Nigeria secures $3.2m solar mini-grid deal

Key Figures & Findings: Husk Power, in partnership with the United Capital Infrastructure Fund (UCIF), has signed a ₦5 billion ($3.2 million) revolving debt facility to expand community solar mini-grids in Nigeria. Announced at the Africa Climate Summit in Addis Ababa, the deal is the largest naira-denominated financing yet in the sector. Its revolving structure allows Husk to draw capital twice during the 10-year tenor, unlocking a potential ₦10 billion ($6.4 million) for rural electrification. The facility addresses one of Nigeria’s biggest barriers to scaling mini-grids — access to affordable long-term local financing — and could accelerate clean power access for millions in underserved areas.

Statistics & Insights: The facility’s 10-year tenor is designed to allow at least two drawdowns, effectively doubling available capital over its lifetime. Proceeds will first support Husk’s pipeline of standalone mini-grids before moving into interconnected mini-grids (IMGs) and commercial and industrial (C&I) solar projects. The financing also underpins Husk’s broader Africa Sunshot initiative, which targets the development of 1,000 mini-grids across Nigeria by 2030.

Future Implications: If delivered as planned, the financing could support hundreds of rural mini-grids by 2030, extending electricity to households, SMEs, and farmers while reducing Nigeria’s diesel reliance. Its revolving design may also establish a blueprint for local-currency renewable energy financing across Africa.

Source: LinkedIn

Quick Take: Husk Power’s ₦5bn revolving debt deal signals a financing shift in Nigeria’s mini-grid sector, potentially shaping how rural electrification is funded across Africa.