The International Finance Corporation (IFC), in collaboration with the Canadian Government, has recently invested $5m in Husk Nigeria, to scale up the deployment of solar hybrid mini grids and renewable energy to underserved communities in Northern Nigeria.
This is intended to expand access to affordable, reliable, and renewable electricity in off-grid areas, which still constitutes one of Nigeria’s greatest development hurdles due to energy poverty.
This is the first investment under the IFC Distributed Access through Renewable Energy Scale-up (DARES) Platform, a $200 million debt facility that was signed in November 2024, to catalyse private sector solutions across West and Central Africa.
The DARES Platform complements the World Bank-financed Nigeria DARES Project, a $750m initiative launched in December 2023 and implemented by the Rural Electrification Agency.
The two have been geared towards providing new or improved energy access through decentralized renewable energy (DRE) solutions to over 17.5 million Nigerians.
The statement noted that the IFC’s financing package will enable Husk to develop and operate up to 108 mini-grid sites, possibly connecting around 115,000 individuals and businesses with approximately 28,750 new electricity connections.
The statement read, “The International Finance Corporation, a member of the World Bank Group, with the support of the Government of Canada, has announced a $5m investment in Husk Power Energy Systems Nigeria Limited, a subsidiary of Husk Power Systems Inc., to expand access to reliable, renewable energy in underserved communities across Nigeria.
“The financing will support the rollout of Husk’s portfolio of solar hybrid mini grids in Northern Nigeria, helping address one of the country’s most urgent development challenges: access to electricity.
“IFC’s financing package will enable Husk to develop and operate up to 108 mini-grid sites, resulting in approximately 28,750 new electricity connections and delivering clean, affordable energy to around 115,000 people and businesses. Husk’s solar hybrid mini-grids offer a cost-effective alternative to diesel generators, providing users with at least 25 per cent in cost savings while significantly reducing greenhouse gas emissions.”
According to the statement, the total project cost is estimated at $25m. It said IFC’s $5m package includes a $2.5m senior loan from its own account and a $2.5m concessional subordinated loan from the Canada-IFC Renewable Energy Programme for Africa.
It said the facility was structured as a revolving loan, allowing Husk to repay and redraw funds multiple times during the project’s implementation.
Commenting on the deal, the IFC regional Vice President for Africa, Ethiopis Tafara, described the development as “an innovative approach to tackling one of Africa’s most pressing challenges, energy access.
Tafara said, “The DARES Platform is an innovative approach to tackling one of Africa’s most pressing challenges—energy access. By partnering with Husk, a leading renewable energy developer globally, through the first project under the DARES Platform, we are not only addressing the immediate electricity needs of underserved communities in Nigeria but also laying the foundation for a scalable model that can be replicated across the continent.
“This initiative underscores IFC’s commitment to advancing sustainable energy solutions through strong partnerships between the private sector, governments, and development institutions”
Co-founder and CEO of Husk, Manoj Sinha, said, “ This innovative debt facility is exactly what the minigrid industry needs to scale — blended, long-term and affordable capital.”
Country Director, Husk Nigeria, Olu Aruike, noted, “Access to working capital is critical for sustained and rapid growth. Adding 108 new communities to our minigrid portfolio with IFC support is an important step toward our goal of deploying at least 250 megawatts of decentralised renewable energy projects in Nigeria.”
Despite being Africa’s largest economy, Nigeria has the world’s highest electricity access deficit, with over 85 million people living without power. Even those connected to the national grid often experience unreliable supply, prompting widespread reliance on expensive and polluting diesel generators.
