Nigeria Seeks $1.1 Billion to Expand Renewable Mini-Grids Amid Power Crisis
In a bid to tackle Nigeria’s persistent power crisis and frequent grid collapses, the Federal Government is working with local and international financial institutions to secure $1.1 billion for the expansion of renewable mini-grids across the country.
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, made the announcement during the recently concluded Mission 300 Africa Energy Summit in Dar es Salaam, Tanzania. According to him, the initiative, known as the Nigeria Distributed Access through Renewable Energy Scale-up (DARES) project, aims to provide electricity access to 400,000 Nigerians, particularly in rural and underserved areas.
Aliyu revealed that the REA has signed a Memorandum of Understanding (MoU) with the International Finance Corporation (IFC) and five renewable energy companies—Havenhill Synergy Ltd, Prado Power Ltd, PriVida Power Ltd, Sosai Renewable Energies Ltd, and Virtuitis Solaris Ltd—to drive the expansion of mini-grids under the World Bank-backed project.
The IFC has committed $200 million to the initiative, while First City Monument Bank (FCMB) has provided an additional $100 million. These funds complement a $750 million grant from the World Bank, bringing the project closer to its $1.1 billion target. The REA is also in discussions with Standard Bank and Stanbic IBTC to secure additional funding.
“It was a very long negotiation with IFC—almost a year,” Aliyu stated. “But just last year, the Managing Director of IFC assured us that the funds would be provided, and today, we are making significant progress. Right now, we have 65 new mini-grids ready for commissioning under the DARES project.”
Nigeria’s Minister of Power, Adebayo Adelabu, underscored the critical role of private sector involvement in solving the country’s electricity challenges. He stressed that achieving universal electricity access by 2030 would require over $30 billion in investments, an amount that the government alone cannot provide.
“The government alone cannot meet this financial demand. It requires cooperation and collaboration with the private sector, both locally and internationally,” Adelabu said. “It’s a combination of public and private funds—equity and debt—that can take us to our destination.”
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As Nigeria pushes forward with its renewable energy expansion plans, the success of the DARES project is expected to play a crucial role in bridging the country’s energy gap, enhancing rural electrification, and driving economic growth.
