Nigeria has secured about $83 million in International Finance Corporation-backed financing to expand off-grid electricity access to rural and underserved communities across the country, in what authorities describe as a major step toward closing the nation’s power gap.
The Head of the Nigeria Electrification Programme and DARES Project Lead, Nigeria Electrification Programme, Olufemi Akinyelure, disclosed this in a statement released on Friday.
It said the funding was mobilised under the Distributed Access through Renewable Energy Scale-Up programme.
According to the statement, the financing agreement was signed on the sidelines of the World Bank Group and IMF Spring Meetings 2026 in Washington, D.C., and will support private developers deploying mini-grids and solar home systems in communities without reliable electricity.
The programme noted that the initiative marks a shift from pilot projects to large-scale deployment of off-grid renewable energy solutions aimed at improving electricity access for millions of Nigerians.
“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,” Akinyelure said.
He added that the financing structure would help accelerate the delivery of power solutions to communities and support economic activity in underserved areas.
The first phase of the financing includes companies such as Darway Coast, PriVida Power, Prado Power, GVE Projects and StarTimes Smart Energy.
Other developers, including Ashipa Energy, Eauxwell Nigeria, Ignite Power, Maskh Nigeria, Nayo Tropical Resources and Paras Energy, have been included in the next phase of the programme.
The statement explained that the funds are structured as a revolving debt facility backed by the IFC, designed to provide long-term, affordable financing to renewable energy developers. The model blends concessional and commercial capital to speed up deployment across multiple communities.
“This demonstrates how blended finance can address ecosystem constraints at scale. Nigeria is leading the way,” said IFC Managing Director, Makhtar Diop.
Representing the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, Special Adviser on the Economy, Sanyade Okolie, said the Federal Government remains committed to attracting investment that improves 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.
Minister of Communications, Innovation and Digital Economy, Bosun Tijani, said the investment aligns with the government’s broader ambition to build a stronger, technology-driven economy.
“The President’s ambition is to build a one trillion-dollar economy. This requires significant investment in infrastructure, particularly digital infrastructure,” Tijani said.
Chief Executive Officer of Sustainable Energy for All, Damilola Ogunbiyi, described the programme as a model for expanding energy access in developing countries.
“DARES is showing how the right structures can unlock scale, accelerate deployment, and deliver real impact for millions,” she said.
Nigeria continues to face a major electricity access deficit, with millions of households and businesses lacking a reliable power supply. Many communities rely heavily on petrol and diesel generators, which are costly and environmentally damaging.
To address this challenge, the Federal Government, through the Rural Electrification Agency, has been promoting distributed renewable energy solutions such as solar mini-grids and standalone solar systems.
The DARES programme, backed by a $750 million World Bank facility, is designed to expand electricity access through private sector-led renewable energy projects. It aims to reduce dependence on fossil fuel generators while improving energy access in rural and peri-urban areas.
According to the Nigeria Electrification Programme, the initiative has already reached more than 4.1 million Nigerians and targets over 17.5 million beneficiaries by 2028, alongside the deployment of about 465 megawatts of distributed renewable energy capacity.
The programme builds on earlier electrification efforts that delivered more than 175 mini-grids and over 1.1 million solar home systems across the country.
Officials say the latest $83 million financing reflects growing investor confidence in Nigeria’s renewable energy sector and is expected to accelerate electricity access for millions of households and small businesses.