The Rural Electrification Agency (REA) has announced the launch of a major rural electrification initiative next month, backed by $750 million in funding from the World Bank.
During an interview on Channels Television’s Sunrise Daily, Abba Aliyu, REA managing director, revealed that the new initiative, known as the Distributed Renewable Energy Scale-up Project, represents one of the most ambitious efforts globally in terms of its scope.
The project aims to deliver electricity to 17.5 million Nigerians, primarily through renewable energy solutions.
Aliyu outlined the project’s structure, explaining that out of the 17.5 million people targeted, three million will receive power through isolated mini-grids, 1.5 million through interconnected mini-grids, and the rest via the national grid and stand-alone solar systems.
He emphasised the project’s global significance by comparing it to similar large-scale electrification efforts in countries like India.
“This new Distributed Renewable Energy Scale-up Project, financed by a $750 million World Bank fund, aims to electrify 17.5 million Nigerians. It is one of the most ambitious projects in the world,” said Aliyu, highlighting its unprecedented scale in addressing Nigeria’s electrification needs.
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The initiative is projected to span five years and builds on the success of previous efforts, which received $550 million in funding from the World Bank and the African Development Bank (AfDB).
The World Bank gave the green light to this project, officially named the Nigeria Distributed Access through Renewable Energy Scale-up (DARES) Project, in December 2023.
The $750 million funding comes from an International Development Association (IDA) credit and is expected to draw in over $1 billion in private investment, along with additional support from development partners.
This includes $100 million from the Global Energy Alliance for People and Planet, as well as $200 million from the Japan International Cooperation Agency (JICA). Additional partners include the United States Agency for International Development (USAID), the German Development Agency (GIZ), Sustainable Energy for All (SEforAll), and the AfDB.
With nearly 90 million Nigerians still lacking access to electricity, this project aims to address one of the country’s most critical infrastructure gaps.
Currently, Nigeria generates only about 5,000 megawatts of electricity for a population exceeding 200 million people, making it one of the largest populations without adequate electricity access globally.
In addition to the vast potential for solar energy, especially in northern Nigeria, where sunlight is abundant for up to 12 hours daily, the country also has significant wind and hydropower generation capabilities, positioning it well for renewable energy development.
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