InfraCredit Guarantees Debt for First Electric’s Mesh-Grid Solar Project
InfraCredit, Nigeria’s leading ‘AAA’-rated infrastructure credit guarantee institution, has provided credit enhancement for a local currency debt issuance by First Electric Power and Automation Services Limited. This support comes through a co-financing arrangement with the UK-backed Climate Finance Blending Facility (CFBF), marking the facility’s sixth transaction and its inaugural investment in innovative mesh-grid clean energy infrastructure.
The funding will enable the development and commissioning of 20 mesh-grid electricity networks, delivering a combined solar capacity of 724.8 kWp to underserved communities in Gombe, Nasarawa, and Ondo states. Upon completion, the initiative is projected to provide reliable electricity access to approximately 5,156 households and small businesses, generate 616 direct jobs, and reduce annual CO₂ emissions by an estimated 762 tonnes—directly supporting Nigeria’s push for universal electrification and advancing Sustainable Development Goal 7 (Affordable and Clean Energy).
Launched with £10 million in concessional capital from the UK Foreign, Commonwealth & Development Office (FCDO) and bolstered by a $10 million investment from British International Investment (BII) plus a $20 million counter-guarantee, the CFBF has proven highly effective in mobilising private capital for distributed renewable energy. Previous transactions have deployed around N12 billion across five developers, benefiting over 28,000 people, creating more than 2,900 jobs, and installing roughly 1.8 MW of off-grid solar capacity.
With this latest deal, the facility’s cumulative impact is set to reach nearly 36,000 households and businesses, over 4,000 jobs, and more than 3,300 tonnes of avoided carbon emissions annually. The CFBF now supports a robust pipeline of approximately N243.31 billion in projects from 23 developers, underscoring its catalytic role in scaling climate-aligned infrastructure and expanding clean energy access across Nigeria.
UK Deputy High Commissioner in Lagos, Jonny Baxter, highlighted the facility’s pioneering status: “The CFBF continues to demonstrate its position as a trailblazer for power sector solutions, with this first mesh-grid investment designed to reduce costs and enhance distributed renewable energy delivery in rural and remote areas.”
InfraCredit CEO Chinua Azubike added: “This guarantee for First Electric underscores the growing maturity and scale of the CFBF platform in financing distributed renewable energy. It represents a significant step toward sustainable, inclusive energy solutions for Nigeria’s underserved communities.”
This milestone reinforces the power of blended finance in driving Nigeria’s energy transition and achieving equitable access to clean power.
