Development Finance Corporation Grants Lumos $35m Funding for Solar Power Expansion in Nigeria

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Solar system provider, Lumos has announced $35 million in new financing from the US International Development Finance Corporation (IDFC) to expand its existing market for clean and reliable solar power in Nigeria.

Lumos Group chief executive officer, Alistair Gordon said, the funding from DFC will enable people throughout Nigeria to seize the opportunities that come with access to reliable and affordable power.

“Access to energy is the foundation for a high quality of life, good healthcare, education, and increased income. Our ultimate goal at Lumos is to provide power for everyone,” he said in a company statement.

He explained further that the new funding will enable Lumos to produce 160,000 additional solar home systems to meet the ever-increasing demand from homes and businesses across the country.

Currently, more than 160 million people in Nigeria have poor or no access to electricity and they are expected to benefit from the new development.

The new Lumos solar home systems will enable close to a million people to switch to clean energy, contributing to economic growth and sustainable development in the country.

The company said the project is aligned with the Nigerian government’s plans to connect five million households to solar power, as announced in June.

DFC managing director for Africa Worku Gachou said: “Access to power is a fundamental need across Africa and is even more urgent as Covid-19 continues to impact communities across the continent.

“Supporting Lumos will empower one million people across Nigeria by delivering access to reliable and affordable energy. Together, we can help unlock Africa’s enormous potential for growth.”

The DFC financing announcement follows funding from Dutch entrepreneurial development bank FMO, announced in August. The FMO funding is projected to more than double Lumos’ customer base in Côte d’Ivoire and West Africa.

Lumos CFO and Group COO Shmulik Kollender said: “We thank DFC for its continued support of our vision and approach. Our longstanding partnership with DFC had already allowed Lumos to command a market leading position in the largest off-grid market in Sub-Saharan Africa.

“DFC financing is even more important these days. In light of the impact that Covid-19 has had on our customers, there is a real need for impact-oriented investors that can share our vision to eliminate energy poverty in the country.”

By Chibisi Ohakah, Abuja

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