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FG Targets 5.2M Electricity Connections with $750M Loan


The Federal Government is targeting the connection of 5.2 million Nigerians to electricity by June 2026 under a $750m World Bank-backed intervention aimed at expanding access through renewable energy solutions.

This is according to the latest Implementation Status and Results Report of the World Bank’s Nigeria Distributed Access through Renewable Energy Scale-up Project obtained from the bank’s website.

The report stated that the programme, also known as DARES, is progressing steadily, with significant milestones already recorded in expanding electricity access across the country.

It noted, “The DARES programme implementation is in progress, with 9 per cent of total programme financing of $750m disbursed,” adding that “about $422.2m out of the total programme funds is fully committed.”

The World Bank disclosed that the project has already delivered electricity access to millions of Nigerians, while remaining on track to meet its near-term targets.

“To date, over 3.6 million people have been provided with access to electricity… The project is on track to connect 5.2 million people to electricity by June 2026,” the report stated.

It further noted that the June 2026 milestone exceeds earlier projections, adding that the programme would “surpass Mission 300 end of Financial Year target of 3.2 million people.”

The project, approved in December 2023, is designed to increase electricity access for households and Micro, Small, and Medium Enterprises through private-sector-driven distributed renewable energy systems.

According to the World Bank, “The project development objective is to increase access to electricity services for households and MSMEs with private sector-led distributed renewable energy generation.”

The intervention is structured around key components, including solar hybrid mini-grids, standalone solar systems for households and businesses, and technical assistance to strengthen implementation capacity.

The report shows measurable progress across key indicators, with over 3.6 million people already benefiting from new electricity access as of March 2026, compared to an end target of more than 16 million by 2028.

The report also highlighted gains in renewable energy capacity, which rose to 38.76 megawatts as of March 2026, with a long-term target of 465 megawatts.

In addition, thousands of households and businesses have been connected through solar home systems and mini-grid solutions, while efforts continue to mobilise private-sector investment and strengthen regulatory frameworks.

Despite the progress, the World Bank maintained that overall project risk remains “substantial,” citing macroeconomic, governance, and institutional capacity challenges. The project is expected to run through December 2028, with total funding spread across multiple financing windows under the International Development Association.

Nigeria often relies on concessional multilateral financing to support infrastructure and development programmes. Data from the Debt Management Office shows that Nigeria’s exposure to the World Bank Group stood at $19.54bn as of September 30, 2025, comprising $18.18bn from the International Development Association and $1.36bn from the International Bank for Reconstruction and Development.

This represents about 40.34 per cent of Nigeria’s total external debt stock of $48.46bn, showing the World Bank’s dominant position among the country’s creditors.

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