On December 14, 2023, the World Bank approved a $750 million loan for the Distributed Access through Renewable Energy Scale-up (DARES) project in Nigeria.
This project aims to improve access to electricity, particularly in underserved areas, through renewable energy solutions. The funding is divided into three segments, focusing on various aspects of the initiative, which will be managed by the Rural Electrification Agency (REA) and the Lagos State Electricity Board (LSEB), with oversight from federal agencies.
The $750 million loan is expected to attract over $1 billion in private investment, with additional contributions from partners like the Global Energy Alliance for People and Planet and the Japan International Cooperation Agency (JICA). The DARES program aims to provide over 17.5 million Nigerians with improved electricity access, particularly through off-grid electrification and rooftop solar energy.
In addition to this, on July 31, 2024, the AfDB approved a $500 million loan to support the first phase of the Economic Governance and Energy Transition Support Program (EGET-SP). This loan will help upgrade Nigeria’s electricity infrastructure and expand access to cleaner energy sources. It will also help address the funding gap in Nigeria’s Federal Budget for the 2024/25 fiscal year and support the implementation of the country’s new Electricity Act and Energy Transition Plan.
Despite these significant investments, Nigeria’s power sector continues to face challenges, as previous loans have not fully resolved the ongoing issues in electricity distribution and supply. However, the DARES and EGET-SP initiatives offer renewed hope for substantial improvements in the country’s energy landscape.
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