- The Elektron Power investment is a significant step towards achieving ARM-Harith’s goal of investing in sustainable infrastructure projects in Nigeria.
- The project would replace up to 30MW of diesel self-generation in Lagos with natural gas generation, eradicating 9 million kilograms of CO2 monthly.
ARM-Harith Infrastructure Fund (ARMHIF) has announced an investment of $18.75 million into Elektron Power Infracom (EPI). EPI is a Mauritius-incorporated decentralised energy platform that delivers hybrid energy solutions across West Africa, anchored with existing assets in Nigeria. Elektron Energy Development Strategies Limited (Elektron) sponsors EPI, comprising brownfield and greenfield power assets. Through these power assets, EPI supplies power to commercial and industrial customers. They also supply directly to broad-based consumers under Nigeria’s embedded energy framework for power delivery.
The role of ARM-Harith in the project includes providing late-stage project development advisory and structuring support. This is to deliver a precedent-setting bankability framework for power projects under Nigeria’s decentralised embedded energy framework. The firm invested through equity, shareholder loans, and loan notes. Legal advisers for the transaction were Templars and Trinity International LLP.
Commenting on the project, the CEO of ARM-Harith Infrastructure Investments Ltd, Tariye Gbadegesin, stated, “We are absolutely delighted to have completed the investment in EPI as we consider the role of privately delivered power as central to solving the energy constraints in the Nigerian power sector and potentially in Africa as a whole. The EPI investment is a significant step towards achieving ARM-Harith’s goal of investing in sustainable infrastructure projects that support economic growth and development in Nigeria. We are excited to be a part of this important investment”.
The CEO of Elektron, Tola Talabi, said, “The power projects we seek to develop under the EPI structure will exhibit significant socio-economic and green benefits. These projects should lead the transition towards more flexible and de-carbonised energy solutions in Nigeria. For example, the ability to displace up to 30MW of diesel self-generation in Victoria Island, Lagos, replaced with natural gas generation, translates to eradicating well over five hundred diesel generators or the equivalent of 9 million kilograms of CO2 per month. We see these types of generation projects as key to unlocking Nigeria’s development potential in many ways.”