- InfraCredit secures a $30 million investment from the British International Investment (BII) to support decentralised renewable energy projects in Nigeria.
- The funding aims to improve energy access for over 57,000 people, reduce reliance on diesel, and cut greenhouse gas emissions by 158.3 tonnes.
InfraCredit has secured a $30 million risk-sharing and blended local currency co-financing facility from the British International Investment (BII), the UK’s development finance institution. The funding aims to support Nigeria’s transition to clean energy by financing decentralised renewable energy (DRE) projects, particularly in underserved areas.
The facility has two components: a $20 million local currency counter-guarantee and a $10 million concessional financing package. The concessional funding will be provided through the Climate Finance Blending Facility (CFBF), a multi-donor platform designed to mobilise additional capital for clean energy projects in Nigeria. The funds will be used to co-finance DRE investments alongside InfraCredit’s existing local currency guarantees, supporting projects focused on mini-grids, solar-powered telephony, and other decentralised energy solutions.
Richard Montgomery CMG, the British High Commissioner to Nigeria, highlighted the success of the CFBF, which has already mobilised $11.48 million to support four green-certified local currency debt issuances for rural mini-grid projects. Montgomery expressed optimism about the continued impact of this facility, which was seeded with £10 million in concessional funding by the UK Foreign, Commonwealth & Development Office in 2021.
Benson Adenuga, Head of Office and Coverage Director at BII, emphasised that expanding decentralised renewable energy in Nigeria is an environmental and economic necessity. He noted that these solutions could help power millions of Nigerians without electricity while reducing the country’s dependence on expensive and polluting diesel generators.
InfraCredit’s CEO, Chinua Azubike, welcomed the BII investment, calling it a significant boost for the company’s ability to de-risk renewable energy projects and catalyse domestic institutional investments. He said the investment would help reduce the capital costs of DRE projects, making it easier for developers to serve low-income customers in rural areas.
The $30 million facility is expected to mobilise private capital at scale and drive long-term sector growth. InfraCredit’s pipeline of DRE projects has already reached $497.37 million, and the new funding is expected to provide over 57,000 new energy connections, increase renewable energy capacity by 20.1 MWp, and create 2,558 jobs. The projects will also reduce greenhouse gas emissions by 158.3 tonnes.
With more than 85 million Nigerians, or 43% of the population, lacking access to electricity, the need for decentralised renewable energy solutions has never been more urgent. The BII investment is expected to improve the quality of life for millions, particularly in rural and low-income communities, by providing reliable, clean energy and reducing reliance on diesel-powered generators.