IFC proposes $8.6 million financing for Nigerian mini-grid developer Nayo Tropical Technology

International Finance Corporation (IFC), the private investment arm of the World Bank Group, is considering up to $8.6 million in debt financing for Nigerian renewable energy company Nayo Tropical Technology Ltd. to support the development of 14 solar mini-grids with a combined capacity of 14 MW across Nigeria.

The proposed investment, disclosed on September 24, 2026, would support projects in Enugu, the Federal Capital Territory, Ondo and Niger states, with a total estimated project cost of $29.7 million. The investment remains pending approval.

IFC targets expansion of Nayo’s mini-grid portfolio

IFC’s proposed financing would comprise a secured revolving debt facility, including an A Loan of up to $5.8 million for IFC’s own account and $2.8 million from a parallel lender.

The financing forms part of IFC’s up to $200 million DARES Platform, which is designed to provide similarly structured debt financing to mini-grid developers and operators. The proposed Nayo projects are expected to receive performance-based grants under the World Bank’s Nigeria Distributed Access through Renewable Energy Scale-up (DARES) programme.

The World Bank’s DARES programme aims to provide more than 17.5 million Nigerians with new or improved electricity access through distributed renewable energy solutions.

Nayo has delivered 14 mini-grid projects

Founded in 1997 and incorporated in 2004, Nayo develops, owns and operates solar mini-grids and commercial and industrial solar projects in Nigeria.

According to IFC’s project disclosure, the company has implemented 14 mini-grid projects under the Nigeria Electrification Project, resulting in 13,642 electricity connections. Nayo is owned 60% by Anayo Okenwa and 40% by Nnenna Orlu.

The proposed expansion comes as Nigeria continues to develop its distributed renewable energy market. The World Bank says its Nigeria Electrification Project supported 125 mini-grids and more than one million solar home systems, providing electricity access to more than 5.5 million Nigerians.

Investment targets Nigeria’s electricity access gap

IFC expects the proposed projects to improve the availability, reliability and affordability of electricity for consumers without adequate access to power while generating greenhouse-gas emissions savings.

The financing is also intended to accelerate the rollout of mini-grid projects by providing U.S.-dollar funding for construction costs in a sector where IFC says comparable foreign-currency financing remains limited.

Beyond financing, IFC plans to support Nayo’s corporate governance and environmental and social management systems as the company scales its operations.

The proposed project is classified as Category B under IFC’s environmental and social framework, reflecting impacts that are expected to be limited and generally site-specific.

If approved, the investment would deepen Nayo’s role in Nigeria’s expanding mini-grid market while bringing additional commercial and development-finance capital into distributed renewable energy infrastructure.