The International Finance Corporation (IFC), a member of the World Bank Group, has announced a $5 million investment in Husk Power Energy Systems Nigeria Limited (Husk Nigeria), with support from the Government of Canada. This funding will help expand access to reliable and renewable energy in underserved communities in Nigeria, particularly in the northern region. The investment will support Husk Nigeria, a subsidiary of Husk Power Systems Inc., in developing and operating a network of solar hybrid mini-grids. These mini-grids are designed to provide clean and affordable electricity in areas where access to power remains one of the country’s major development challenges.
The project marks the first investment under the IFC’s Distributed Access through Renewable Energy Scale-up (DARES) Platform. Approved in November 2024, the DARES Platform is a \$200 million debt facility aimed at boosting private sector renewable energy projects across West and Central Africa. The initiative is closely aligned with the World Bank-funded Nigeria DARES Project, a $750 million program launched in December 2023 and implemented by Nigeria’s Rural Electrification Agency. Together, the two efforts aim to improve electricity access for over 17.5 million Nigerians by promoting decentralized renewable energy solutions.
IFC’s financing will help Husk Power build up to 108 solar hybrid mini-grid sites, creating approximately 28,750 new electricity connections. These connections will benefit an estimated 115,000 individuals and small businesses, replacing costly diesel generators with a more affordable and environmentally friendly option. On average, users of Husk’s solar hybrid systems can expect to save at least 25% on energy costs while also reducing greenhouse gas emissions.
Ethiopis Tafara, Regional Vice President of Africa, IFC, “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.”
Manoj Sinha, Husk Co-Founder and CEO, said “This innovative debt facility is exactly what the minigrid industry needs to scale — blended, long-term and affordable capital.”
“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 MW of decentralized renewable energy projects in Nigeria,” commented Olu Aruike, Manager, Husk Nigeria.
The total cost of the project is estimated at $25 million. IFC’s contribution includes a $2.5 million senior loan from its own account and a $2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Program for Africa. The financing is structured as a revolving loan, allowing Husk to repay and access funds multiple times as the project progresses. Despite being the largest economy in Africa, Nigeria has the world’s largest electricity access gap, with over 85 million people lacking reliable power.
Even those connected to the national grid often face inconsistent supply and are forced to rely on polluting and expensive diesel generators. This investment also supports the goals of the World Bank Group and the African Development Bank’s Mission 300, launched in April 2024, which aims to provide electricity access to 300 million people in Africa by 2030. The initiative promotes inclusive development, including efforts to improve access for female-headed households, support women-led small businesses, and create jobs for women in the energy sector.
