InfraCredit to Support Nigeria with Clean Energy Investments

• InfraCredit announces £10 million co-financing arrangement with FCDO
• The project will electrify about 7,711 unserved households and small businesses and create up to 497 jobs.

Infracredit announces its collaboration with the United Kingdom Foreign, Commonwealth and Development Office (FCDO) for the credit enhancement of Darway Coast Nigeria Limited under the Climate Finance Blending Facility worth £10 million.

According to the institution, to support eligible clean energy projects in Nigeria and help the country reach its 2030 goal of universal electrification as well as the SDG 7 target of ensuring access to affordable, reliable, sustainable, and modern energy for all, the program aims to aggregate, de-risk, and unlock domestic institutional investments.

Other development partners are expected to increase the facility’s funding to co-finance a pre-assessed initial pipeline of over $128 million, which will mobilize at least N26.8 billion ($64 million) of domestic institutional capital to build 22.7 MW of isolated off-grid renewable energy projects in 580 underserved communities across 32 states in Nigeria.

In addition to connecting 172,535 unconnected homes and small businesses, the facility will also generate 6,977 employment and cut 394,403 tonnes of greenhouse gas emissions.

According to the company, the funding would be used to build six settlements without grid connectivity in Rivers State and Abia State in southern Nigeria, isolated solar mini-grids with a combined capacity of 526.1 kW.

When finished, the project will electrify up to 7,711 detached homes and small businesses, generate up to 497 employment, prevent 4,856 tonnes of greenhouse gas emissions, and improve access to renewable energy for use in profitable applications.

Henry Ureh, managing director of Darway Coast Nigeria Limited, stated that access to long-term, affordable local currency financing is essential for mini-grid developers’ sustainability. As a result, the project would allow them to obtain patient green capital in naira from domestic institutional investors and build the off-grid infrastructure.