British International Investment (BII), the UK's development finance institution, has announced a $7m debt facility to Okra, a provider of mesh-grid technology for off-grid communities. This investment aims to accelerate access to reliable and clean electricity in Nigeria, primarily. Nigeria faces a significant electricity access deficit, with approximately 90 million people lacking reliable and affordable power.
The investment is expected to enable Okra to procure equipment for around 150,000 new connections, potentially providing electricity to 750,000 people in rural Nigeria for the first time. Okra's current installed base includes over 13,000 households and 2.3MW of installed capacity. The facility is anticipated to help the company achieve over 10x its connections. BII's financing addresses a key barrier to scaling distributed renewable energy: access to flexible working capital to procure equipment.
The British Deputy High Commissioner in Lagos, Mr Jonny Baxter, emphasized the importance of reliable electricity for economic growth, job creation, and improved livelihoods. He noted that millions of Nigerians still lack access to dependable power. The UK, through BII, is supporting innovative Nigerian solutions to close this gap. The investment not only expands access to power but also promotes clean power, reducing pollution and driving inclusive economic growth.
Geoffrey Manley, Director and Head of Infrastructure & Climate Debt at BII, highlighted the significance of access to the right type of finance for innovative energy companies like Okra. The flexible facility will enable Okra to procure critical components earlier and at greater scale, reducing costs and shortening delivery times. This investment demonstrates the commercial viability of mesh-grids and establishes the model as an increasingly important part of Africa's distributed renewable energy market.
The investment comes as Nigeria expands distributed renewable energy through initiatives like the Distributed Access through Renewable Energy Scale-up programme, implemented by Nigeria's Rural Electrification Agency with World Bank support. Mesh-grids are eligible under the programme, which provides results-based financing to support new electricity connections. Faster equipment delivery will help Okra's developer customers bring projects online and access results-based grant payments sooner.
Afnan Hannan, CEO of Okra Solar, noted that the facility will enable the company to procure long lead time components, batteries, and solar PV equipment upfront and in volume, reducing costs and having stock ready when a developer signs. This will significantly shorten equipment delivery times to Nigeria from four months to approximately two months. Hannan emphasized that every month a project is delayed is another month a community goes without power.
The partnership between BII and Okra reflects the strength of the UK-Nigeria partnership and their shared commitment to sustainable development, energy security, and long-term prosperity. The investment is expected to have a positive impact on Nigeria's energy sector, promoting economic growth, job creation, and improved livelihoods. Key points include:
Key points
- BII invests $7m in Okra to expand clean energy access in Nigeria.
- The investment aims to provide electricity to 750,000 people in rural Nigeria.
- The facility will enable Okra to procure equipment for around 150,000 new connections.
