The International Finance Corporation (IFC), in collaboration with the Government of Canada, has announced a $5 million investment in Husk Power Energy Systems Nigeria Limited (Husk Nigeria). This funding aims to support the development of 108 solar hybrid mini-grids across Northern Nigeria, providing renewable electricity to approximately 115,000 people and businesses.
Enhancing Energy Access in Nigeria
Nigeria, despite being Africa’s largest economy, faces significant energy access challenges, with over 85 million people lacking reliable electricity. The investment from IFC and Canada seeks to address this issue by expanding decentralized renewable energy solutions in underserved communities.
DARES Platform’s Inaugural Investment
This initiative marks the first investment under IFC’s Distributed Access through Renewable Energy Scale-up (DARES) Platform, a $200 million debt facility launched in November 2024. The DARES Platform aims to catalyze private sector-led energy access across West and Central Africa.
The $5 million financing package includes a $2.5 million senior loan from IFC’s own account and a $2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Program for Africa. The facility is structured as a revolving loan, allowing Husk to repay and redraw funds during the project’s implementation.
Project Impact and Goals
The total project cost is estimated at $25 million. With this investment, Husk Nigeria plans to develop and operate 108 mini-grid sites, resulting in approximately 28,750 new electricity connections. These solar hybrid mini-grids offer a cost-effective alternative to diesel generators, providing users with at least 25% in cost savings while significantly reducing greenhouse gas emissions.
Olu Aruike, Country Director of Husk Nigeria, stated, “Adding 108 new communities to our mini-grid portfolio with IFC support is an important step toward our goal of deploying at least 250MW of decentralized renewable energy projects in Nigeria.”
Strategic Partnerships for Sustainable Development
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 decentralized renewable energy systems.
Ethiopis Tafara, IFC’s Regional Vice President for Africa, remarked, “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.”
