FG Taps $1.45 Billion in Loans to Drive Renewable Energy Revolution

Victoria Mbangwa

In a bold move to tackle Nigeria’s chronic power supply challenges, the Federal Government has unveiled plans to prioritize renewable energy solutions, leveraging a combined $1.45 billion in funding from the World Bank and the African Development Bank (AfDB).

The strategy marks a shift from reliance on the national grid to decentralized and sustainable energy systems aimed at powering rural communities and critical sectors such as education, health, agriculture, and transportation.

The government’s flagship initiatives, including the e-HEART project and the “Desert to Power” program, are designed to address the energy needs of an estimated 80 million Nigerians currently without access to electricity. These programs will utilize renewable energy sources such as solar power to create economic opportunities, enhance service delivery, and reduce migration from rural to urban areas.

Speaking at a stakeholder engagement workshop organized by the Rural Electrification Agency (REA), Minister of Power Adebayo Adelabu emphasized the importance of off-grid solutions in closing Nigeria’s electricity supply gap. Represented by Dr. Sunday Owolabi, Director of Renewable and Rural Power Access, Adelabu highlighted the government’s Distributed Access through Renewable Energy Scale-up (DARES) program, a $750 million World Bank-supported project targeting over 13 million Nigerians.

He said, “At the recent Federal Executive Council, FEC, His Excellency approved N161 million worth of contracts for the upgrade of power substations under the Presidential Power Initiative, PPI. I am happy to assure you that we are on course to deliver an additional 150MW to the grid while impacting 14 existing substations and establishing 21 new ones.

“The team at the Rural Electrification Agency, REA, have also been hard at work as we approach the kick-off of the Distributed Access through Renewable Energy Scale-up, DARES, programme, which I believe many of you must have heard about. Our partners at the World Bank have committed $750 million to this groundbreaking project and we are certain that over 13 million Nigerians will be impacted through the DARES (Distributed Access through Renewable Energy Scale-up)”.

Engr. Abba Aliyu, Managing Director/CEO of the REA, underscored the progress made under the Rural Electrification Fund, which has so far deployed 124 mini-grids and over 25,580 solar home systems, benefitting 183 communities and 12 markets.

Aliyu also praised the enactment of the new Electricity Act, signed by President Bola Tinubu, as a transformative step in decentralizing the energy sector. The legislation empowers state and local governments to play a more active role in electricity provision, creating opportunities for partnerships with the private sector.

“I want to state that there was never a time in this country that the renewable energy sector has received the level of attention and support that we are getting from this government. The first act the President signed when he assumed office is the Electricity Act and this is the reason why we are here.

‘’It is the basis why all the commissioners from the states are here and it is the reason why we have much more opportunities for states and local governments to get involved in the electricity sector,” he said.

Leave a Reply

Your email address will not be published. Required fields are marked *