LEVERAGING PUBLIC-PRIVATE PARTNERSHIPS FOR SUSTAINABLE INFRASTRUCTURE: A CASE STUDY OF DEVELOPMENT BANK OF NIGERIA’S FINANCING OF RURAL MINI -GRID PROJECTS

Nigeria’s power sector has faced persistent challenges for over five decades, with more than 80 million people lacking access to electricity and rural electrification levels remaining below 30%. To addressthese challenges, the Rural Electrification Agency (REA) partnered with the Development Bank of Nigeria (DBN) in 2021 to finance 1 000 mini-grid projects across the country’s six geopolitical zones through a public-private partnership framework. This study evaluates the REA-DBN collaboration using quantitative panel data from ₦63.6 billion in loans disbursed through 10 Participating Financial Institutions (PFIs) to 304 developers operating across multiple states and sectors between 2023 and2025. The analysis reveals that the partnership generated 21 698 new jobs while preserving 12 590 existing jobs, resulting in a total employment impact of 34 288 jobs. Regression results confirm that loan disbursement is a significant and positive determinant of employment creation. For every ₦1 million disbursed, approximately 1.31 additional jobs are created. Employment gains are concentrated in Manufacturing (6 662 jobs), Power and Energy (5 150 jobs), and Agriculture (4 607 jobs), which togetheraccount for 75.7% of total new jobs. The agriculture sector demonstrates the highest employment multiplier (0.8), highlighting the capacity of rural electrification to stimulate indirect employment through supply chains and induced economic activity. Beyond employment creation, the findings demonstrate that targeted financing can improve the viability of mini-grid investments and accelerate energy access in underserved communities. Overall, the study highlights the transformative potential of effective public -private partnerships in advancing rural electrification, expanding economic opportunities, and supporting inclusive socio-economic development across Nigeria nationwide.