FG Targets 5.2 Million Nigerians with Electricity Connections Under $750M World Bank Loan

The Federal Government of Nigeria is ramping up efforts to expand electricity access, aiming to connect 5.2 million Nigerians by June 2026 under a $750 million intervention backed by the World Bank. The initiative, known as the Distributed Access through Renewable Energy Scale-up (DARES) Project, is designed to deliver affordable electricity to households and small businesses using renewable energy solutions.

According to the latest World Bank Implementation Status and Results Report, the DARES programme has made notable progress, with $422.2 million of the total funding already committed. While only 9 per cent of the $750 million has been disbursed so far, the project has successfully provided electricity access to over 3.6 million people across the country, keeping it on track to meet its near-term targets.

The June 2026 milestone represents a significant leap from earlier projections, surpassing the Mission 300 target of connecting 3.2 million people by the end of the financial year. The project, approved in December 2023, focuses on private-sector-driven renewable energy solutions, including solar hybrid mini-grids and standalone solar systems for both households and Micro, Small, and Medium Enterprises (MSMEs).

Renewable energy capacity has also seen measurable growth under the programme, reaching 38.76 megawatts as of March 2026, with a long-term goal of 465 megawatts by 2028. Thousands of households and businesses have been equipped with solar home systems and mini-grid solutions, while efforts continue to mobilize private-sector investment and enhance regulatory frameworks to sustain the expansion of electricity access.

Despite these successes, the World Bank warns that project risks remain “substantial,” citing challenges such as macroeconomic instability, governance issues, and institutional capacity limitations. The DARES project is set to run until December 2028, with funding spread across multiple International Development Association windows. Currently, Nigeria’s exposure to the World Bank Group stands at $19.54 billion, highlighting the multilateral lender’s key role in supporting the country’s infrastructure and renewable energy development.

source: punch