The International Finance Corporation (IFC) and the Canadian government have jointly invested $5 million in Husk Nigeria to boost access to clean, reliable electricity in underserved communities across Northern Nigeria.
The funding aims to tackle energy poverty, a major development challenge affecting millions in off-grid regions.
This investment will support Husk Nigeria’s plan to develop and operate 108 solar hybrid mini-grid sites. These projects are expected to connect approximately 115,000 people and businesses, providing around 28,750 new electricity connections in rural and remote areas. The initiative promises affordable and renewable energy access where it is most needed.
This $5 million financing is the first tranche under IFC’s Distributed Access through Renewable Energy Scale-up (DARES) Platform. Launched in November 2024, DARES is a $200 million debt facility focused on accelerating private sector-driven renewable energy solutions in West and Central Africa.
Husk Nigeria’s project has an estimated total cost of $25 million. The $5 million 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. The revolving loan structure allows Husk to repay and redraw funds during project implementation, providing flexibility.
Ethiopis Tafara, IFC Regional Vice President for Africa, described the partnership as an innovative solution addressing Africa’s urgent energy access gap. “By collaborating with Husk, a leading renewable energy developer, we are not only meeting immediate electricity needs but also building a scalable model for the continent,” he said.
Manoj Sinha, Husk’s Co-founder and CEO, welcomed the funding as critical for scaling mini-grid development. “This blended, long-term capital is exactly what the mini-grid industry needs to grow sustainably,” Sinha said.
Olu Aruike, Husk Nigeria’s Country Director, highlighted the project’s impact, stating, “Adding 108 new communities is a vital step toward our goal of deploying at least 250mw of decentralised renewable energy in Nigeria.”
The DARES Platform complements the World Bank-supported Nigeria DARES Project, which launched in December 2023 with a $750 million budget managed by the Rural Electrification Agency (REA). Together, they aim to bring new or improved electricity access to more than 17.5 million Nigerians through decentralised renewable energy solutions.
REA data shows the broader program targets electrifying 3,244,900 households and empowering micro, small, and medium enterprises (MSMEs). This investment signals a promising shift toward clean energy, fostering economic growth and improving lives across Nigeria’s off-grid communities.
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