The Federal Government has approved a ₦130 billion investment programme to expand electricity access for Micro, Small and Medium-sized Enterprises (MSMEs) across Nigeria’s North-East region. The initiative is designed to provide reliable and affordable power to businesses, stimulate industrial development, improve productivity, and support economic recovery in one of the country’s most underserved regions.
The programme will be implemented through the Rural Electrification Agency (REA) under the Distributed Access through Renewable Energy Scale-up (DARES) programme. It will finance the deployment of renewable energy solutions including solar mini-grids, standalone solar systems, and other distributed energy infrastructure to power markets, industrial clusters, business hubs, and productive enterprises across the six North-East states.
According to the Federal Government, the investment is expected to improve electricity access for thousands of MSMEs that currently rely on expensive diesel and petrol generators. By lowering energy costs and improving the reliability of power supply, the programme aims to enhance business productivity, increase profitability, and strengthen the competitiveness of small businesses operating in sectors such as manufacturing, agro-processing, trade, and services.
Government officials noted that expanding access to clean and reliable electricity is central to the country’s broader economic diversification agenda. The initiative is expected to encourage entrepreneurship, create employment opportunities, support local value addition, and improve livelihoods across the North-East, where many businesses continue to face significant energy constraints.
The investment also aligns with Nigeria’s transition towards renewable energy by promoting the use of clean power technologies in commercial and industrial activities. Increased deployment of distributed renewable energy systems is expected to reduce greenhouse gas emissions, lower dependence on fossil-fuel generators, and improve environmental sustainability while strengthening energy security.
The North-East programme forms part of the Federal Government’s wider strategy to bridge Nigeria’s electricity access gap through public-private partnerships and innovative financing mechanisms. By supporting productive uses of energy, the initiative seeks to unlock new economic opportunities, attract private investment, and accelerate regional development.
Industry experts have welcomed the approval, noting that access to affordable electricity remains one of the biggest constraints facing MSMEs in Nigeria. They believe the investment could significantly reduce operating costs for businesses, improve output, and encourage the establishment of new enterprises across the region, particularly in agriculture, light manufacturing, and commerce. The programme reinforces the Federal Government’s commitment to leveraging renewable energy as a catalyst for inclusive economic growth. By expanding electricity access to MSMEs, the initiative is expected to strengthen the North-East’s economic resilience, promote industrialisation, and contribute to sustainable development in the region.
