The Climate Finance Blending Facility (CFBF), a catalytic first loss multi-donor co-financing facility for off-grid clean energy projects in Nigeria, has enabled the mobilisation of long-term, local currency financing for CEESOLAR Energy Limited\u2019s off-grid renewable energy project in Cross River State. This marks the fifth transaction supported through the Facility, which is capitalised with \u00a310 million in concessional capital from the UK Foreign, Commonwealth & Development Office (FCDO), later strengthened by a US$10 million investment from British International Investment (BII) and a US$20 million counter- guarantee facility.<\/p>\n
The transaction will enable the construction and commissioning of four isolated solar hybrid mini-grids with a combined capacity of 760 kWp across underserved communities in Cross River State. Once operational, the mini-grids will electrify approximately 3,600 households and small businesses, create an estimated 561 jobs, and avoid over 737 tonnes of CO\u2082 emissions annually. This contributes directly to Nigeria\u2019s universal electrification agenda and supports the achievement of Sustainable Development Goal 7 (Affordable and Clean Energy).<\/p>\n
This milestone builds on the momentum of earlier projects financed through the CFBF, which has deployed approximately \u20a69 billion across four developers \u2014 Darway, Hotspot, ACOB, and Prado. Collectively, these projects have reached over 25,000 beneficiaries, created more than 2,300 jobs, and installed approximately 1.7 MW of off-grid solar capacity. The Facility has now generated a pipeline of approximately \u20a6243.31 billion across 23 developers seeking financing, demonstrating its catalytic role in mobilising additional capital for climate-aligned infrastructure and expanding distributed renewable energy (DRE) access nationwide.<\/p>\n
The CEESOLAR transaction also benefitted from InfraCredit\u2019s Construction Finance Warehouse Facility (CFWF) \u2014 a short-term bridge financing instrument funded by the Nigeria Sovereign Investment Authority (NSIA), designed to address construction-period liquidity gaps ahead of long-term refinancing supported by InfraCredit\u2019s guarantees. The combined application of the NSIA-funded CFWF and the FCDO-funded CFBF illustrates InfraCredit\u2019s integrated, end-to-end approach to unlocking capital for sustainable infrastructure projects.<\/p>\n
The CFBF, managed by InfraCredit, combines subordinated first-loss capital from FCDO and other development partners with technical assistance from FSD Africa and InfraCredit\u2019s\u2018AAA\u2019-rated guarantees to de-risk projects and mobilise long-term domestic institutional capital for distributed renewable energy across Nigeria.<\/p>\n
This transaction further reflects the strategic partnership between InfraCredit and the Africa Minigrid Developers Association (AMDA), aimed at improving access to long-term domestic financing for AMDA member developers. As an active member of AMDA, CEESOLAR is among the African-owned developers benefitting from this collaboration, which seeks to scale mini-grid and DRE deployment through innovative blended finance and credit enhancement structures.<\/p>\n
Mr. Jonny Baxter, UK Deputy High Commissioner in Lagos, said:<\/p>\n
\u201cWe are delighted that the UK-funded Climate Finance Blending Facility, managed by InfraCredit, continues to catalyse local currency debt for renewable energy infrastructure. The CFBF model for financing distributed renewable energy remains central to achieving Nigeria\u2019s energy transition and net-zero ambitions, and the UK is proud to support innovative financing that drives climate-resilient growth.\u201d<\/p>\n
Mr. Chibueze Ekeh, Chief Executive Officer of CEESOLAR Energy Limited, said:<\/p>\n
\u201cThis milestone reflects CEESOLAR\u2019s commitment to bridging Nigeria\u2019s energy gap through innovation and collaboration. With InfraCredit\u2019s support, we are proving that clean energy solutions can be impactful, commercially viable, and sustainable. Every community we electrify is a step towards powering productivity, supporting women and small businesses, improving healthcare delivery, giving children a better chance at education, and building a future where energy access impacts lives.\u201d<\/p>\n
Mr. Chinua Azubike, Chief Executive Officer of InfraCredit, said:<\/p>\n
\u201cInfraCredit is proud to support CEESOLAR, joining other indigenous distributed renewable energy developers we\u2019ve enabled to access long-term, affordable local currency financing. This transaction demonstrates the power of partnership \u2014 combining catalytic first-loss capital from FCDO, bridge financing from NSIA through the Construction Finance Warehouse Facility, and InfraCredit\u2019s guarantees, to unlock private investment in climate- resilient infrastructure.\u201d<\/p>\n
Mr. Olamide Niyi-Afuye, Chief Executive Officer of AMDA, said:<\/p>\n
\u201cThis milestone underscores the growing confidence in the capacity of AMDA\u2019s members to scale, and the power of local capital to drive sustainable energy access across the continent.\u201d<\/p>\n
The project is registered under the World Bank\u2019s Distributed Access through Renewable Energy Scale-up (DARES) Performance-Based Grant Programme administered by the Rural Electrification Agency (REA). InfraCredit and the REA signed a Memorandum of Understanding in August 2022 to collaborate on eliminating long-term financing bottlenecks for off-grid operators. Technical, legal, environmental, and social due diligence costs were supported by FSD Africa under a Technical Assistance Agreement with InfraCredit, aimed at reducing first-time issuer barriers and accelerating access to climate-aligned local currency debt.<\/p>\n
About CFBF:<\/b><\/p>\n
The Climate Finance Blending Facility is a catalytic facility capitalised with USD21.3 milion concessonal funding by the UK Foreign, Commonwealth & Development Office (\u201cFCDO\u201d) and the British International Investment (\u201cBIl\u201d) to mobilise additional funding from development partners to co-finance off-grid clean energy investments alongside InfraCredit\u2019s local currency guarantees in Nigeria.<\/p>\n
About CEESOLAR:<\/b><\/p>\n
CEESOLAR Energy Limited is a renewable energy company focused on providing energy access across Nigeria through renewable and decentralised energy systems. The Company commenced operations in 2017 and has installed a total capacity of 729.5kWp, consisting of mini grid installations and stand-alone solar for homes and businesses, with over 695 connections across Imo, Abia, Lagos, Cross River, Enugu, Bayelsa states, and the Federal Capital Territory (FCT).<\/p>\n
About InfraCredit:<\/b><\/p>\n
InfraCredit (www.infracredit.ng) was established in 2017 as a first-of-its-kind \u2018AAA\u2019(NG) rated specialised local currency infrastructure credit guarantee institution, created to support long-term local currency infrastructure financing in Nigeria. InfraCredit\u2019s guarantees enhance the credit quality of local currency debt instruments issued to finance eligible infrastructure- related assets. Its guarantees serve as a catalyst to attract long-term domestic institutional capital from pension funds, insurance firms, and other investors, thereby deepening Nigeria\u2019s debt capital markets. InfraCredit\u2019s investors include the Nigeria Sovereign Investment Authority, UK Foreign, Commonwealth & Development Office (through PIDG and MOBILIST), KfW Development Bank, Africa Finance Corporation, and African Development Bank, alongside domestic pension funds and insurance firms. As at April 2025, InfraCredit was listed as a public company and admitted to trading on the NASD. It maintainsthe highest domestic financial strength ratings accorded to any financial institution by Agusto & Co., Global Credit Ratings, and international rating agency, Fitch Ratings.<\/p>\n","protected":false},"excerpt":{"rendered":"
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