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World Bank Approves $750M for Nigeria’s Largest-Ever Clean Energy Initiative

The World Bank has approved a $750 million credit to support clean energy initiatives in Nigeria. 

The initiative aims to enhance electricity accessibility in Africa’s most populous nation.

The bank disclosed this information on Friday, emphasizing that over 85 million people lacked electricity access in Nigeria as of 2021. 

As a result, they have been relying on costly diesel and petrol generators for households and businesses.

The initiative, known as the Distributed Access through Renewable Energy Scale-up (DARES) project, will also receive funding from the International Development Association.

It aims to mobilize over $1 billion in private capital and financing from development partners.

The goal is to provide new or improved electricity supplies to more than 17.5 million Nigerians.

Impact of DARES Project on Access to Clean Energy

Shubham Chaudhuri, the World Bank Country Director for Nigeria, highlighted that this project represents the largest-ever single distributed energy initiative by the World Bank.

“We are committed to expanding clean energy-based access in Nigeria, with USD $750 million

“Nigeria DARES project is the largest ever single distributed energy project of the World Bank globally.

“It will benefit over 17.5 million unserved, underserved, rural, and remote Nigerians through the deployment of standalone solar and mini grids. 

“Additionally, it will replace more than 280,000 polluting and expensive petrol and diesel generator sets.

“This is an important step for Nigeria towards achieving its energy transition targets,” he added.

Chaudhuri further stated that through the DARES project, Nigeria aims to empower up to 237,000 MSMEs by providing them with reliable and clean electricity.

He added that this will be important for productive purposes, enhancing their potential to generate income and create local jobs.

Moreover, the Bank revealed that to further address the access gap, DARES will build on the achievements of the World Bank-financed Nigeria Electrification Project (NEP). 

This initiative has already facilitated the establishment of 125 mini-grids and the sale of over a million Solar Home Systems. 

Also Read: World Bank Commits $12B Aid to Kenya for Three years

As a result, more than 5.5 million Nigerians have gained access to electricity.

The minister of power in Nigeria, Adebayo Adebalu expresses his excitement about innovative financial instruments like the DARES program.

“The ripple effect reaches unserved and underserved communities, unlocking access to a realm of clean and equitable energy for all. 

“It’s a powerful journey of empowerment and transformation,” he concluded.