
The Federal Government is set to invest $1.1bn in renewable mini-power grids to address Nigeria’s recurring electricity grid collapses. Discussions are underway with both local and foreign financial institutions to secure the necessary funding.
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, disclosed this at the Mission 300 Africa Energy Summit in Tanzania. He revealed that the REA has signed a Memorandum of Understanding with the International Finance Corporation (IFC) and five renewable energy service companies—Havenhill Synergy Ltd, Prado Power Ltd, PriVida Power Ltd, Sosai Renewable Energies Ltd, and Virtuitis Solaris Ltd—to expand mini-grid projects across Nigeria. The initiative is part of the World Bank Group’s Nigeria Distributed Access through Renewable Energy Scale-up (DARES) project and aims to provide electricity to 400,000 Nigerians, particularly in rural and remote areas.

Aliyu confirmed that the IFC has committed $200m to the project, while the First City Monument Bank (FCMB) has contributed $100m. These funds are in addition to the $750m grant from the World Bank. The REA is also in discussions with Standard Bank and Stanbic IBTC for additional financing.
Highlighting the project’s progress, Aliyu stated that 65 mini-grids are set for commissioning under the DARES programme. He emphasized the importance of private sector involvement, expressing confidence that the $1.1bn funding goal will be achieved.

Minister of Power, Adebayo Adelabu, underscored the need for a collaborative approach to resolving Nigeria’s power challenges. He noted that achieving universal electricity access by 2030 would require over $30bn, a target beyond the government’s capacity alone. He urged continued cooperation between public and private sectors to drive the nation’s power sector transformation.