IFC considers $8.6m financing for Nigerian mini-grid firm

The International Finance Corporation (IFC) is considering up to $8.6m in debt financing for Nigerian renewable energy company Nayo Tropical Technology Ltd. to support the construction of 14 solar mini-grids across four states.

The proposed financing, disclosed on September 24, 2026, would support projects with a combined generation capacity of 14 megawatts in Enugu, the Federal Capital Territory, Ondo and Niger states.

The projects have an estimated total cost of $29.7m, with IFC’s proposed investment still subject to approval.

Under the proposed structure, IFC would provide a secured revolving debt facility comprising an A Loan of up to $5.8m for its own account, alongside $2.8m from a parallel lender.

The financing is being considered under IFC’s Distributed Access through Renewable Energy Scale-up (DARES) Platform, a facility of up to $200m designed to provide debt financing to mini-grid developers and operators.

The proposed Nayo projects are also expected to benefit from performance-based grants under the World Bank’s Nigeria DARES programme, which seeks to expand electricity access through distributed renewable energy solutions.

The World Bank estimates that the broader DARES programme could provide new or improved electricity access to more than 17.5 million Nigerians.

Nayo, which was founded in 1997 and incorporated in 2004, develops, owns and operates solar mini-grids as well as commercial and industrial solar projects in Nigeria.

According to IFC’s project disclosure, the company has already delivered 14 mini-grid projects under the Nigeria Electrification Project, providing 13,642 electricity connections.

The company is owned by Anayo Okenwa, who holds a 60 per cent stake, and Nnenna Orlu, who owns the remaining 40 per cent.

IFC said the proposed investment is expected to expand access to electricity for consumers with inadequate or unreliable power supply while supporting lower-emission energy generation.

The corporation also said the financing would help address a shortage of comparable foreign-currency funding for mini-grid developers, particularly for construction-related costs.

Beyond the financing, IFC plans to support Nayo in strengthening its corporate governance and environmental and social management systems as it expands its operations.

The proposed investment has been classified as Category B under IFC’s environmental and social framework, indicating that the anticipated environmental and social impacts are expected to be limited and generally site-specific.

If approved, the financing would support Nayo’s planned expansion while adding development-finance capital to Nigeria’s growing distributed renewable energy sector.