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CFBF's sixth transaction — and first mesh-grid project — backs First Electric's 20 mesh-grid networks across three states.
The Climate Finance Blending Facility (CFBF), a catalytic first-loss, multi-donor co-financing mechanism for off-grid clean energy initiatives in Nigeria, has facilitated long-term local currency financing for First Electric Power and Automation Services Limited. This represents the sixth transaction under the program and marks the inaugural mesh-grid infrastructure project supported by CFBF.
The initiative encompasses 20 mesh-grid electricity networks totaling 724.8 kWp of capacity across Gombe, Nasarawa, and Ondo States. Upon completion, the project is projected to provide electricity to approximately 5,156 households and businesses, generate roughly 616 jobs, and reduce annual carbon emissions by 762 tonnes.
Previous CFBF projects have deployed approximately ₦12 billion across five developers, reaching over 28,000 beneficiaries and establishing approximately 1.8 MW of off-grid solar capacity. The facility's current pipeline encompasses ₦243.31 billion across 23 developers.
Construction Finance Warehouse Facility
First Electric also received support from InfraCredit's Construction Finance Warehouse Facility, funded by the Nigeria Sovereign Investment Authority, which provided temporary liquidity during the construction phase before long-term refinancing.
""This transaction marks the Facility's first investment in innovative mesh grid projects, designed to lower the cost of distributed renewable energy solutions for rural and remote communities." — UK Deputy High Commissioner"
InfraCredit CEO Chinua Azubike said the guarantee represents "the Facility's first investment in mesh-grid infrastructure and underscores the scale and maturity the platform has now achieved" in financing distributed renewable energy across Nigeria. First Electric CEO Daniel Komolafe emphasized the company's commitment to "bridging Nigeria's energy gap through innovation and collaboration," demonstrating that clean energy solutions can be commercially viable and sustainable. AMDA CEO Olamide Niyi-Afuye added that the transaction "demonstrates the transformative power of strategic partnerships in advancing energy access" and provides a blueprint for scaling distributed renewable energy across Africa.
The project is registered under the World Bank's Distributed Access through Renewable Energy Scale-up (DARES) Performance-Based Grant Programme. Technical and due diligence costs received support from FSD Africa through a Technical Assistance Agreement aimed at reducing barriers for first-time issuers.
About the Organizations
Climate Finance Blending Facility: Capitalized with $21.3 million in concessional funding from the UK Foreign, Commonwealth & Development Office and British International Investment, the facility mobilizes capital through first-loss risk sharing alongside InfraCredit's local currency guarantees.
First Electric: Incorporated in 2019, this Nigerian renewable energy company designs, develops, and operates mesh-grids, microgrids, and stand-alone solar systems for rural communities, currently operating approximately 250 active Energy-as-a-Service connections across Lagos, Abuja, and Ondo States.
InfraCredit: Established in 2017 as a specialized local currency infrastructure credit guarantee institution, InfraCredit holds 'AAA'(NG) ratings and supports long-term local currency infrastructure financing in Nigeria through guarantees that attract domestic institutional capital.
