UK, energy firm launch $7.5m facility to boost mini-grid deployment in Nigeria

British International Investment (BII), the UK’s development finance institution, in partnership with Odyssey Energy Solutions, has launched a $7.5 million financing facility aimed at accelerating electricity mini-grid deployment across Nigeria.

In a statement on Wednesday, BII said the new facility comes at a critical time, as Nigeria ramps up its mini-grid ambition under the distributed access through renewable energy scale-up (DARES) programme, backed by the World Bank.

According to the statement, the new facility has the potential to scale in response to the demand by collaborating with an expanding pool of qualified developers and suppliers.

Such partnerships, BII added, will speed up project delivery and shorten the timeline for electrification.

“With $7.5 million funding from BII, the facility leverages Odyssey’s proprietary procurement platform and supply chain credit solution to support mini-grid developers,” the statement reads.

“The finance will be deployed to support Nigeria’s DARES programme, backed by the World Bank, which aims to improve energy access for 17.5 million Nigerians.

“Specifically, Odyssey works to bridge the gap between commitment and disbursement of DARES connections-based subsidies by addressing the financing bottleneck of upfront costs such as acquiring equipment and import duties.

“Through this offering, developers can procure high-quality solar and energy storage equipment with minimal upfront capital, paying back as projects reach revenue-generating milestones.

“This provides some key benefits for Nigerian solar companies including competitive pricing through aggregated procurement; flexible payments, improving working capital, faster procurement cycles and accelerating deployment timelines.”

BII said the facility will also provide end-to-end logistics support, from customs to last-mile delivery and high-quality, vetted equipment, ensuring system reliability.

Jonny Baxter, British deputy high commissioner in Lagos, noted that BII’s strategic investments reflect its strong confidence in Nigeria’s clean energy sector.

“This is a signal that opportunities for the private sector to drive forward the renewable energy revolution in Nigeria and across Africa are growing,” he said.

“UK finance is playing a pivotal role by helping to unlock green growth and establish Britain as a credible global partner on climate action in line with our Enhanced Trade and Investment Partnership (ETIP) with Nigeria.”

Also, Benson Adenuga, West Africa regional director at BII, said around 90 million people in Nigeria still lack access to electricity.

“Mini-Grids powered by clean and affordable energy sources have a vital role to play in rapidly reducing that number,” Adenuga said.

“I am delighted that BII is partnering with Odyssey to accelerate the development of such projects.

“BII has demonstrated a progressive and practical approach to unlocking financing challenges in distributed energy.”

Piyush Mathur, co-founder and managing director of Odyssey Energy Solutions, said their support “allows us to offer flexible, affordable financing options that meet developers where they are”.

Mathur said it ensures that “we can collectively accelerate electrification across Nigeria”.