InfraCredit secures $30 million to fund renewable energy projects in Nigeria

Timilehin Adejumobi -
Key Points
  • InfraCredit secures $30 million from BII for Nigeria's clean energy transition, adding 57,000 energy connections and 20.1 MW capacity.
  • The facility will create 2,558 jobs, reduce emissions by 158.3 tonnes, and lower DRE project risks with InfraCredit guarantees.
  • InfraCredit's pipeline hits $497.37 million, bolstered by partnerships with BII and African Development Bank to boost renewable energy.

InfraCredit, an infrastructure credit guarantee institution led by Chinua Azubike, has secured a $30 million risk-sharing facility from British International Investment (BII), aiming to accelerate Nigeria’s clean energy transition.

The funding, split into $20 million in concessional financing and $10 million in additional support, will enable InfraCredit to expand renewable energy infrastructure, strengthening energy access in underserved communities.

The initiative will introduce 20.1 megawatts of renewable energy, creating 57,000 new energy connections across 564 rural communities. This development is expected to generate 2,558 jobs and cut carbon emissions by 158.3 tonnes annually, marking a significant step toward bridging Nigeria’s energy access gap.

“With BII’s support, we aim to expand impact through this facility,” said Chinua Azubike, CEO of InfraCredit. “This collaboration builds on an initial £10 million funding from the UK Foreign, Commonwealth & Development Office in 2021, helping us reduce project risks and local currency debt costs for developers.”

Partnerships powering Nigeria’s green shift

British High Commissioner Richard Montgomery highlighted the progress of the UK-backed Climate Finance Blended Facility (CFBF), which has mobilized $11.48 million (N8.92 billion) to support mini-grids and solar-powered telephony projects.

BII’s Nigeria Director, Benson Adenuga, praised the initiative as a scalable solution for decentralizing energy and reducing reliance on diesel.

“Distributed renewable energy is crucial for empowering millions without access to electricity and enhancing economic resilience,” Adenuga stated. “We are excited to partner with InfraCredit to mobilize capital for Nigeria’s clean energy transformation.”

Growing pipeline of projects

Since its founding in 2017, InfraCredit has become a cornerstone of Nigeria’s infrastructure financing landscape. Under Azubike’s leadership, its Distributed Renewable Energy (DRE) project pipeline has grown to $497.37 million.

The company’s latest partnership with BII enhances its ability to attract private capital and expand its reach. In addition to the BII facility, InfraCredit recently secured a $15 million financing package from the African Development Bank Group, reinforcing its position as a key player in advancing Nigeria’s renewable energy future.