• IFC and the Canadian government fund Husk Power with $5 million to install 108 hybrid mini-grids

• The project will provide clean energy to about 115,000 people and businesses in northern Nigeria

• Part of a broader program aiming to boost electricity access for 17.5 million Nigerians

The enhancement of electricity access in Africa is being driven by decentralized energy models and new financing mechanisms. Supporting this effort is a recently structured partnership between the International Finance Corporation (IFC) and the Canadian government in Nigeria.

On Thursday, May 15, the IFC announced a $5 million investment in Husk Power Energy Systems Nigeria Ltd to deploy up to 108 hybrid solar mini-grids in northern Nigeria. The investment marks the first transaction under the DARES mechanism—a $200 million credit facility launched by the IFC to speed up decentralized energy access in West and Central Africa.

The project aims to deliver clean, reliable electricity to about 115,000 individuals and businesses through 28,750 new connections. According to the company, Husk’s mini-grid model can reduce electricity costs by at least 25% compared to diesel, while also limiting carbon emissions. The total cost of the project is estimated at $25 million.

The announced $5 million financing includes a $2.5 million senior loan from the IFC and a $2.5 million concessional subordinated loan provided through the Canada–IFC Renewable Energy Program for Africa.

“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 250MW of decentralized renewable energy projects in Nigeria,” said Olu Aruike, Director of Husk Nigeria.

This initiative is part of the broader DARES Nigeria program, funded by the World Bank, which aims to improve electricity access for 17.5 million people. It also strengthens Husk Power’s presence in Nigeria, where it already operates through multiple partnerships. One such deal was signed in April 2025 with Olam Agri to supply solar power with storage to a rice mill in Nasarawa State.

With more than 80 million Nigerians still lacking access to electricity, the decentralized model promoted by Husk—and now backed by the IFC and Canada—offers a scalable and practical path to accelerate electrification across the country.