a say in any 
project to be executed in the rural areas, thereby minimising 
hostilities towards renewable energy projects (Kitenge & 
Siring, 2019c). Furthermore, the participation has served 
as a platform through which the GoK is addressing 
the inequality in electricity supply caused by centralised 
distribution system (Kitenge & Siring (2019d). Rural 
electrification projects in Kenya have benefitted from 
community engagement in the execution of  renewable 
energy. In the past, some renewable energy projects failed 
in Kenya on account of  hostilities from the community. 
The GoK at some point could not successfully complete 
the 90 MW Barahini Electric Wind Farm because of  the 
hostilities from the host community (Sanga, 2016). The 
situation, however, later changed following community 
engagement on renewable energy projects undertaken 
by the GoK. The GoK has set up energy centres across 
the country, a practice that has helped in deepening 
community engagement in renewable energy in Kenya.

Lessons for Nigeria From Kenya’s Experience
Lessons for Nigeria
Kenya appears to have a better approach to rural 
electrification and renewable energy development. 
Compared to the REP in Nigeria, KREP in Kenya has 
recorded progress in the uptake of  renewable energy. 
Presently, Kenya is on the verge of  actualising universal 
access earlier than the set date (Banerjee et al., 2017). 
Some aspects of  the KREP, which can serve as lessons 
for Nigeria regarding rural application of  renewable 
energy, are discussed below.

Creation of  a hybrid agency
Nigeria can gain some experience from Kenya on how 
the creation of  a hybrid body can aid rural application 
of  renewable energy. In Kenya, the creation of  the 
Corporation has ensured that the body that is saddled 
with supervision of  rural electrification also has power 
to develop renewable energy resources. Setting up 
such a hybrid body in Nigeria will ensure that the body 
that coordinates rural electrification can also develop 
renewable energy for rural electrification projects. This 
practice is going to be a welcome development given 
that it will help to address the bureaucratic bottleneck 
associated with REA in obtaining approvals for renewable 
energy projects from the NERC and the Ministry of  
Power. In other words, it will minimise the delay whereby 
the REA will have to first seek and obtain approvals from 
NERC before executing renewable energy projects (e.g. 
approvals for the operation of  mini-grids). Ultimately, 
this will make the coordination of  rural electrification and 
renewable energy development less cumbersome. 
In addition to a hybrid body, the establishment of  a 
renewable energy advisory committee, similar to the 
Renewable Energy Resources Advisory Committee 
in Kenya, can also serve as a lesson for Nigeria. The 
proposed advisory body will advise the GoN on matters 

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relating to the allocation, management and licensing of  
renewable energy resources in various parts of  Nigeria 
as it is being practised in Kenya. This will give Nigeria 
the opportunity to make use of  the expertise of  people 
who are versed in matters relating the development of  
renewable energy.

Expanded funding sources
Given the poor state of  electricity access coupled with 
what need to be done in the area of  funding, Nigeria 
should consider making provisions for the expansion of  
funding for rural electrification. Nigeria should specify 
a portion of  the funds which should be set aside for 
the uptake of  renewable energy. Having a specific fund 
for renewable energy will go a long way in boosting the 
application of  renewable energy for rural electrification in 
Nigeria. The addition of  another funding source, similar 
to the CEF in Kenya, will further aid the development 
of  renewable energy. Corruption has been an endemic 
problem of  the Nigeria’s energy sector. At some point 
in the past, the FGN has had to suspend the REP on 
account of  corruption. 
The FGN had to institute criminal actions against some 
individuals for the purposes of  recovering money which 
has stolen from the energy sector (Sanni, 2021). So, 
having a funding source similar to the CEF will ensure 
that any recovered fund looted from the energy sector 
gets back to the sector. Doing this will go a long way 
in minimising the impact of  corruption on the Nigeria’s 
energy sector especially the rural electrification.
Another important issue that needs to be addressed in 
relation to funding is the allocation of  funds for research. 
The FGN should ensure that a portion of  the fund is 
applied towards research and development of  renewable 
energy initiatives in Nigeria. This will address the 
challenges of  shortage of  qualified personnel.

Setting up of  an advisory committee
The operation of  rural electrification in Kenya owes 
it success to the establishment of  an inter-ministerial 
advisory committee whose works cover criteria for 
allocation and development of  renewable energy 
resources. Nigeria should also consider establishing a 
body with similar functions. Given the fact that the body 
is an inter-ministerial body, this will help in bringing 
together experienced people from different departments 
of  government for the purposes of  proffering solutions 
to the challenges electricity access in the rural areas.

