British International Investment (BII), the United Kingdom’s development finance institution, has committed $7.5 million to a new financing facility aimed at expanding solar-powered mini-grids across Nigeria. This initiative, developed in partnership with US-based climate technology firm Odyssey Energy Solutions, seeks to address Nigeria’s severe electricity access gap, where an estimated 90 million people lack reliable power .
The funding will support the rollout of mini-grids and standalone solar systems under Nigeria’s Distributed Access through Renewable Energy Scale-Up (DARES) program, a World Bank-backed scheme aiming to provide 17.5 million Nigerians with improved energy access by 2030. The facility will enable local solar developers to procure high-quality equipment with minimal upfront costs, repaying through revenue generated once projects become operational .
BII’s West Africa Regional Director, Benson Adenuga, emphasized the urgency of the initiative: “Mini-grids powered by clean and affordable energy sources have a vital role to play in rapidly reducing [the electricity access] number” . Odyssey Energy Solutions will leverage its digital platform to streamline equipment procurement, supply chain financing, and logistics, helping developers accelerate deployment while maintaining technical standards .
This investment aligns with BII’s broader climate finance strategy, which mandates that 30% of its new commitments between 2022 and 2026 target climate-related projects. The UK government has also highlighted the partnership as emblematic of its growing trade and climate collaboration with Nigeria under the Enhanced Trade and Investment Partnership (ETIP) .
The mini-grid expansion is expected to create jobs, reduce diesel dependency, and support economic growth in rural communities. However, challenges remain, including currency volatility, limited local financing, and logistical bottlenecks. Nevertheless, the initiative represents a significant step toward achieving Nigeria’s renewable energy goals and universal electrification targets .
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