IFC and Norfund Launch $83M Clean Energy Push to Power Nigerian Homes and Businesses

Norfund, Norway’s development finance institution, emphasised the importance of leveraging private capital to build a resilient and inclusive energy market.

In a major step toward closing Nigeria's vast electricity access gap, the International Finance Corporation (IFC) and Norfund have unveiled a high-impact renewable energy initiative set to bring reliable power to nearly 500,000 households and businesses across underserved communities.

The programme, backed by a combined financing package of up to $83.2 million, aims to scale off-grid and distributed solar solutions—unlocking economic activity, boosting small enterprises, and accelerating job creation in one of Africa's most energy-constrained markets.

Powering Growth in Africa's Largest Economy

Nigeria, Africa's largest economy, faces a deep and persistent energy deficit. More than 85 million people remain without access to electricity, while millions more experience unreliable grid supply—forcing reliance on costly and polluting diesel generators.

This energy shortfall continues to limit productivity, suppress private sector growth, and constrain job creation, particularly in rural and underserved regions.

The new initiative directly targets these gaps by expanding access to clean, affordable, and reliable electricity, enabling businesses to operate more efficiently and communities to participate more fully in economic life.

"Access to electricity is fundamental to jobs and economic growth," said Ethiopis Tafara, IFC Regional Vice President for Africa. "By combining targeted investment with strong partnerships, we can scale proven solutions that strengthen local economies and expand opportunity."

Scaling Distributed Renewable Energy at Speed

The programme will support five Renewable Energy Service Companies (RESCOs) operating at the frontline of Nigeria's off-grid energy expansion:

• Darway Coast Nigeria Limited

• GVE Projects Limited

• Prado Power Limited

• PriVida Power Limited

• StarTimes Energy

These companies specialise in last-mile electrification, delivering solar hybrid mini-grids to communities beyond the reach of the national grid.

Together, the projects will deploy 315 solar hybrid mini-grid sites, connecting approximately 2.9 million people to electricity—one of the largest coordinated off-grid expansions in the country to date.

Blended Finance to Unlock Scale

The initiative is structured to mobilise both public and private capital, combining concessional and commercial financing to reduce risk and attract investment.

Key elements include:

• $83.2 million in total IFC and Norfund financing

• $35.3 million in concessional debt from the IDA Private Sector Window and IFC's Concessional Capital Window

• A broader $271 million total project investment, enabling large-scale deployment

This blended finance model is designed to make renewable energy projects more viable in high-risk environments, accelerating rollout while ensuring long-term sustainability.

Driving Jobs and Local Enterprise

Beyond electrification, the initiative is expected to generate significant economic spillovers. Reliable electricity is a key enabler for:

• Small and medium enterprise (SME) growth

• Expansion of agro-processing and local manufacturing

• Digital services and connectivity

• Job creation across installation, maintenance, and supply chains

Henry Ureh, CEO of Darway Coast Nigeria Limited, highlighted the direct impact on communities:

"Access to reliable electricity allows us to expand our operations, support local businesses, and create jobs. This support will help us scale faster and deepen our impact."

The programme also places a strong emphasis on inclusive growth, with particular benefits expected for women-led businesses, which often face disproportionate barriers to energy access.

Aligning with National and Global Energy Goals

The initiative is closely aligned with Nigeria's national electrification strategy and broader World Bank Group efforts, including the Distributed Access through Renewable Energy Scale-up (DARES) platform.

It also forms part of IFC's Mission 300, which aims to connect 300 million people in Africa to electricity by 2030.

"Closing Nigeria's electricity access gap requires scalable and sustainable solutions," said Sanyade Okoli, Special Adviser to the President on Finance and the Economy. "Partnerships like this are critical to accelerating access while enabling economic growth."

Building a Resilient Energy Future

Norfund, Norway's development finance institution, emphasised the importance of leveraging private capital to build a resilient and inclusive energy market.

"This partnership enables us to back high-impact energy projects while unlocking additional investment into the sector," said Mark Davis, Executive Vice President for Renewable Energy at Norfund.

By reducing reliance on diesel and expanding clean energy access, the initiative is also expected to lower energy costs, cut emissions, and improve environmental sustainability.

A Blueprint for Scalable Electrification

As countries across Africa grapple with similar energy challenges, the Nigeria initiative offers a scalable model for combining:

• Distributed renewable technologies

• Public-private partnerships

• Blended finance mechanisms

• Local private sector participation

With millions set to benefit and economic activity poised to expand, the programme represents a significant step toward bridging Africa's energy divide while driving inclusive development.