Nigeria Targets 5.2m Electricity Connections Under World Bank-Backed Programme
Nigeria’s push to expand electricity access has received a significant boost as the Federal Government accelerates implementation of a $750 million intervention designed to connect millions of households and businesses through renewable energy solutions.
Backed by the World Bank, the initiative reflects a broader shift towards decentralised power systems aimed at addressing persistent energy deficits across the country.
The programme, known as the Distributed Access through Renewable Energy Scale-up (DARES) project, is gaining traction, with early indicators suggesting steady progress despite structural and macroeconomic challenges.
FG targets 5.2m electricity connections under $750m loan
Under the plan, the Federal Government aims to deliver electricity access to at least 5.2 million Nigerians by June 2026. This milestone represents a critical benchmark in Nigeria’s long-standing effort to bridge its electricity access gap, particularly in underserved and off-grid communities.
Recent implementation reports indicate that over 3.6 million people have already been connected through the initiative, positioning the programme on track to exceed earlier projections.
The rollout is being driven largely by private-sector participation, with investments channelled into solar mini-grids, standalone solar systems, and hybrid energy solutions.
The DARES project is structured to support households as well as Micro, Small, and Medium Enterprises (MSMEs), a segment widely regarded as the backbone of Nigeria’s economy.
By improving access to reliable electricity, the initiative is expected to unlock productivity, reduce operating costs, and stimulate grassroots economic growth.
Energy analysts note that the emphasis on renewable energy reflects a pragmatic shift in Nigeria’s electrification strategy. Rather than relying solely on the national grid—which has been plagued by capacity constraints and frequent outages—the government is leveraging distributed energy systems to deliver faster and more scalable results.
Renewable energy gains momentum in Nigeria’s power sector
The DARES programme has already contributed measurable gains in Nigeria’s renewable energy capacity. As of March 2026, installed capacity under the project has risen to approximately 38.76 megawatts, with a long-term target of 465 megawatts by 2028.
This expansion is being supported by a mix of solar home systems and mini-grid installations, particularly in rural and peri-urban areas where grid extension remains economically unviable. The approach aligns with global best practices in energy access, where decentralised systems are increasingly used to complement traditional infrastructure.
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Officials say the programme is also designed to crowd in private capital by creating a more predictable regulatory environment and offering targeted incentives to developers. This is expected to enhance sustainability and reduce reliance on public funding over time.
Financing structure and disbursement progress
Out of the total $750 million earmarked for the project, approximately 9 per cent has been disbursed so far, while over $422 million has already been committed to various components.
The funding is being deployed across multiple streams, including infrastructure development, technical assistance, and capacity building.
The intervention is financed through concessional lending from the International Development Association, a key arm of the World Bank that supports low-income countries. Nigeria remains one of the largest beneficiaries of such funding, reflecting both its development needs and strategic importance within the global financial system.
Data from the Debt Management Office shows that Nigeria’s exposure to the World Bank Group stood at over $19 billion as of late 2025, accounting for a significant share of the country’s external debt portfolio.
Economic impact and challenges ahead
While the progress recorded so far is notable, stakeholders caution that the overall risk profile of the project remains “substantial.” Key concerns include macroeconomic instability, foreign exchange volatility, and institutional capacity constraints that could affect implementation timelines.
There are also broader structural issues within Nigeria’s power sector, including weak transmission infrastructure, tariff shortfalls, and liquidity challenges across the value chain. These factors could limit the long-term impact of electrification efforts if not addressed in parallel.
Nonetheless, experts argue that the DARES initiative represents a critical step towards closing Nigeria’s electricity access gap, which continues to affect millions of citizens and businesses. Improved access to power is widely seen as a catalyst for industrialisation, job creation, and inclusive economic growth.
For small businesses in particular, access to reliable electricity could significantly reduce dependence on costly diesel and petrol generators, improving margins and competitiveness. In rural areas, electrification is expected to enhance quality of life by supporting education, healthcare delivery, and digital connectivity.
Outlook for Nigeria’s electrification drive
Looking ahead, the success of the programme will depend on sustained policy support, efficient execution, and the ability to attract additional private-sector investment.
The government’s focus on renewable energy is also expected to align with global climate goals, positioning Nigeria as a key player in Africa’s energy transition.
If effectively implemented, the initiative could serve as a model for other countries facing similar energy challenges, demonstrating how targeted interventions and strategic partnerships can accelerate access to electricity at scale.
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