FG targets 5.2m new power connections under $750m World Bank programme

By: Amarachi Okonkwo

The Federal Government is targeting the connection of 5.2 million Nigerians to electricity by June 2026 under a $750 million intervention backed by the World Bank, as part of efforts to expand energy access through renewable solutions.

This is contained in the latest Implementation Status and Results Report for the Nigeria Distributed Access through Renewable Energy Scale-up (DARES) project, which indicates steady progress since the programme’s approval in December 2023.

According to the report, about 9 per cent of the total $750 million funding has been disbursed so far, while $422.2 million has already been fully committed, signalling strong early-stage financial mobilisation.

The bank disclosed that the project has delivered electricity access to over 3.6 million Nigerians as of March 2026, putting it on track to meet and exceed its near-term targets.

“To date, over 3.6 million people have been provided with access to electricity… The project is on track to connect 5.2 million people to electricity by June 2026,” the report stated.

The June 2026 milestone is expected to surpass the Mission 300 Financial Year target of 3.2 million connections, underscoring accelerated implementation momentum.

DARES is designed to boost electricity access for households and Micro, Small, and Medium Enterprises through private sector-led distributed renewable energy systems. Its core components include solar hybrid mini-grids, standalone solar home systems, and technical assistance aimed at strengthening institutional and regulatory capacity.

Beyond access expansion, the project is also making measurable gains in generation capacity. Installed renewable energy capacity has risen to 38.76 megawatts as of March 2026, against a long-term target of 465 megawatts by 2028.

The report further highlighted growing penetration of solar home systems and mini-grid connections across underserved communities, alongside ongoing efforts to crowd in private investment and improve the enabling environment for off-grid energy solutions.

Despite these gains, the World Bank flagged overall project risk as “substantial,” citing persistent macroeconomic pressures, governance constraints, and institutional capacity challenges that could affect execution.

The DARES programme is scheduled to run through December 2028, with an end target of delivering electricity access to more than 16 million Nigerians.

Nigeria’s reliance on concessional multilateral financing remains significant. Data from the Debt Management Office shows that the country’s exposure to the World Bank stood at $19.54 billion as of September 30, 2025.

This includes $18.18 billion from the International Development Association and $1.36 billion from the International Bank for Reconstruction and Development.

The exposure represents 40.34 per cent of Nigeria’s total external debt stock of $48.46 billion, reinforcing the bank’s position as the country’s largest multilateral creditor and a key partner in infrastructure and development financing.