Energy centres and community engagement
Another important lesson for Nigeria from the Kenya’s 
experience is the promotion of  community participation 
in the execution of  renewable energy projects. Trying to 
connect more areas to grid electricity has been a major 
hindrance to electricity access in the rural areas in Nigeria. 
With community participation in Kenya, many rural 
areas have benefitted from the deployment of  renewable 
energy resources in their respective areas for electricity 

generation. Interestingly, community participation in 
renewable energy projects is now gaining increased 
awareness Nigeria (Butu & Strachan, 2022). This is good 
news as there will be more community initiatives such as 
community solar-powered street light, etc. Ultimately, the 
initiative will help to reduce reliance on grid electricity 
for access in the rural areas of  Nigeria. Community 
participation will also enable the FGN to ascertain and 
cater for energy needs of  rural areas in the national energy 
policy. Nigeria should set up energy centres in different 
parts of  the country and use the centres as a platform for 
community engagement.

A case for rural application of  renewable energy
There is need for Nigeria to address the challenges of  
rural application of  renewable energy in order to realise 
the goals of  improving electricity access in the rural 
areas. Apart from improved electricity access, uptake of  
renewable energy in the rural areas will benefit Nigeria 
in many other areas. First, the introduction of  renewable 
energy technologies in the rural areas can help to create 
dynamic rural communities. Renewable technologies 
offer new learning skills, which in turn require new 
learning capacity. The accumulation of  the new skills is a 
necessary innovation for the transformation of  the rural 
areas. The presence of  different actors in the renewable 
energy chain is an opportunity for dynamism since 
there are many new things the communities can learn 
and apply (Hache, 2018). In some rural communities, 
solar power has been erected to generate electricity for 
use of  the communities as an alternative to the regular 
electricity service provider. The involvement of  the 
communities in this context does not necessarily mean 
that the communities will own the projects (Seyfang et al., 
2013). Rather, it provides additional platforms through 
which a number of  organisational structures such as 
cooperative organisations, charities and trusts can partake 
in renewable energy projects.
Secondly, rural application of  renewable energy will serve 
as an opportunity for Nigeria to explore decentralised 
energy system. Through decentralised energy system, 
Nigeria can significantly minimise the challenges of  the 
centralised energy distribution system which has denied 
rural areas access to electricity. Moreover, the rural 
application of  renewable energy will aid the application of  
local knowledge in proffering solutions to the challenges 
of  community-owned renewable energy projects. 
This way, there will be opportunities for better energy 
solutions among the rural areas population. Community-
owned renewable energy projects, in this context, refer 
to all activities relating to electricity generation using 
renewable energy technologies in a local setting rather 
than ownership by the community. 
Thirdly, the promotion of  rural application of  
renewable energy can lead to more investments in 
energy infrastructure and, as a consequent, more job 
opportunities for the people in the rural areas (OECD, 
2012). Many unemployed people can learn and take up 

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employment in operation and maintenance of  renewable 
energy equipment. Doing this will enhance the capacity of  
the rural areas for development including opportunities 
for human capital developments in the local context 
(Hick & Ison, 2018).
Lastly, the rural application of  renewable can serve as 
an opportunity to earn additional revenue by people 
in the rural areas (OECD, 2012). Renewable energy 
infrastructures are predominantly land-based activities 
that require acquisition of  land on a long-term basis. For 
these activities, renewable energy investors will have to 
pay rents to landowners to acquire land (UKA, 2021). 
Landowners, who have parcel of  land that suits renewable 
energy projects, will be able take this as opportunities to 
earn extra revenue incomes.

CONCLUSION
There are prospects for the uptake of  renewable energy 
for rural electrification in Nigeria. Nigeria should, 
therefore, take steps to address the identified barriers to 
the rural application of  renewable energy. Nigeria can do 
this by taking a cue from Kenya in some aspect of  rural 
electrification. Nigeria should consider the establishment 
of  a single body for rural electrification and renewable 
energy development. Such a hybrid body will be better 
placed to undertake renewable energy projects alongside 
rural electrification projects. The law should specify the 
minimum renewable energy component in the rural 
electrification projects. 
The experience of  Kenya regarding funds for renewable 
electricity is an important lesson for Nigeria. Nigeria 
should consider expanding the sources of  funding for 
the REF to include money recovered from corruption 
cases in the energy sector. In addition, Nigeria should 
consider setting up of  a dedicated fund that is similar to 
the CEF in Kenya. This will help to ensure that looted 
fund finds it way back to the energy sector through 
rural electrification. Community participation is another 
areas that Nigeria needs to consider. This is of  particular 
importance in view of  the level of  mistrust between local 
communities and the FGN on ground of  marginalisation 
(Aderinoye-Abdulwahab & Adefalu, 2012). The 
promotion of  community participation can also serve as 
a platform for educating the people of  the rural areas 
on the benefits of  off-grid electricity projects. Above all, 
the FGN should ensure that the recommendations are 
adapted in a way that the peculiar situation of  Nigeria will 
be carefully addressed. At a minimum, Nigeria can amend 
the EPSR Act to capture the recommendations of  this 
paper (Lawal, 2021).

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