The Rural Electrification Agency (REA) has secured $950 million in funding to expand Nigeria’s Distributed Access through Renewable Energy Scale-up (DARES) program.
Managing Director of REA, Abba Abubakar Aliyu, announced this during a renewable energy service agreement signing in Abuja with nine companies.
The Federal Government remains committed to enhancing electricity access for 86 million Nigerians currently without reliable power supply.
The deal involves companies such as Ashipa Electric Ltd, De-Janees Concepts Ltd, Fox Power Ltd, and MBH Power Ltd.
Other firms are Okra Solar PTY Ltd, Oando Clean Energy, Sosal Renewable Energy Ltd, and Welight Nigeria Ltd.
Aliyu revealed that $750 million came from the World Bank, while Japan’s International Development Corporation (JICA) provided an additional $200 million.
The Nigerian government has mandated REA to position the country as the leading renewable energy hub in West Africa.
Aliyu emphasized that achieving this goal requires financing, projects, operational frameworks, and a strong domestic value chain.
The $750 million DARES project is Sub-Saharan Africa’s largest public-sector-funded renewable initiative, already in its implementation phase.
REA has initiated 14 interconnected mini-grids designed to improve reliability and serve as a foundation for future interventions.
To reduce governance costs, the government secured an additional ₦100 billion to solarize public sector institutions across Nigeria.
Discussions with JICA for additional co-financing resulted in $200 million, bringing total DARES funding to $950 million.
The project aims to provide electricity to 17.5 million Nigerians through mini-grids, standalone solar systems, and mesh-free technology.
Three million Nigerians will benefit from isolated mini-grids, while 1.5 million will access power through interconnected mini-grids.
Approximately 12 million people will receive electricity through standalone solar systems and mesh-free renewable energy solutions.
Oando Clean Energy’s President, Ademola Ogunbanjo, disclosed plans to invest heavily in Nigeria’s renewable energy market.
Over the next year, Oando Clean Energy plans to roll out 600MW power lines across various locations within the sector.
The company is also building a solar panel production facility that will include a recycling plant for used solar panels.
