• Funding will support rollout of 315 solar mini-grids across underserved areas

• Project aims to connect about 2.9 million people to electricity

• Initiative targets Nigeria’s large and persistent power access gap

A new round of international financing aims to accelerate rural electrification in Nigeria through solar energy. On April 28, the International Finance Corporation (IFC), part of the World Bank Group, and Norway’s development finance institution Norfund announced a funding package of up to $83.2 million. The investment will support the deployment of hybrid solar mini-grids in partnership with five local companies, according to an official statement.

Expanding access to electricity

The initiative is designed to improve electricity access in underserved areas. It includes plans to develop 315 mini-grids, with a total project cost estimated at $271 million. These installations are expected to connect about 2.9 million people, including nearly 500,000 households and businesses.

A senior adviser to the Nigerian president on finance and the economy said scalable and sustainable solutions aligned with national priorities are needed to close the country’s electricity access gap, adding that partnerships like this one can help expand access while supporting economic growth and job creation.

A persistent structural deficit

Nigeria continues to face a major electricity access gap, with more than 85 million people not connected to the grid, according to the World Bank. This makes it the country with the largest unelectrified population globally.

The transmission network remains a key constraint. Much of the infrastructure is more than 60 years old, limiting the ability to deliver available power. The Transmission Company of Nigeria said it increased transmission capacity to 8,700 MW in 2025. However, installed capacity stands at 13,500 MW, while national demand is estimated at around 40,000 MW, according to the Energy Commission.

Decentralized solutions gain ground

In this context, decentralized energy solutions are taking on a larger role. The official “Nigeria Energy Compact” document, developed under the Mission 300 initiative, identifies distributed renewable energy as an immediate solution for more than 60 million Nigerians. This includes mini-grids in densely populated areas far from the grid and standalone solar systems in rural communities.

These alternatives are considered both the most cost-effective and the most suitable options for accelerating electrification in such areas.

Abdoullah Diop