The loan, approved in December 2023 under the Distributed Access through Renewable Energy Scale-up (DARES) project, will be used to subsidize solar mini-grid developers and operators.

“This initiative aims to improve electricity supply for households and businesses by supporting private sector-led renewable energy projects,” a government spokesperson said.

The project will also provide performance-based grants to qualified mini-grid operators, incentivizing them to connect more customers.

 

The loan itself is divided into three parts, with the Rural Electrification Agency (REA) and the Lagos State Electricity Board (LSEB) leading implementation.

The DARES project builds on Nigeria’s growing commitment to renewable energy. Over the past decade, the country has attracted more than $2 billion in investments for the sector, according to the Rural Electrification Agency.

This initiative comes alongside recent changes to Nigeria’s electricity sector. 

 

While the government seeks to expand access to power through renewables, it has also implemented a 240% increase in electricity tariffs for urban residents.