The push to expand Nigeria’s power sector and bridge the electricity gap received a major boost this week as British International Investment (BII), the United Kingdom’s development finance institution, in partnership with global energy platform Odyssey, unveiled a $7.5 million financing facility aimed at accelerating the deployment of mini-grids across the country.
This initiative is part of a broader grid expansion strategy to enhance access to clean and reliable energy for millions of underserved Nigerians, particularly in rural communities, while strengthening the nation’s energy transition agenda.
Nigeria, Africa’s largest economy, is also one of the most energy-poor countries in the world.
According to BII’s West Africa Regional Director, Benson Adenuga, an estimated 90 million Nigerians still lack access to electricity, a challenge that has slowed economic growth, deepened rural poverty, and stifled small-scale industries.
“Mini-grids powered by clean and affordable energy sources have a vital role to play in rapidly reducing that number,” Adenuga noted.
The grid expansion efforts are crucial to meeting the growing energy demands and improving the living standards of the population.
“This facility will help developers scale up projects that can transform communities and drive inclusive growth.”
Mini-grid expansion, localized energy systems powered largely by solar and other renewable sources—have emerged as one of the most cost-effective solutions for off-grid electrification.
Understanding the Importance of grid expansion, unlike the centralized national grid, mini-grids can be rapidly deployed, require lower infrastructure costs, and are easier to maintain in remote areas.
The launch of the $7.5m facility also reflects Britain’s growing commitment to Nigeria’s clean energy journey.
The Deputy British High Commissioner to Nigeria, Jonny Baxter, emphasized that the partnership aligns with the UK’s Enhanced Trade and Investment Partnership with Nigeria and underscores Britain’s role as a trusted global climate action partner.
“British International Investment has demonstrated its confidence in Nigeria’s clean energy sector through this investment,” Baxter said.
“This is a signal that opportunities for the private sector to drive forward the renewable energy revolution in Nigeria and across Africa are growing.”
Baxter further highlighted that UK financing is playing a pivotal role in unlocking green growth, particularly in developing economies that require sustainable infrastructure to meet their development goals.
For Odyssey, a company that currently works with over 3,000 installers and manages more than $3 billion in available finance on its platform, the partnership marks another milestone in its mission to bridge financing gaps for energy developers.
Odyssey’s co-founder and Managing Director, Piyush Mathur, explained that access to affordable financing has long been a stumbling block for clean energy developers in Africa.
“BII has demonstrated a progressive and practical approach to unlocking financing challenges in distributed energy,” Mathur said.
“Their support allows us to offer flexible financing options that meet developers where they are, so we can collectively accelerate electrification across Nigeria.”
He noted that Odyssey’s procurement solution—integrated into its end-to-end platform—would simplify access to funding, reduce overhead costs, and speed up project deployment, making the clean energy market more attractive to both investors and local communities.
The facility is expected to directly support rural electrification initiatives being championed by the Nigerian government and private partners.
By powering schools, clinics, small businesses, and households in remote communities, mini-grids can stimulate micro-enterprises, job creation, and improved living standards.
Energy experts argue that increasing electricity access through mini-grids could have a transformative impact on Nigeria’s economy.
Beyond reducing reliance on expensive and polluting diesel generators, the model could also improve agricultural productivity, enable digital inclusion, and enhance healthcare delivery in underserved areas.
Nigeria has long struggled with an underperforming national grid that suffers from poor transmission capacity, frequent breakdowns, and a huge infrastructure financing gap estimated at over $100 billion.
While government reforms and investments in large-scale power projects are ongoing, industry observers believe mini-grids offer a faster, more sustainable route to bridging the immediate energy deficit.
According to sector analysts, the BII–Odyssey collaboration demonstrates how private capital and innovative financing models can complement government-led interventions to address one of Nigeria’s most pressing developmental challenges.
“This is not just about providing electricity,” said Lagos-based energy consultant Chinwe Okonkwo.
“It’s about powering opportunity, enabling education, driving industrialization, and positioning Nigeria for a cleaner, more resilient energy future.”
The financing initiative also aligns with Nigeria’s broader Energy Transition Plan, which aims to achieve net-zero emissions by 2060 while ensuring universal access to affordable power.
By channeling funds into mini-grid development, the project contributes to both climate goals and social inclusion, ensuring that no community is left behind in the energy transition.
Industry insiders suggest that the $7.5m facility, though relatively modest compared to Nigeria’s financing needs, could serve as a catalyst for larger investments from international development partners, private equity firms, and impact investors looking to tap into Africa’s fast-growing renewable energy market.
With BII’s backing and Odyssey’s technical expertise, Nigerian mini-grid developers are set to gain improved access to flexible, affordable financing—removing one of the biggest barriers to scale.
The facility is projected to unlock dozens of new projects over the next few years, electrifying thousands of households and businesses.
As Nigeria works to close its massive energy gap, initiatives like this highlight the critical role of public-private partnerships and the importance of global collaboration in addressing energy poverty.
For millions of Nigerians still living in the dark, the BII–Odyssey facility could be the beginning of a brighter, more sustainable future.