International Finance Corporation (IFC) is proposing up to $12.5 million in financing for MySol Ignite Limited to accelerate the deployment of solar home systems across Nigeria, in an effort to support and expand electricity access in underserved communities.

The proposed four-year facility comprises a senior secured revolving loan of up to $7.5 million from IFC’s own account and a subordinated concessional loan of up to $5 million through the International Development Association’s Private Sector Window and IFC’s Concessional Capital Window.

The investment forms part of IFC’s up to $200 million Distributed Access through Renewable Energy Scale-up (DARES) financing platform, which provides similarly structured debt to mini-grid operators and solar home system companies. The project was disclosed on November 11, 2026, and is pending approval, with a projected board date of December 30.

MySol Ignite targets 600,000 solar home systems

MySol Ignite, a subsidiary of Ignite Energy Access Group, plans to deploy as many as 600,000 solar home systems in Nigeria. The systems are expected to qualify for performance-based grants under the World Bank-financed Nigeria DARES programme.

The company operates a decentralised distribution model combining community-based sales agents with retail outlets and service centres. As of March 2026, it had approximately 90 points of sale and had served around 225,000 solar home system customers since commencing operations in 2018.

Its network covers southern Nigeria and parts of the north, with further expansion planned. Ignite Energy Access Group, the parent company, operates across more than 10 African countries and has deployed over four million solar home systems, reaching approximately 20 million people following five strategic acquisitions.

IFC structures blended financing to manage investment risks

The proposed financing will support the company’s capital expenditure programme, with the total project cost estimated at $42 million. IFC’s concessional component is intended to improve the project’s risk-return profile and make it possible to scale a business model that faces significant risks in Nigeria’s emerging distributed renewable energy market.

IFC estimates that the concessional financing will represent a subsidy equivalent to approximately 2% of the total project cost. The facility is also expected to mobilise additional commercial financing, while providing dollar-denominated funding in an environment where foreign-exchange constraints limit access to such capital.

Beyond financing, IFC will support the company in meeting environmental and social standards and draw on its experience in solar home system markets across sub-Saharan Africa.

Project targets electricity access and emissions reductions

The investment is expected to improve the availability, reliability and affordability of electricity for Nigerian households and businesses without dependable access to power. IFC also anticipates environmental benefits through reduced greenhouse gas emissions and expects the programme to strengthen competition in Nigeria’s solar home system market.

As part of its due diligence, IFC conducted a review between March 26 and April 28, 2026. The process included meetings with Ignite’s management at its Victoria Island headquarters in Lagos, inspections of its warehouse and technical facility in Ogba, and visits to a household and a small commercial customer site in Badagry.

The review also covered customer service operations, grievance records and the company’s environmental and social risk-management policies. IFC said its assessment found that the company had the necessary governance competencies to manage potential risks associated with the investment.