The International Finance Corporation (IFC), in collaboration with the Government of Canada, has committed $5 million to Husk Nigeria to support the expansion of renewable energy access in underserved regions across the country.
Announced in a statement released Thursday in Lagos, the investment will accelerate the deployment of Husk’s solar hybrid mini-grid systems in Northern Nigeria — a region facing some of the country’s most critical electricity access challenges.
This investment is the first under the IFC’s Distributed Access through Renewable Energy Scale-up (DARES) Platform, a $200 million debt facility launched in November 2024 to mobilise private sector investment in decentralised renewable energy solutions across West and Central Africa.
The DARES Platform operates alongside the World Bank-funded Nigeria DARES Project, a $750 million initiative launched in December 2023 and managed by the Rural Electrification Agency. Together, both programs aim to extend electricity access to over 17.5 million Nigerians through decentralised renewable energy (DRE) systems.
With IFC’s financing, Husk is set to develop up to 108 mini-grid sites, enabling around 28,750 new electricity connections. These systems are expected to deliver reliable, affordable power to an estimated 115,000 people and businesses, while offering a cleaner, more cost-effective alternative to diesel generators, reducing user energy costs by at least 25% and cutting greenhouse gas emissions.
The total cost of Husk’s 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 Programme for Africa. The financing is structured as a revolving loan, allowing Husk to repay and redraw funds throughout the project’s duration.
Ethiopis Tafara, Regional Vice President of Africa, IFC, said, “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 mini-grid industry needs to scale blended, long-term and affordable capital.”
Similarly, Olu Aruike, Country Director, Husk Nigeria, said, “Access to working capital is critical for sustained and rapid growth.
“Adding 108 new communities to our mini-grid portfolio with IFC support is an important step toward our goal of deploying at least 250mw of decentralised renewable energy projects in Nigeria.”
The DARES Platform is aligned with the World Bank Group and African Development Bank’s Mission 300 initiative, launched in April 2024, which aims to provide electricity access to 300 million Africans by 2030.
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