May 21, 2024
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ELECTRICITY

EIB Commits $20m for Electrification in Nigeria

The European Investment Bank (EIB) has approved a $20 million loan to support the electrification of rural communities in Nigeria through solar photovoltaic energy-powered community mini-grids. This financial boost comes as part of a Series D fundraising effort initiated by Husk Power, an American enterprise dedicated to off-grid solar solutions.

With about 90 million Nigerians still without access to electricity, companies like Husk Power are investing in off-grid solar systems capable of powering rural communities. As part of its activities in Nigeria, the American company is obtaining a $20 million loan from the European Investment Bank (EIB).

The funding is part of the European Union’s (EU) Global Gateway strategy to establish sustainable and reliable links with partner countries.

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In Nigeria, the EU has pledged to invest €900 million in education, energy and transport by 2022. The EIB also granted a $20 million loan as part of a Series D fund-raising organised by Husk Power to finance its activities in Nigeria.

Ambroise Fayolle, Vice-President of the European Investment Bank explained that thousands of homes and businesses will benefit from more reliable access to solar energy and battery storage, avoiding the need for more expensive diesel generators. The $20 million loan should enable the electrification of at least 150 communities.

Husk also plans to install rooftop solar panels for commercial and industrial (C&I) customers, expand sales of appliances to households and small businesses, and introduce value-added services such as agri-food and e-mobility.

In 2023, the company led by Manoj Sinha announced its ambition to electrify 500 rural Nigerian communities over the next five years. Africa Energy Portal reports that Husk already operates 20 solar-powered mini-grids in the West African country.

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