British International Investment (BII), the United Kingdom’s development finance institution and impact investor, has provided a $7m debt facility to Okra Solar to accelerate the expansion of clean and reliable electricity in underserved Nigerian communities.
The financing is expected to support the deployment of mesh-grid technology, potentially bringing electricity to 750,000 people in rural Nigeria who currently lack access to reliable power.
Nigeria has one of the world’s largest electricity access gaps, with an estimated 90 million people without reliable and affordable electricity. The investment is expected to help address the challenge by supporting the expansion of decentralised renewable energy solutions.
Under the arrangement, Okra Solar will use the facility to procure equipment for approximately 150,000 new electricity connections. The investment is also expected to significantly expand the company's operations, taking its connections more than 10 times above its current installed base of over 13,000 households, supported by more than 2.3 megawatts of installed capacity.
A major objective of the financing is to address the shortage of flexible working capital that often prevents distributed renewable energy companies from expanding their operations.
With access to upfront funding, Okra will be able to purchase manufacturing inputs and essential equipment in larger quantities, helping to reduce procurement costs and shorten delivery timelines to Nigeria from four months to approximately two months.
Speaking on the investment, the British Deputy High Commissioner in Lagos, Jonny Baxter, said access to dependable electricity remained critical to economic development, job creation and improved living standards.
“Reliable electricity is fundamental to economic growth, job creation and improved livelihoods. Yet millions of Nigerians still lack access to dependable power,” Baxter said.
He explained that the UK, through BII, was backing innovative Nigerian solutions capable of addressing the country's electricity challenges while promoting cleaner energy alternatives.
“Not only is this about expanding access to power, but it is also about clean power. More reliable power creates opportunities for businesses and entrepreneurs, which generates jobs and drives inclusive economic growth. And clean power means less pollution,” he added.
Baxter said the investment also demonstrated the strength of the UK-Nigeria partnership and their shared commitment to sustainable development, energy security and long-term prosperity.
Similarly, BII's Director and Head of Infrastructure and Climate Debt for Africa and South Asia, Geoffrey Manley, said access to appropriate financing was essential for renewable energy companies seeking to scale their operations.
“For innovative energy companies such as Okra, access to the right type of finance can be just as important as the technology itself,” Manley said.
He noted that the flexible facility would allow Okra to secure critical components earlier and in larger quantities, reducing costs and improving delivery efficiency.
“We believe this will help demonstrate the commercial viability of mesh-grids and establish the model as an increasingly important part of Africa’s distributed renewable energy market,” he said.
The investment comes as Nigeria intensifies efforts to expand electricity access through decentralised renewable energy initiatives, including the Distributed Access through Renewable Energy Scale-up programme.
The programme, implemented by the Rural Electrification Agency with support from the World Bank, provides results-based financing for new electricity connections, with mesh-grid projects among the eligible solutions.
Faster equipment delivery is expected to help Okra's developer customers complete projects earlier and access grant payments under the programme sooner. This could also reduce the cost of financing equipment purchases and improve the commercial viability of rural electrification projects.
Okra Solar's Chief Executive Officer, Afnan Hannan, said the financing would fundamentally change how the company procures equipment and responds to demand from developers.
“Every month a project is delayed is another month a community goes without power,” Hannan said.
He explained that the company previously waited until transactions were concluded before ordering components, usually in batches of a few thousand units.
“With BII’s facility, we are procuring long lead time components, batteries, and solar PV equipment upfront and in volume, reducing costs and having stock ready when a developer signs.
“Equipment reaches Nigeria in less than one-third of the time – getting the lights on sooner,” he said.