British International Investment Provides $30M to Boost Renewable Energy in Nigeria
InfraCredit has received a $30 million risk-sharing and blended local currency facility from British International Investment (BII) to support renewable energy development in Nigeria. This dual financing comprises a $20 million local currency counter-guarantee and a $10 million concessional funding. The funds will primarily support decentralized renewable energy (DRE) projects, ensuring improved energy access in underserved areas. This partnership underscores BII’s commitment to Nigeria’s clean energy transition and aligns with its goal of expanding green infrastructure through innovative funding mechanisms.
The concessional funding is part of the Climate Finance Blending Facility (CFBF), which seeks to attract additional investments from development partners and institutional investors to co-finance renewable energy projects alongside InfraCredit. Richard Montgomery, British High Commissioner to Nigeria, noted that CFBF has already mobilized millions for projects like rural mini-grids and solar-powered telephony. The facility is expected to create significant social and environmental benefits by supporting sustainable and scalable clean energy solutions across Nigeria.
With over 85 million Nigerians lacking access to electricity, this investment addresses the urgent need for clean energy alternatives like solar mini-grids, especially in rural and low-income areas. According to InfraCredit CEO Chinua Azubike, this funding will reduce project costs, mitigate risks, and help de-risk the sector for private capital investment. The initiative is anticipated to add over 57,000 new energy connections, create 2,558 jobs, and significantly reduce greenhouse gas emissions, paving the way for green growth and economic resilience in Nigeria.
