IFC, Norfund Commit $83.2m to Expand Solar Mini-Grids in Nigeria

The International Finance Corporation (IFC) and Norfund are preparing a combined financing package of up to $83.2 million to support solar hybrid mini-grids across Nigeria.

The funding will go towards the deployment of distributed energy systems designed to expand electricity access in underserved communities, particularly in areas beyond the reach of the national grid.

The package includes $35.3 million in concessional debt from facilities linked to the International Development Association and IFC. It is expected to support the construction of 315 mini-grid sites, forming part of a wider programme with an estimated capital cost of $271 million.

According to the IFC, the initiative could connect about 2.9 million people and serve nearly 500,000 households and businesses.

Five renewable energy service companies—Darway Coast Nigeria Limited, GVE Projects Limited, Prado Power Limited, PriVida Power Limited and StarTimes Energy—are set to deliver the off-grid systems.

Despite being Africa’s largest economy, Nigeria still has more than 85 million people without access to electricity, while many connected users contend with unreliable supply and dependence on diesel generators.

The partners said the mini-grids would support local economic activity, improve energy access and provide a more stable power source for small enterprises.