The Federal Government of Nigeria, through the Rural Electrification Agency (REA), announced on Wednesday that it will spearhead a US$188 million financing facility to fund a 191‑megawatt solar‑power programme aimed at expanding electricity access in rural communities.
The fund is being assembled in partnership with First City Monument Bank, Barton Heyman, the United Kingdom’s PACT (Powering African Clean Transitions), and ARM‑Harith Infrastructure Investment Ltd. It will be housed within the Green Finance Investment Facility, a government‑backed vehicle designed to channel private capital into renewable‑energy projects across the country.
Abba Aliyu, Managing Director of the REA, said the initiative addresses “one of the sector’s most pressing constraints – access to finance.” He noted that the Green Finance Investment Facility is structured to reduce investment risk, attract long‑term funding and accelerate the deployment of clean‑energy infrastructure in underserved areas.
Stakeholders present at the launch echoed the view that reliable financing is essential for scaling renewable projects. They highlighted that the facility will pool resources from both domestic and international investors, thereby creating a more predictable funding environment for solar developers and enabling faster construction of power plants that can be connected to local grids.
Nigeria’s rural electrification drive has long been hampered by limited financial options, high project costs and regulatory bottlenecks. By mobilising a substantial pool of capital, the government hopes to speed up the rollout of off‑grid and mini‑grid solar solutions, which are seen as pivotal for achieving the country’s broader energy‑transition goals and for meeting its commitments under the Paris Agreement.
If successful, the US$188 million fund could unlock additional private‑sector investment, lower the cost of solar electricity for rural households and support economic activities that depend on stable power supply. The REA expects the financing mechanism to be operational within the next few months, with the first tranche earmarked for the construction of solar farms that will feed into community mini‑grids in selected states.
The launch marks a significant step toward diversifying Nigeria’s energy mix and reducing reliance on diesel‑powered generators, which dominate many remote areas. As the facility takes shape, attention will turn to how quickly projects can move from planning to commissioning, and whether the financing model can be replicated for other renewable‑energy capacities, such as wind or hydro, in the future.
The upcoming months will reveal the facility’s impact on rural power supply, investment flows and Nigeria’s overall clean‑energy trajectory.
