The Federal Government has unveiled a $300 million funding initiative under its Light Up Nigeria programme to expand electricity access and address power supply challenges in communities that remain disconnected from the national grid.

The intervention is designed to support the deployment of off-grid and distributed renewable energy solutions, with emphasis on communities and areas where extending conventional grid infrastructure remains difficult.

The initiative forms part of broader government efforts to improve electricity access, strengthen energy infrastructure and reduce the impact of persistent power shortages on households, businesses and productive activities.

The Light Up Nigeria programme has also been linked to efforts to provide more reliable electricity to industrial clusters and agricultural hubs, where inadequate power supply has continued to affect production and operating costs.

Under the programme, investments are expected to support the development of alternative electricity systems capable of supplying communities outside the reach of existing grid infrastructure.

The Federal Government’s renewed focus on off-grid solutions comes amid continuing challenges across Nigeria’s electricity value chain, including transmission limitations, gas supply constraints, distribution losses and liquidity problems.

Recent sector reports have also highlighted the persistent gap between available generation and the amount of electricity ultimately delivered to distribution companies and consumers.

The government is expected to work with relevant agencies and private-sector partners to deploy the funds and accelerate electricity projects in underserved areas.

The initiative is expected to complement existing renewable-energy programmes, including projects involving mini-grids and other distributed energy systems aimed at extending electricity access to millions of Nigerians.

Officials say the broader objective is to create a more reliable electricity supply system while supporting economic activity, reducing dependence on petrol and diesel generators and improving living conditions in communities affected by inadequate power supply.

The development comes as the Federal Government continues its efforts to reform the power sector and increase investment in generation, transmission and distribution infrastructure.