UCIF, Husk Ink ₦5 Bn Local Currency Debt Deal to Scale Solar Minigrids in Nigeria

United Capital Infrastructure Fund (UCIF) has signed a ₦5 billion (about $3.2 million) revolving local currency debt facility with Husk, the world’s largest private-sector minigrid operator, in a first-of-its-kind financing arrangement aimed at accelerating the scale-up of community solar minigrids in Nigeria.

The facility, announced on the sidelines of the Africa Climate Summit in Addis Ababa, is the first Naira-denominated debt instrument for the sector. Husk becomes the first minigrid developer in Nigeria to secure such funding from UCIF, which is looking to deepen its role in clean energy financing.

The 10-year revolving loan is expected to be deployed twice over the tenor, with Husk initially using the capital to build standalone minigrids before expanding into interconnected minigrids and commercial and industrial solar projects.

“This maiden investment in the renewable energy sector underscores our commitment to advancing Nigeria’s clean energy transition,” said Uchenna Mkparu, CIO and Fund Manager, UCIF. “By offering affordable, long-term, Naira debt to a market leader like Husk, we are enabling scalable energy access for households, SMEs, farmers, and underserved communities. We aim to replicate this structure to deliver up to 100 MW of clean power by 2030.”

Husk CEO & Co-Founder Manoj Sinha called the deal a turning point for the industry: “Access to affordable, long-term, local currency capital has long been a bottleneck. This facility marks a new era and strengthens our Africa Sunshot initiative to build, own, and operate 1,000 minigrids in Nigeria.”

UCIF, a ₦150 billion close-ended fund managed by United Capital Asset Management, provides long-term local currency debt for transformative infrastructure projects. Husk, meanwhile, is expanding rapidly across Asia and Africa, with ambitions to become a leading distributed renewable energy provider for underserved markets.