IFC, Canada Invest USD 5 Milion in Husk to Power Rural Nigeria with Solar Hybrid Mini-Grids

In a major push for clean energy in Africa, the International Finance Corporation (IFC), with support from the Government of Canada, has announced a USD 5 million investment in Husk Power Energy Systems Nigeria Ltd. to expand solar-powered mini-grids across rural Northern Nigeria.

This funding marks the first investment under IFC’s USD 200 million Distributed Access through Renewable Energy Scale-up (DARES) Platform, launched in November 2024 to catalyse private sector solutions in West and Central Africa. The move aligns with the World Bank’s USD 750 million Nigeria DARES Project, which aims to deliver electricity to over 17.5 million Nigerians through decentralised renewable energy systems.

Husk will use the funds to develop and operate up to 108 solar hybrid mini-grids, expected to bring clean, affordable electricity to about 115,000 people and businesses. The grids offer a 25 percent cost advantage over diesel generators while cutting greenhouse gas emissions.

The USD 25 million project will be co-financed through a USD 2.5 million senior loan from IFC and a USD 2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Program for Africa. The revolving loan structure allows Husk to repay and reuse the capital as it scales operations.

“This initiative tackles one of Africa’s most urgent challenges, energy access,” said Ethiopis Tafara, Regional Vice President for Africa, IFC. “Partnering with Husk under the DARES Platform creates a replicable model that brings together the private sector, governments, and development institutions.”

Husk’s CEO Manoj Sinha called the facility 'blended, long-term, and affordable capital, exactly what the mini-grid industry needs.' Olu Aruike, Manager of Husk Nigeria, added that the project is a key step toward their goal of deploying 250 MW of decentralized renewable energy across the country.

Despite being Africa’s largest economy, Nigeria has over 85 million people without electricity, the highest access deficit globally. Many households and businesses rely on diesel generators due to unreliable grid supply.

The DARES Platform also supports the Mission 300 initiative, launched by the World Bank Group and African Development Bank, to bring power to 300 million Africans by 2030.