The Rural Electrification Agency (REA) has secured $950 million in funding for the Distributed Access through Renewable Energy Scale-up (DARES) program, aimed at expanding Nigeria’s renewable electricity supply.
REA’s Managing Director, Mr. Abba Abubakar Aliyu, announced this yesterday in Abuja during a collaborative agreement signing with nine renewable energy companies. He emphasized the Federal Government’s commitment to providing electricity access to 86 million Nigerians currently living without power.
The deal includes partnerships with Ashipa Electric Ltd, De-Janees Concepts Ltd, Fox Power Ltd, MBH Power Ltd, Okra Solar PTY Ltd, Oando Clean Energy, Sosal Renewable Energy Ltd, and Welight Nigeria Ltd.
Major Funding Secured for Renewable Energy Expansion
Aliyu highlighted that the government secured $750 million from the World Bank last year and an additional $200 million from the Japan International Cooperation Agency (JICA) in February 2025.
“Our mandate is to position Nigeria as the renewable energy hub in West Africa,” Aliyu stated. “To achieve this, we need substantial financing, scalable projects, effective implementation strategies, and a robust operational framework.”
He further noted that the government has initiated the $750 million DARES project, marking it as the largest publicly funded renewable energy initiative in sub-Saharan Africa. The project has already commenced with 14 interconnected mini-grids, ensuring reliable electricity supply for underserved communities while serving as a foundation for broader interventions.
Solarizing Public Institutions & Expanding Reach
To reduce the cost of governance and promote sustainability, Aliyu revealed that the government secured an additional ₦100 billion to solarize public sector institutions, with implementation set to begin in the coming weeks. He also confirmed ongoing discussions for further co-financing, potentially increasing the total DARES funding to over $1 billion.
The DARES project is projected to provide electricity to 17.5 million Nigerians through various solutions:
- 3 million people via isolated mini-grids
- 1.5 million people via interconnected mini-grids
- 12 million people via mesh-free and standalone solar systems
Oando Clean Energy to Boost Solar Panel Production
Speaking at the event, the President/CEO of Oando Clean Energy, Ademola Ogunbanjo, highlighted the company’s significant investments in the renewable sector. He revealed plans to roll out 600MW of solar lines within the next year.
“Our facility will not only manufacture solar panels but also establish a recycling system for used panels, ensuring a sustainable energy ecosystem,” Ogunbanjo said.