Nigeria has made substantial strides in its efforts to enhance energy infrastructure, securing significant loans from the World Bank and the African Development Bank (AfDB) under the administration of President Bola Tinubu.
World Bank’s $750 Million Distributed Access through Renewable Energy Scale-up (DARES) Project:
On December 14, 2023, the World Bank approved the groundbreaking $750 million Distributed Access through Renewable Energy Scale-up (DARES) project in Nigeria. This ambitious initiative aims to revolutionize energy access and distribution across the country.
Implementation Partners and Collaborators:
The primary implementers of the DARES project include the Rural Electrification Agency (REA), the Lagos State Electricity Board (LSEB), and key government bodies such as the Federal Ministry of Power and the Nigerian Electricity Management Services Agency (NEMSA). Further support is derived from collaborative entities including the Global Energy Alliance for People and Planet, Japan International Cooperation Agency (JICA), United States Agency for International Development (USAID), German Development Agency (GIZ), Sustainable Energy for All (SEforAll), and the African Development Bank (AfDB).
Objectives and Impact:
The DARES program aims to provide over 17.5 million Nigerians with improved access to electricity through distributed renewable energy solutions, ultimately addressing the electricity access deficit. This comprehensive initiative will also assist the Federal Government in coordinating off-grid electrification efforts and bolster states’ capacity and policies to promote rooftop solar energy.
AfDB’s $500 Million Electricity Loan:
More recently, on July 31, 2024, the African Development Bank Group (AfDB) approved a substantial $500 million loan to the Federal Republic of Nigeria, marking another significant step forward in transforming the country’s electricity infrastructure and promoting cleaner energy sources.
Economic Governance and Energy Transition Support Program (EGET-SP):
This funding will cater to the first phase of the Economic Governance and Energy Transition Support Program (EGET-SP), focusing on decentralizing the electricity supply industry and attracting investments from subnational governments and the private sector. The initiative is attuned to support Nigeria’s new Electricity Act and the Nigeria Energy Transition Plan, addressing the country’s energy needs in a sustainable and forward-thinking manner.
Nigeria’s accomplishment in securing these substantial loans from the World Bank and AfDB demonstrates a resolute commitment to transforming its energy landscape and meeting the escalating demands for reliable and sustainable power sources.