InfraCredit Secures $30m Co-financing Facility from BII to Support Renewable Energy Projects in Nigeria
InfraCredit has secured a $30 million investment from British International Investment (BII), the UK’s development finance institution, to support Nigeria’s transition to clean energy. The financing comprises a $20 million local currency counter-guarantee and $10 million concessional financing for decentralized renewable energy (DRE) projects, such as solar mini-grids. The concessional financing is provided through the Climate Finance Blending Facility (CFBF), which aims to mobilize additional funding from domestic and international investors to co-finance clean energy projects in Nigeria. This initiative is crucial for addressing Nigeria’s significant energy access deficit, with over 85 million people lacking reliable electricity.
The investment from BII is expected to catalyze further private sector capital for DRE projects, lowering the risk profile and cost of local currency debt for developers. This will enable the expansion of renewable energy infrastructure, particularly in underserved rural areas, improving the quality of life for low-income communities by providing reliable, clean energy. The initiative is projected to create over 57,000 new energy connections, reduce greenhouse gas emissions by 158.3 tonnes, and generate 2,558 jobs. It also aims to expand Nigeria’s renewable energy capacity by 20.1 MWp and reach 564 communities. These efforts align with Nigeria’s climate goals and the need for sustainable energy solutions.
InfraCredit’s pipeline of DRE projects has grown significantly, now totaling $497.37 million (N746.05 billion), with continued expansion expected. BII’s investment, which builds on previous funding from the UK’s Foreign, Commonwealth & Development Office, is part of a broader effort to scale up clean energy access in Nigeria. The UK High Commissioner to Nigeria, Richard Montgomery, expressed confidence in the impact of the Climate Finance Blending Facility, while BII’s Head of Office, Benson Adenuga, highlighted the role of decentralized clean energy in empowering millions of Nigerians without reliable power, boosting economic resilience, and reducing reliance on costly diesel generators.
