FG Leverages $750M World Bank Loan To Boost Nigeria’s Power Supply

The Federal Government of Nigeria is taking significant steps to address the country’s persistent power supply challenges with the support of a $750 million loan from the World Bank. This initiative prioritizes renewable energy as a solution to bolster electricity access for critical sectors like education, health, agriculture, rural communities, and transportation.

With approximately 80 million Nigerians lacking access to electricity, the government has introduced the e-HEART project, designed to deploy mini-grids to rural areas. This effort aims to foster sustainable economies and curb rural-urban migration by providing reliable energy access.

Renewable Energy at the Forefront

The government has also allocated an additional $700 million from the African Development Bank (AfDB) for the “Desert to Power” project. This initiative taps into the abundant solar resources in northern Nigeria to generate renewable energy for local communities.

At a recent stakeholder workshop hosted by the Rural Electrification Agency (REA), the Minister of Power, Adebayo Adelabu, underscored the importance of off-grid electricity as a core strategy for bridging Nigeria’s energy gap. Represented by Dr. Sunday Owolabi, Director of Renewable and Rural Power Access, the minister highlighted the anticipated impact of various renewable energy projects on at least 13 million Nigerians.

Adelabu added that the Federal Executive Council (FEC) approved ₦161 million worth of contracts under the Presidential Power Initiative (PPI) to upgrade power substations. These upgrades are expected to deliver an additional 150MW to the national grid, impacting 14 existing substations and establishing 21 new ones.

Distributed Access Through Renewable Energy

The REA, in collaboration with the World Bank, is set to roll out the DARES (Distributed Access through Renewable Energy Scale-up) program. This groundbreaking project, backed by a $750 million commitment, aims to benefit over 13 million Nigerians through renewable energy solutions.

Engr. Abba Aliyu, Managing Director/CEO of REA, shared that the Rural Electrification Fund has so far deployed 124 mini-grids and 25,580 solar home systems with a combined capacity of 16.6MW. These efforts have facilitated 195,198 connections across 183 communities and 12 markets.

Expanding Impact

Aliyu also announced plans to deliver uninterrupted power supply to:

3,700 primary healthcare centers.
25 schools per state and the FCT.
25 rural communities per state and the FCT.
Solar-powered tricycles and charging stations nationwide.

He commended the government’s commitment to renewable energy, noting that the Electricity Act, signed by President Tinubu, has opened new opportunities for states and local governments to participate in Nigeria’s electricity sector.

Call to Action

Aliyu urged sub-national governments and private investors to collaborate with the federal government to ensure a sustainable and quality power supply across the country.