As reported by NAN, the deal was finalized during the ongoing Mission 300 Africa Energy Summit in Dar es Salaam on Monday.
The IFC partnered with Havenhill Synergy Ltd., Prado Power Ltd., PriVida Power Ltd., Sosai Renewable Energies Ltd., and Virtuitis Solaris Ltd.
These companies are part of the Nigeria-distributed access through renewable energy scale-up programme (Nigeria DARES), which is funded by the World Bank and managed by Nigeria's Rural Electrification Agency (REA).
The goal of this new agreement is to help Nigeria bridge its electricity access gap and speed up the shift towards a sustainable, efficient, and economically viable electricity supply.
At the event, Wale Edun, the finance minister and coordinating minister of the economy, highlighted that this agreement is a major move in tackling energy poverty in Africa.
“This is one of the first tangible actions we can point to at this summit, which will culminate in the Dar es Salaam Declaration,” Edun mentioned.
“Today’s agreement will bring electricity access to 400,000 people, and we all know how transformative that is.
“I encourage us to keep up this momentum of doing rather than merely saying.”
Edun gave a shoutout to Ajay Banga, the president of the World Bank, and Akinwumi Adesina, who heads the African Development Bank (AfDB), highlighting how crucial their work has been in pushing the initiative forward.
Adebayo Adelabu, the minister of power, emphasized the importance of teamwork between the public and private sectors to ensure everyone in Africa has access to energy.
He pointed out that closing the $30 billion funding gap needed for Nigeria’s energy plan under Mission 300 will take a united effort.
“The name of the game is about partnership, cooperation, and collaboration. No single entity can do it alone,” the minister said.
“Government alone cannot make this available. It requires cooperation and collaboration with the private sector, both locally and internationally.”
Adelabu emphasized how crucial it is to blend public and private funding, like equity and debt financing, to tackle the energy demands of the country.
Chantel Abdul, the CEO of Solaris and a voice for the DRE companies, also spoke up, reiterating the organization's dedication to ensuring energy access for communities that are often overlooked.
Abdul praised the teamwork among development partners in backing the distributed energy solutions (DES) program, which focuses on delivering off-grid electricity to those who need it the most.
“This is evidence of our development partners’ commitment to the M-300 agenda, as outlined by the Minister of Finance. Connecting 300 million Africans, including Nigerians, to electricity is a passion that Solaris shares deeply,” Abdul said.
She praised IFC for its support in offering bridge financing, which helps renewable energy companies expand their operations.
“This financing ensures that those of us building on the ground have the necessary capital, especially working capital, to invest in and scale our projects,” she mentioned.
The CEO emphasized Solaris’s commitment to building 500 mini-grids over the next two years, kicking off with 100 grids in the first year, with a goal of connecting at least 200,000 people.