Nigeria’s off-grid electricity sector has received a significant boost following the securing of approximately $83 million in International Finance Corporation (IFC)-backed financing under the Distributed Access through Renewable Energy Scale-Up (DARES) programme.
The financing agreements, signed on the sidelines of the 2026 World Bank Group and IMF Spring Meetings, are expected to accelerate the deployment of mini-grids and solar home systems in underserved communities across the country, bringing reliable electricity to millions of Nigerians currently without access to power.
The investment marks a major transition from small-scale renewable energy pilots to large-scale commercial deployment, underscoring growing investor confidence in Nigeria’s distributed energy market.
Among the first beneficiaries of the programme are Darway Coast, PriVida Power, Prado Power, GVE Projects and StarTimes Smart Energy, which have secured financing under the first phase of the initiative.
A second group of developers Ashipa Energy, Eauxwell Nigeria, Ignite Power, Maskh Nigeria, Nayo Tropical Resources and Paras Energy has also been added to the financing pipeline, reflecting the expanding depth and maturity of Nigeria’s renewable energy ecosystem.
The transactions fall under the DARES programme, a $750 million World Bank-supported initiative being implemented by the Rural Electrification Agency (REA) to expand electricity access through privately delivered renewable energy solutions.
Structured as a revolving debt facility and backed by the IFC, the financing mechanism is designed to provide longer-term capital to developers operating in a sector historically constrained by limited access to affordable financing.
IFC Managing Director, Makhtar Diop, described the initiative as a model for unlocking investment across Africa’s energy sector.
“This demonstrates how blended finance can address ecosystem constraints at scale. Nigeria is leading the way, and we are already looking to replicate this success across the continent,” Diop said.
Representing the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Special Adviser to the President on the Economy, Sanyade Okolie, said attracting investment remains central to the Federal Government’s economic transformation agenda.
“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,” Okolie said.
He added that strengthening investor confidence and improving the investment climate remain among the government’s most sustainable pathways to economic growth and job creation.
Head of the Nigeria Electrification Programme and DARES Project Lead, Olufemi Akinyelure, described the financing milestone as evidence that distributed renewable energy has evolved into a commercially viable market segment.
“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,” he said.
Minister of Communications, Innovation and Digital Economy, Bosun Tijani, linked the investment momentum to President Bola Tinubu’s ambition of building a $1 trillion economy, noting that expanding critical infrastructure remains essential to unlocking long-term economic growth.
Chief Executive Officer of Sustainable Energy for All, Damilola Ogunbiyi, said the programme demonstrates how innovative financing structures can accelerate energy access and drive sustainable development.
“It is encouraging to see Nigeria leading the pathway for innovative financing under Mission 300. DARES is showing how the right structures can unlock scale, accelerate deployment and deliver real impact for millions,” she said.
Industry analysts say the transaction reflects a broader transformation within Nigeria’s power sector, where distributed renewable energy is increasingly emerging as a practical and scalable alternative to a national grid struggling to meet rising electricity demand.
The financing platform is expected to mobilise more than $150 million in current and future investments, supporting hundreds of renewable energy projects and extending electricity access to over five million Nigerians.
The wider DARES programme has already provided electricity access to more than 4.1 million people and is targeting over 17.5 million beneficiaries by 2028. The initiative is also expected to deliver approximately 465 megawatts of renewable energy capacity nationwide, further strengthening Nigeria’s transition towards a more resilient, inclusive and sustainable energy future.
