On InfraCredit’s Sustainability Leadership in Nigeria
InfraCredit’s credit enhancement of Prado Power Limited’s Green Infrastructure Forward Ijarah Lease Sukuk marks a transformative milestone in Nigeria’s clean energy sector. By leveraging the £10 million Climate Finance Blending Facility funded by the United Kingdom Foreign, Commonwealth, and Development Office (FCDO), this innovative transaction demonstrates a robust commitment to sustainability, socio-economic progress, and the nation’s energy transition goals.
The Clean Energy Funding Programme spearheaded by InfraCredit is a pivotal force in Nigeria’s journey towards achieving universal electrification by 2030, in line with Sustainable Development Goal (SDG) 7. This transaction showcases a powerful alignment of private sector ingenuity, international development support, and public sector priorities. The introduction of the first blended local currency Green Infrastructure Forward Ijarah Lease Sukuk underscores InfraCredit’s dedication to unlocking domestic institutional investments for scalable renewable energy solutions.
Green Sukuk, a Shariah-compliant finance instrument, emerges as a groundbreaking tool for mobilizing climate finance. The Sukuk model not only appeals to ethical and Islamic investors but also fosters the development of eco-friendly projects with long-term viability. This innovative financing framework sets a precedent for sustainable energy investments, offering a blueprint for achieving net-zero emissions by 2060 and expanding energy access to unserved communities.
The socio-economic benefits of this initiative are profound. With the construction of four mini-grids and productive-use hubs across Benue and Akwa Ibom states, over 15,000 connections will transform the lives of rural dwellers and smallholder farmers. Access to reliable solar-powered energy fosters job creation, economic empowerment, and improved livelihoods. As highlighted by Washima Mede, CEO of Prado Power, this project ensures that infrastructure investments are intrinsically linked to socio-economic advancements.
The innovative financing model de-risks the renewable energy sector by blending catalytic first-loss capital with InfraCredit’s “AAA”-rated guarantees. This approach significantly reduces capital costs, making clean energy projects more accessible and financially sustainable. By addressing the financial barriers often associated with long-term infrastructure financing, this initiative paves the way for increased private-sector participation in Nigeria’s renewable energy landscape.
As Jonny Baxter, British Deputy High Commissioner in Lagos, noted, this transaction highlights the critical role of Distributed Renewable Energy (DRE) in boosting economic activities, providing energy access to underserved regions, and ensuring environmental safety. It underscores the potential of decentralized renewable energy solutions in advancing Nigeria’s electrification goals while contributing to global climate action efforts.
The Rural Electrification Agency (REA) lauded the transaction as a groundbreaking model for financing solar-powered rural infrastructure. Abba Aliyu, Managing Director of REA, emphasized the initiative’s alignment with the agency’s vision of leveraging innovative financial frameworks to de-risk the sector and enhance project sustainability. By attracting increased investments, the transaction reinforces the long-term viability of Nigeria’s renewable energy projects, helping bridge the energy access gap.
Chinua Azubike, CEO of InfraCredit, aptly described the Green Sukuk as a promising financial instrument capable of addressing energy transition challenges while creating jobs and expanding energy access. This transaction showcases InfraCredit’s leadership in developing climate-friendly Islamic finance products and underscores its pivotal role in accelerating Nigeria’s clean energy agenda.
InfraCredit’s support of Prado Power exemplifies a holistic approach to sustainability—one that integrates environmental stewardship, socio-economic development, and financial innovation. It is a testament to the transformative power of partnerships between local stakeholders, international development agencies, and the private sector.
This project embodies the essence of sustainable development: providing affordable, reliable, and clean energy to underserved communities while fostering economic growth and protecting the environment. It sets a benchmark for future projects, inspiring confidence in Nigeria’s ability to achieve its electrification and climate goals.
By leading the charge in innovative financing for renewable energy, InfraCredit is shaping a sustainable future for Nigeria. This exemplary initiative deserves commendation as a beacon of progress, innovation, and resilience. Through strategic collaborations and forward-thinking solutions, InfraCredit is driving the change needed to build a greener, more inclusive Nigeria.
