A new initiative led by the International Finance Corporation (IFC), a member of the World Bank Group, in partnership with Norfund aims to expand access to reliable, renewable electricity for nearly 500,000 households and businesses in underserved communities across Nigeria. The program focuses on scaling off-grid and distributed energy solutions to strengthen local economies, support small enterprises, and create jobs across energy value chains. It supports five renewable energy companies operating across the country, which are developing solar hybrid mini-grids and last-mile electricity connections in areas not served by the national grid.
The initiative is backed by a combined financing package of up to US$83.2 million, including concessional funding from the International Development Association’s Private Sector Window and IFC’s own concessional capital mechanisms. With a total project value of approximately US$271 million, the effort will support the rollout of hundreds of mini-grid sites and connect millions of people to electricity, significantly expanding energy access in Africa’s largest economy.
Nigeria continues to face a major electricity access gap, with more than 85 million people lacking reliable power and many connected households experiencing frequent outages. This has increased dependence on costly and polluting diesel generators while limiting productivity and private sector growth. By expanding distributed renewable energy systems, the initiative aims to provide more stable and affordable electricity, reduce energy costs, and enable income-generating activities in underserved regions.
The program is also designed to attract further private investment through a platform-based financing approach aligned with broader World Bank Group energy access strategies. It emphasizes inclusive development, including support for women-led businesses, and seeks to strengthen the broader clean energy ecosystem in Nigeria. Partners involved in the initiative highlight its role in accelerating scalable, sustainable energy solutions that can improve livelihoods and drive long-term economic growth.
Overall, the project represents a significant step toward closing Nigeria’s electricity access gap by combining public and private financing to expand renewable energy infrastructure and support economic development in underserved communities.
