The International Finance Corporation (IFC) has partnered with five distributed renewable energy (DRE) companies to accelerate the deployment of mini-grid projects in Nigeria, a move aimed at bridging the country’s electricity access gap.
The agreement, signed during the Mission 300 Africa Energy Summit in Dar es Salaam, involves Havenhill Synergy Ltd., Prado Power Ltd., PriVida Power Ltd., Sosai Renewable Energies Ltd., and Virtuitis Solaris Ltd.
These companies are participants in the Nigeria Distributed Access through Renewable Energy Scale-Up Programme (Nigeria DARES), a World Bank-funded initiative implemented by Nigeria’s Rural Electrification Agency (REA).
The partnership is expected to advance Nigeria’s transition to a sustainable and economically viable electricity supply, with the new projects set to bring power to 400,000 people in underserved areas.
Speaking at the event, Wale Edun, minister of finance and coordinating minister of the economy, hailed the agreement as a significant step toward addressing Africa’s energy challenges.
“This is one of the first tangible actions we can point to at this summit, which will culminate in the Dar es Salaam Declaration,” Edun said. “Today’s agreement will bring electricity access to 400,000 people, and we all know how transformative that is. I encourage us to keep up this momentum of doing rather than merely saying.”
Read also: Tinubu wants to drill Ogoni oil but cleanup drags
Edun also commended the contributions of Ajay Banga, president of the World Bank, and Akinwumi Adesina, president of the African Development Bank, noting their roles in driving the initiative forward.
Adebayo Adelabu, minister of power, emphasised the need for a collaborative approach to achieve universal energy access in Africa, highlighting the $30 billion funding gap required to meet Nigeria’s energy compact under the Mission 300 initiative.
“The name of the game is about partnership, cooperation, and collaboration. No single entity can do it alone,” he said. “Government alone cannot make this available. It requires cooperation and collaboration with the private sector, both locally and internationally.”
Adelabu also stressed the importance of leveraging diverse funding sources, including equity and debt financing, to support the country’s energy ambitions.
Chantel Abdul, chief executive officer of Virtuitis Solaris and a representative of the DRE companies, expressed the firms’ commitment to expanding energy access in underserved communities.
She commended the role of development partners in supporting the distributed energy solutions (DES) programme, which focuses on providing off-grid electricity.
“This is evidence of our development partners’ commitment to the M-300 agenda, as outlined by the Minister of Finance. Connecting 300 million Africans, including Nigerians, to electricity is a passion that Solaris shares deeply,” Abdul said.
She praised IFC’s efforts in providing critical financing, enabling renewable energy companies to scale their operations.
“This financing ensures that those of us building on the ground have the necessary capital, especially working capital, to invest in and scale our projects,” Abdul added.
Abdul revealed that Solaris plans to build 500 mini-grids within two years, starting with 100 grids in the first year, which will connect at least 200,000 customers across 10 to 15 states in Nigeria.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
