Nigeria is ramping up efforts to close its electricity gap with a $750 million renewable energy programme designed to unlock wider access and attract over $1.1 billion in private sector investment.
The Managing Director of the Rural Electrification Agency (REA), Dr. Abba Aliyu, disclosed this during a webinar organised by the African Association of Energy Journalists and Publishers on Wednesday in Lagos.
Aliyu said the funding, under the Distributed Access through Renewable Energy Scale-Up (DARES) programme, is expected to provide electricity to 17.5 million Nigerians by connecting more than 2.5 million households nationwide.
“The project is designed around the private sector using a results-based financing model. Developers must mobilise their own capital before accessing incentives,” he said.
He explained that the structure of the programme has already begun attracting strong interest from financial institutions and development partners, noting that it is poised to catalyse an additional $1.1 billion in private investment.
“We are already seeing strong traction. Financial institutions and development partners are committing funds, demonstrating confidence in the model,” Aliyu added.
The REA boss described the initiative as the largest publicly funded renewable energy access programme globally, stressing that it will rely heavily on the deployment of 1,350 mini-grids, including 250 interconnected systems.
According to him, recent regulatory reforms have strengthened investor confidence by increasing allowable mini-grid capacity to as much as 10 megawatts for interconnected systems, while simplifying licensing and environmental processes.
Aliyu noted that the initiative aligns with broader government efforts to expand renewable energy capacity and stimulate local manufacturing, which has grown to 300 megawatts, with a pipeline of 3.7 gigawatts.
He also pointed out that Nigeria’s electricity access model is gaining continental attention, with several African countries, including Mozambique, Benin, and Niger, among those exploring its adoption.
“The structure of this programme has unlocked significant private financing and is setting a benchmark for renewable energy deployment across the region,” he said.
He expressed optimism that the programme would not only improve energy access but also deepen regional integration, particularly through off-grid solutions in border communities.