Nigeria has secured $83 million in fresh financing to expand off-grid electricity supply as the country continues to shift towards decentralised power solutions to boost accessibility and alternative solutions.
The funding, backed by the International Finance Corporation (IFC) under the Distributed Access through Renewable Energy Scale-Up programme, is targeted at private developers deploying solar mini-grids and standalone systems in rural and underserved communities.
The agreement was signed during the 2026 Spring Meetings of the World Bank Group and IMF in Washington, marking a transition from small pilot projects to large-scale execution.
This intervention comes at a critical time, when Nigerians are tapping into solar alternatives as petrol prices continue to rise amid current Middle East disruptions.
According to the World Bank, about 85 million Nigerians, roughly 40 per cent of the population, still lack access to electricity. Even among those connected to the grid, supply remains unreliable. National output continues to hover between 4,000 and 5,000 megawatts, a level widely considered inadequate for an economy of Nigeria’s size.
The Head of the Nigeria Electrification Programme, Mr Olufemi Akinyelure, made it clear that the market is evolving beyond experimentation.
“This marks a shift from programme design to execution at scale. Distributed renewable energy in Nigeria is now a bankable market, not a pilot segment,” he said.
The $83 million facility is designed as a revolving debt model, combining concessional and commercial funding to provide long-term capital to developers. This approach reduces risk, improves access to finance, and allows projects to scale across multiple locations without repeated funding bottlenecks.
In practical terms, the first phase will support companies such as Darway Coast, PriVida Power, Prado Power, GVE Projects and StarTimes Smart Energy, while another group of developers is already lined up for the next round. The fund will allow the shortlisted firms to deploy power faster to communities that have waited decades for reliable electricity.
Backed by a $750 million World Bank facility, the initiative aims to reach over 17.5 million Nigerians by 2028 and deliver about 465 megawatts of distributed renewable energy capacity. Current data from the Nigeria Electrification Programme shows that more than 4.1 million people have already benefited, alongside the installation of over 175 mini-grids and 1.1 million solar home systems.
For many rural communities, it will help boost small businesses, healthcare delivery, and education. Traders can extend operating hours, clinics can preserve vaccines, and students can study beyond daylight. In areas where petrol and diesel generators dominate, the shift to solar also cuts fuel costs and reduces exposure to volatile energy prices.
According to the IFC Managing Director, Mr Makhtar Diop, the role of blended finance in unlocking scale helps address long-standing barriers within the energy ecosystem.
Special Adviser to the President on the Economy, Ms Sanyade Okolie, who represented the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said the federal government sees investment as critical to lifting millions of Nigerians out of poverty.
She added that the focus remains on attracting capital that delivers measurable improvements in living standards.
“For Mr President, the priority is to transform the Nigerian economy in a way that lifts people out of poverty. People must feel the difference,” she said.
On his part, the Minister of Communications, Innovation and Digital Economy, Mr Bosun Tijani, linked the programme to Nigeria’s ambition of building a one trillion-dollar economy, stressing that infrastructure, particularly power and digital systems, will determine how fast that target can be reached.