The Islamic Development Bank (IsDB) has approved US$150 million in financing for a solar energy project in Nigeria’s Niger State as part of efforts to expand renewable power generation and improve electricity reliability.
The approval was announced following the 367th meeting of the IsDB Board of Executive Directors held in Baku, Azerbaijan.
The Niger State Solar Energy Development Project is expected to support the expansion of clean energy capacity, diversify Nigeria’s energy mix and contribute to the country’s climate change mitigation efforts.
According to the IsDB, the project aims to improve the reliability of electricity supply while increasing access to renewable energy for households, businesses and productive sectors of the economy.
The bank did not provide details on the project’s technical specifications, implementation timeline, total cost or whether other financing partners would participate.
The approval follows an earlier announcement by Niger State authorities in January 2026 that they were working with the IsDB on a solar electrification project valued at about US$163 million.
According to reports citing state government officials, the initiative includes plans for the construction of a 100-megawatt solar power plant on approximately 200 hectares of land.
The planned facility is expected to provide electricity to residential communities while supporting agricultural and industrial activities in the state.
Niger State plays an important role in Nigeria’s energy sector, hosting four of the country’s major hydroelectric dams.
The state government has identified energy development as a key driver of economic growth, with the local economy built around agriculture, mining, trade and power generation.
The new solar investment is expected to complement existing hydropower resources and help strengthen the state’s position as a major electricity-producing region.
Nigeria has continued to face challenges in achieving reliable electricity supply despite having significant energy resources.
Authorities have increasingly turned to renewable energy projects, including solar power, as part of efforts to close electricity gaps, expand access and reduce dependence on traditional energy sources.
The IsDB financing aligns with broader efforts by development institutions to support clean energy transitions across Africa, where limited power access remains a major obstacle to economic growth.
Renewable energy projects are also seen as important for supporting small businesses, improving agricultural productivity and creating new opportunities in underserved communities.
For Niger State, officials expect the solar project to improve electricity availability and support economic activities by providing a more stable power supply.
The investment also forms part of Nigeria’s wider ambition to diversify its energy sector and increase the contribution of renewable sources to national power generation.
With growing demand for electricity from households and industries, energy experts say expanding renewable capacity will be critical to achieving long-term energy security.
The IsDB said the project supports sustainable development goals by promoting cleaner energy generation and strengthening economic resilience through improved access to electricity.
