A Nigerian firm, Daybreak Power Solutions, a subsidiary of Daystar Power Group, will receive $20 million from the International Finance Corporation (IFC) channeled into the provision of off-grid power in Nigeria.
This was disclosed in a statement posted on the website of the Nigerian Investment Promotion Commission (NIPC).
The statement noted that the plan was still under consideration by the organisation, however, once the fund receives regulatory approval, the fund would form a part of the $40 million Phase 1 capacity expansion project.
Breaking down the use of the funds, the website stated that the $20 million funds would be broken into two forms of disbursement: $10 million received in the local currency from the IFC, while the other half would be transmitted from the purse of the Canada-IFC Renewable Energy Program in Africa.
The financing of the off-grid power project mirrors the IFC’s launch of the Climate Change Investment Program for Africa (CIPA), a sustainable energy financing and advisory programme concentrated in sub-Saharan Africa, the statement described.
The growth of economies, the future of energy security, and green jobs will be influenced by renewable energy, a report by research firm, researchgate, stated.
The Nigerian company to receive the funds, Daystar Power, had earlier this year raised $38 million in Series B funding from stakeholders.
It also received funds from the Danish DFI’s Investment Fund for Developing Countries (IFU), Proparco, STOA – a joint venture formed by French public financial institutions – and Morgan Stanley.
