Economy
World Bank Group to electrify Sub-Saharan Africa with renewable energy
The World Bank Group said it has introduce an innovative initiative to accelerate the pace of electrification in Africa to achieve universal access by 2030. The World Bank, the Multilateral Investment Guarantee Agency (MIGA), the International Finance Corporation (IFC), and other development agencies will promote private investment in distributed renewable energy (DRE) systems to electrify targeted areas quickly and efficiently. The Distributed Access through Renewable Energy Scale-Up Platform (DARES) calls for joint action by government, private investors, and development agencies to solve Africa’s immediate needs while developing DRE solutions that can be applied globally.
At current rates of electrification, over a half billion people in Sub-Saharan Africa (SSA) will still be without electricity in 2030 unless the current electrification pace is tripled. Present projections indicate that only eight SSA countries will achieve universal electricity access by 2030, and some will take over 100 years to fully electrify. The lack of energy access greatly inhibits green, resilient, and inclusive development of many countries in SSA. The expansion of access through DRE systems will answer an urgent need quickly and support climate resilience, food security, and human capital development goals. DRE systems generally involve a solar photo-voltaic station paired with battery storage. In rural communities, these systems can serve a health care facility, for example, or a group of customers such as households or businesses in a village, operating independently from the national power grid. DRE systems can be easily installed, are reliable, and do not require the large investment needed to build a utility-scale power plant.
“Now more than ever we need innovative solutions that close the energy access gap,” said Riccardo Puliti, World Bank Vice President for Infrastructure. “Bringing together government and the private sector to support distributed renewable energy can help extend electrification to the most vulnerable while also advancing clean energy.” DRE is the fastest and most cost-effective mechanism to accelerate clean electricity access on the continent. Over the last 10 years, 20 percent of all new electric connections in SSA have been through DRE systems. While DRE is now attracting private sector financing, this support is not at the scale that is needed. DARES will leverage this positive momentum to work with governments and the private sector to expand DRE investment. The World Bank Group is well-positioned to take the lead in scaling the DRE sector in SSA, using a different approach from traditional infrastructure investments to incentivise private financing commitment.
“MIGA is in a strong position to support private investment through new and innovative risk mitigation solutions that are fit-for-purpose for the unique risk faced by investors,” said Hiroshi Matano, MIGA Executive Vice President. “We look forward to working with Sub-Saharan African countries to create opportunities to combine public and private investment approaches to electrify Africa in the near future.” DARES will leverage World Bank, MIGA, and IFC expertise to create a joint cross-sectoral approach to develop innovative financial and de-risking instruments to be rolled out at a regional level. The platform also provides for significant technical assistance for governments and the private sector and differentiated approaches consistent with unique country contexts and markets. A key goal in this respect is to tackle barriers to private sector participation to give SSA countries the ability to mobilise DRE systems faster, while making them, greener, more resilient, and inclusive.
DARES will have five core areas: mini-grids, off-grid solar markets, systems for schools and health facilities, solar irrigation and cold chain for farmers, and innovative business models to displace diesel generation and improve access reliability.
“Investing in distributed renewable energy is one of the most efficient ways to tackle energy access challenges and to support economic activities in Africa while addressing greenhouse gas emissions,” said Emmanuel Nyirinkindi, IFC Vice President of Cross-Cutting Solutions. “Mini-grid systems are one example of DRE and can efficiently deliver energy to cities and rural areas outside the limits of a national grid.”
The World Bank has an active portfolio of $2.7 billion for DRE access, targeting electrification of about 40 million people. IFC has initiated the Scaling Mini Grids Program and is building on its Lighting Africa Engagement. MIGA has $83 million in DRE guarantees and a $400 million pipeline. MIGA is developing “fit-for-purpose” instruments that address the unique risks faced by distributed energy investors and is actively engaging with partners to bring together complementary solutions for its DRE clients.
DARES responds to United Nations Sustainable Development Goal 7, which calls for “affordable, reliable, sustainable, and modern energy for all” by 2030. These core targets are at the platform’s foundation to ensure universal access to Sub-Saharan-Africa. The impact of this initiative goes beyond electrifying Africa. Electricity is the foundational enabler to address other critical initiatives such as food insecurity, gender equality, climate resilience, and health. Electrification will open more options to solve these issues.
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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