IFC and Norfund are backing a new Nigerian off-grid electricity programme.
The initiative targets nearly 500,000 households and businesses in underserved communities.
For families and small firms, reliable power could mean lower costs, longer trading hours and better livelihoods.
Clean Power Targets Nigeria’s Access Gap
The International Finance Corporation and Norfund are providing up to $83.2 million to expand access to renewable energy electricity for nearly 500,000 households and businesses across underserved communities in Nigeria, in a major push to scale solar hybrid mini-grids and distributed energy systems.
The initiative, announced on April 29, 2026, will support five Renewable Energy Service Companies: Darway Coast Nigeria Limited, GVE Projects Limited, Prado Power Limited, PriVida Power Limited and StarTimes Energy.
Together, the companies are expected to roll out 315 solar hybrid mini-grid sites, helping connect about 2.9 million people to electricity.
The financing includes $35.3 million in concessional debt from the IDA Private Sector Window Blended Finance Facility and IFC’s Concessional Capital Window.
The projects represent an estimated $271 million in total capital expenditure, signalling a larger private-sector play in Nigeria’s off-grid power market. (IFC)
Mini-Grids Move From Margins To Market
Nigeria’s electricity challenge remains one of Africa’s biggest development bottlenecks.
IFC says more than 85 million Nigerians still lack access to electricity, while many connected homes and businesses face unreliable supply.
- For a welder in a rural market, unreliable power means missed income.
- For a cold-room operator, it can mean spoiled goods.
- For a student, it can mean studying under weak light or not at all. Mini-grids do not solve every grid problem.
However, they can bring targeted electricity to communities where national grid expansion is slow or commercially difficult.
Reliable Electricity Can Unlock Livelihoods
The programme’s development case is built around jobs, enterprise and local productivity.
IFC Regional Vice President for Africa, Ethiopis Tafara, said access to electricity is fundamental to jobs and economic growth, adding that targeted investment and partnerships can scale proven solutions under the Mission 300 initiative.
Norfund’s Mark Davis said the partnership would help back high-impact energy access projects while unlocking additional investment into Nigeria’s energy market. Henry Ureh, CEO of Darway Coast Nigeria Limited, said reliable electricity would help operators expand, support local businesses and create jobs in communities they serve.
Delivery Must Match Community Needs
The opportunity is substantial, but execution will decide the impact. Mini-grids must be affordable, reliable and locally maintained.
Tariffs must work for operators without excluding low-income households and microbusinesses.
Communities also need transparent communication on connection costs, service quality and complaint channels.
Nigeria’s off-grid sector has gained momentum as investors seek scalable alternatives to diesel generators and weak grid reliability.
A 2025 Reuters report noted that Nigeria signed a $200 million renewable mini-grid deal with WeLight to power rural areas, showing growing institutional interest in decentralised electricity.
The ESG test is whether clean power reduces energy poverty, supports small businesses, cuts dependence on generators, and expands opportunity in communities that have waited too long for reliable electricity.
Path Forward – Power Communities, Build Markets
Nigeria’s next priority is to turn financing into functioning connections, transparent tariffs, local jobs and reliable service for underserved communities.
If implemented well, the IFC-Norfund programme can strengthen clean energy access, support enterprise growth and prove that distributed renewable power is not just a climate solution, but a practical development strategy.
Press Release: IFC and Norfund Expand Energy Access for Homes and Businesses in Underserved Communities Across Nigeria | Africa Energy Portal
