IFC, Canada Invest $5M to Power 108 Nigeria Mini-Grids

The International Finance Corporation (IFC), in partnership with the Government of Canada, announced a $5 million investment in Husk Power Systems Nigeria to deploy 108 solar hybrid mini grids across underserved communities in Northern Nigeria. This initiative, the first under the IFC’s $200 million Distributed Access through Renewable Energy Scale-up (DARES) Platform, aims to provide reliable, affordable, and renewable electricity to approximately 115,000 people and businesses, resulting in about 28,750 new electricity connections. The financing package includes a $2.5 million senior loan from IFC and a $2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Program for Africa, structured as a revolving loan to enhance financial flexibility. Husk’s project, with an estimated total cost of $25 million, targets significant acceleration of clean energy access in regions suffering from chronic energy poverty, offering a scalable model for decentralized renewable energy solutions. The DARES Platform complements the World Bank-financed $750 million Nigeria DARES Project, implemented by the Rural Electrification Agency, aiming to improve electricity access for over 17.5 million Nigerians through decentralized renewable energy systems. IFC and Husk leadership emphasized the importance of this innovative financing in scaling private-sector-led electrification and reducing reliance on diesel generators, with benefits including cost savings and greenhouse gas emissions reduction.