A debt financing deal is bringing electricity to 25,000 Nigerians in remote communities, marking a pivotal moment for renewable energy infrastructure in Africa’s most populous nation, according to BusinessDay.
Okra Solar and InfraCredit announced the first successful debt financing of a mesh-grid project under InfraCredit’s Climate Finance Blending Facility, providing First Electric with capital to electrify 5,156 households and small businesses across 20 underserved communities. The transaction demonstrates that mesh-grid technology can attract institutional investment while requiring lower subsidies than traditional mini-grid systems.
The deal comes as Nigeria grapples with severe energy deficits, where an estimated 85 million people lack reliable electricity access. Traditional grid extension remains economically unfeasible for many rural areas, creating opportunities for distributed renewable solutions.
“InfraCredit has proven to be an incredibly innovative partner, truly going above and beyond to ensure the long-term success of energy access projects,” said Afnan Hannan, CEO of Okra Solar. “We have spent nine months establishing this initial financial blueprint, setting the path for Nigerian energy developers to finance and scale mesh-grids with less friction and bottlenecks in the future.”
The project operates within DARES (Distributed Access through Renewable Energy Scale-up), the world’s largest energy access program, which provides $750 million in World Bank-funded grants to renewable energy developers in Nigeria. Critically, Okra’s mesh-grid technology required only $300 per-connection in grants, compared to higher subsidies needed for conventional mini-grids.
The reduced subsidy requirement translates to at least 40 percent lower borrowing needs for the Nigerian government to achieve the same household electrification targets, according to Okra Solar. This efficiency could prove crucial as Nigeria seeks to balance development goals with fiscal constraints.
InfraCredit, rated ‘AAA’ by international credit agencies, structured the financing in local currency, shielding developers from foreign exchange volatility that has plagued infrastructure projects across emerging markets. The naira has depreciated significantly against major currencies in recent years, making dollar-denominated debt increasingly expensive for local operators.
“This milestone reflects our commitment to bridging Nigeria’s energy gap through innovation,” said Daniel Komolafe, CEO of First Electric. “With InfraCredit’s financing and Okra’s technology, we are demonstrating that clean energy for the hardest-to-reach communities is not just an impact goal, but a commercially viable reality.”
The transaction involved coordination among multiple stakeholders, including the Nigeria Sovereign Investment Authority, the UK’s Foreign, Commonwealth and Development Office, FSD Africa, Nigeria’s Rural Electrification Agency, and the World Bank.
Mesh-grid technology differs from standalone mini-grids by connecting multiple small distribution networks, allowing for greater efficiency and scalability. Proponents argue that this architecture better matches the distributed nature of renewable generation while maintaining reliability.
The successful financing could establish a replicable model for energy access investments across sub-Saharan Africa, where hundreds of millions remain without electricity. Traditional development finance has struggled to scale renewable solutions in rural markets due to perceived risks and limited returns.
Okra Solar has launched Pipeline Builder, a software tool enabling rural energy service companies to rapidly design and simulate mesh-grid projects while streamlining DARES grant applications.
The company aims to accelerate project development timelines and reduce transaction costs.
First Electric plans to use the financing framework to scale operations and reach additional communities. The company did not disclose specific expansion targets or the total value of the InfraCredit facility.
