The International Finance Corporation has signed a $5 million investment in Husk Nigeria to expand access to reliable, renewable energy in underserved communities across Nigeria.

The funding, done with the support of Canada, was disclosed in a statement on Thursday in Lagos.

The financing will support the rollout of Husk’s portfolio of solar hybrid mini grids in Northern Nigeria, helping address one of the country’s most urgent development challenges: access to electricity.

It marks the first investment under the IFC Distributed Access through Renewable Energy Scale-up platform, a $200 million debt facility approved in November 2024 to catalyse private sector solutions across West and Central Africa.

The DARES Platform complements the World Bank-financed Nigeria DARES Project, a $750 million initiative launched in December 2023 and implemented by Nigeria’s Rural Electrification Agency.

Together, these efforts aim to provide over 17.5 million Nigerians with new or improved electricity access through decentralised renewable energy systems.

IFC’s financing package will enable Husk to develop and operate up to 108 mini-grid sites, resulting in approximately 28,750 new electricity connections and delivering clean, affordable energy to around 115,000 people and businesses.

Husk’s solar hybrid mini-grids offer a cost-effective alternative to diesel generators, providing users with at least 25 per cent in cost savings while significantly reducing greenhouse gas emissions.

According to the statement, the total project cost is estimated at $25 million.

It said IFC’s $5 million package includes a $2.5 million senior loan from its own account and a $2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Programme for Africa.

It said the facility was structured as a revolving loan, allowing Husk to repay and redraw funds multiple times during the project’s implementation.

Ethiopis Tafara, regional vice-president of Africa, IFC, said, “The DARES Platform is an innovative approach to tackling one of Africa’s most pressing challenges—energy access.

“By partnering with Husk, a leading renewable energy developer globally, through the first project under the DARES Platform, we are not only addressing the immediate electricity needs of underserved communities in Nigeria but also laying the foundation for a scalable model that can be replicated across the continent.

“This initiative underscores IFC’s commitment to advancing sustainable energy solutions through strong partnerships between the private sector, governments, and development institutions.”

Manoj Sinha, Husk co-founder and CEO, said, “This innovative debt facility is exactly what the minigrid industry needs to scale — blended, long-term and affordable capital.”

Similarly, Olu Aruike, country director, Husk Nigeria, said, “Access to working capital is critical for sustained and rapid growth. Adding 108 new communities to our minigrid portfolio with IFC support is an important step toward our goal of deploying at least 250MW of decentralised renewable energy projects in Nigeria.”

The DARES Platform supports the World Bank Group and the African Development Bank’s Mission 300, inaugurated in April 2024, which aims to bring electricity access to 300 million people across Africa by 2030.

The platform also promotes gender inclusion and productive energy use, with a focus on reaching female-headed households, supporting women-led MSMEs, and enabling job creation for women in the energy sector.

(NAN)