The Federal Government has unveiled a plan to deliver 5.2 million new electricity connections across Nigeria, backed by a $750 million loan secured from the World Bank. The initiative is part of a broader effort to expand access to power, particularly in underserved and off grid communities, where millions still lack reliable electricity.
The funding will be deployed under the Distributed Access through Renewable Energy Scale up programme, designed to stimulate investment in off grid and mini grid solutions. The project prioritises households, small businesses, educational institutions, and healthcare facilities that currently operate without dependable power supply.
Officials say the programme is structured to attract private sector participation by offering subsidies and financial support to developers. These incentives are expected to reduce the cost of deploying solar hybrid systems and mini grids, making electricity access more viable in rural and semi urban areas.
The government’s target of 5.2 million connections reflects a strategic push to close Nigeria’s significant electricity access gap. Despite being Africa’s largest economy, the country still has one of the highest numbers of people without electricity globally. Previous estimates indicate that tens of millions of Nigerians remain unconnected to the national grid, especially in rural regions.
Under the current plan, the loan will not only support infrastructure deployment but also strengthen the overall energy ecosystem. This includes improving reliability, encouraging renewable energy adoption, and reducing dependence on petrol and diesel generators, which remain widespread among households and businesses.
The initiative is also expected to deliver broader economic benefits. Improved electricity access can boost productivity, lower operating costs for small and medium sized enterprises, and enhance service delivery in critical sectors such as healthcare and education. By targeting off grid communities, the programme aims to unlock economic activity in areas that have long been constrained by energy poverty.
In addition, the project aligns with ongoing reforms in Nigeria’s power sector. Authorities have been working to restructure the industry, attract investment, and improve cost recovery, while balancing the need to protect vulnerable consumers. The introduction of targeted subsidies and financing mechanisms reflects an effort to make the sector more sustainable in the long term.
The $750 million facility forms part of a wider financing strategy by the government to mobilise resources for energy access expansion. Over time, such interventions are expected to complement grid based investments and accelerate the transition toward cleaner and more distributed energy systems.
Ultimately, the success of the programme will depend on effective implementation, transparency, and sustained collaboration between public institutions and private investors. If executed as planned, the initiative could mark a significant step toward reducing Nigeria’s electricity deficit and improving living standards for millions of citizens.
