African most populous nation, Nigeria, has entered into a $200 million agreement with WeLight, a pan-African Distributed Renewable Energy (DRE) company, to deploy hundreds of renewable mini grids.
The agreement aims to provide reliable electricity to millions of people in rural communities and areas surrounding urban centers.
Nigeria is working to increase the share of renewable energy in its electricity mix from 22% to 50%.
The deal is seen as a significant step toward achieving this goal, with financing secured through private investments.
The project, supported by the World Bank and the African Development Bank, will involve the development and operation of 400 mini grids and 50 MetroGrids across Nigeria’s predominantly rural regions.
It is expected to improve electricity access for an estimated 1.5 to 2 million people and stimulate local economies.
WeLight, which is backed by major international entities such as Axian Group, Sagemcom, and Norfund, signed a Memorandum of Understanding (MOU) with Nigeria’s Rural Electrification Agency (REA) on March 10, 2025.
The REA is a government agency responsible for expanding electricity access to millions of Nigerians in the rural communities currently without power.
Romain de Villeneuve, Chief Executive Officer of WeLight, stated, “This MOU not only represents a leap toward providing clean electricity to millions in Nigeria but also supports WeLight’s ambition to become a truly pan-African company.”
The Managing Director of the REA, Abba Aliyu, said the agreement “marks a new era” of energy access, boosting affordability, reliability and independence for homes, businesses and communities across Nigeria
The REA’s primary objective is to provide electricity to unserved and underserved communities through grid extension, mini-grids, and standalone renewable energy systems.
One of the flagship initiatives under the Rural Electrification Agency (REA) was the Nigeria Electrification Project (NEP). It’s a $550 million program co-funded by the World Bank and the African Development Bank (AfDB).
The project aimed to increase access to electricity in rural and peri-urban communities by deploying solar hybrid mini-grids and solar home systems.
Moreover, the REA pledged that 30 million Nigerians will be provided with isolated mini grids, 1.5 million with inter-connected mini grids, and 12 million with mesh grids and standalone home systems.
The agency has also disclosed plans to deliver 370MW of clean energy across Nigeria, targeted at 100 rural communities.
