British International Investment (BII), the UK’s development finance institution, has pledged $7.5 million (€6.4 million) to a financing facility with US-based climate technology firm Odyssey Energy Solutions, a move expected to accelerate the rollout of renewable mini-grids across Nigeria.
The fresh capital will support the installation of thousands of solar mini-grids and standalone solar systems under Nigeria’s Distributed Access through Renewable Energy Scale-Up (DARES) programme, an initiative backed by the World Bank and aimed at providing improved energy access to 17.5 million Nigerians.
Under the scheme, developers of mini-grids will be able to procure high-quality solar panels and energy storage systems without heavy upfront costs. Instead, repayment obligations will begin only after new projects start generating revenue — a structure designed to ease financing barriers in Nigeria’s off-grid energy sector.
“About 90 million people in Nigeria do not have access to electricity. Mini-grids powered by clean and affordable energy sources have a vital role to play in rapidly reducing that number,” said Benson Adenuga, West Africa regional director at BII. “I am delighted that BII is partnering with Odyssey to accelerate the development of such projects.”
Boost for climate finance
The investment forms part of BII’s broader climate finance strategy. The institution, which holds total net assets of £9.87 billion (€11.4 billion) and investments across more than 1,600 businesses in 66 countries, has committed to directing at least 30% of its new investments into climate-related projects between 2022 and 2026.
For Nigeria, Africa’s most populous nation and largest economy, the investment underscores growing international interest in decentralised renewable energy solutions as a pathway to bridging the country’s severe electricity access gap. Despite boasting abundant natural gas and renewable energy potential, roughly 40% of Nigerians — about 90 million people — still live without reliable electricity, forcing many to rely on costly and polluting diesel generators.
Odyssey’s role
Headquartered in Boulder, Colorado, Odyssey Energy Solutions operates a digital platform that connects solar developers with equipment manufacturers, financiers, and governments to streamline renewable energy project deployment. The company, which manages more than $3 billion in financing across over 50 countries, serves a global network of more than 3,000 renewable energy firms.
“BII has demonstrated a progressive and practical approach to unlocking financing challenges in distributed energy,” said Piyush Mathur, co-founder and managing director of Odyssey Energy Solutions. “Their support allows us to offer flexible, affordable financing options that meet developers where they are, so that we can collectively accelerate electrification across Nigeria.”
Odyssey’s involvement is expected to not only provide developers with cheaper access to equipment but also create an ecosystem that ensures quality standards, lowers transaction costs, and accelerates the speed at which projects move from design to deployment.
Private sector momentum
Nigeria’s mini-grid sector has attracted increased attention in recent years, with policymakers, investors and donors viewing decentralised renewable energy as a scalable solution to the country’s chronic power deficits. The government has also signalled stronger support through programmes like DARES, aimed at mobilising private capital into energy access projects.
For the UK government, the investment is also a diplomatic signal of support for Nigeria’s energy transition. “This is a signal that opportunities for the private sector to drive forward the renewable energy revolution in Nigeria and across Africa are growing,” said Jonny Baxter, the UK’s deputy high commissioner in Lagos.
Analysts note that while the investment may be modest in scale compared with Nigeria’s multi-billion-dollar energy access needs, it highlights the importance of blending public, private, and donor capital to unlock the sector. With improved access to patient capital, developers can deploy projects more quickly in underserved communities, where households and small businesses are often willing to pay for reliable electricity.
Growing African footprint
BII’s latest move follows a string of recent commitments on the continent. In July, the institution joined Sweden’s Swedfund and Zambia’s National Pension Scheme Authority in launching a $70 million investment company to provide long-term, flexible financing for small and medium-sized enterprises in Zambia.
For Nigeria, stakeholders say the $7.5 million commitment could act as a catalyst by crowding in further private capital into distributed renewable energy. With demand for reliable, affordable power surging alongside population growth, mini-grids are increasingly seen as both a commercial opportunity and a social necessity.
As Adenuga of BII put it: “The potential for clean energy to transform lives and economies in West Africa is immense. By partnering with Odyssey, we are taking one more step toward making universal energy access in Nigeria a reality.”
