Green sukuk is at the forefront of InfraCredit's support for Prado Power Limited’s Green Infrastructure Forward Ijarah Lease Sukuk, a landmark initiative to expand renewable energy access in Nigeria. This Shari’ah-compliant instrument funds solar-powered mini-grids in underserved communities, fosters sustainable development, and advances the country’s electrification and net-zero emission goals.
A New Era for Green Sukuk in Nigeria
InfraCredit — a leading infrastructure credit guarantee institution — has achieved a significant milestone with its support of Prado Power Limited’s Green Infrastructure Forward Ijarah Lease Sukuk. This groundbreaking initiative is a major step toward expanding renewable energy access in Nigeria. The financing, secured under a £10 million Climate Finance Blending Facility funded by the United Kingdom's Foreign, Commonwealth, and Development Office (FCDO), highlights the innovative use of green sukuk to drive sustainable development.
Green sukuk — an Islamic finance instrument — is gaining traction as a powerful tool for funding eco-friendly projects. This Shari’ah-compliant financial model ensures non-interest-based returns while supporting initiatives that reduce greenhouse gas emissions and promote clean energy. By leveraging green sukuk, InfraCredit and its partners aim to unlock domestic institutional investments for clean energy projects. This approach aligns with Nigeria's electrification goals and its commitment to achieving net-zero emissions by 2060.
The transaction marks the first blended local currency Green Infrastructure Forward Ijarah Lease Sukuk in Nigeria. It will fund solar-powered mini-grids and productive-use hubs in underserved communities across Benue and Akwa Ibom states. The initiative addresses critical energy access challenges while driving socio-economic progress in rural areas.
The project benefits from InfraCredit’s “AAA”-rated guarantee, which enhances the credit profile of the sukuk. This reduces the risks associated with the transaction and draws institutional investors to the clean energy sector. The Climate Finance Blending Facility provided subordinated first-loss capital, thus reducing the cost of capital for the project.
Transformative Impact of the Project
The seven-year guaranteed sukuk will finance the construction, installation, and commissioning of four solar-hybrid mini-grids with a combined capacity of 850 kWp. These mini-grids will electrify 15,801 unserved households and small businesses, create 242 jobs, and reduce greenhouse gas emissions by 893.53 tonnes annually.
By supporting rural electrification, the project contributes directly to the United Nations Sustainable Development Goals (SDGs), including SDG 7 (affordable and clean energy), SDG 8 (decent work and economic growth), and SDG 13 (climate action).
Prado Power’s CEO, Mr. Washima Mede, expressed enthusiasm for the project. He emphasized the importance of integrating energy infrastructure investments with community development. “This initiative is not just about energy access. It is also about creating jobs and improving livelihoods,” he said. The project will also support smallholder farmers and rural dwellers by enabling access to productive-use equipment like threshers and de-huskers, enhancing agricultural productivity.
UK and REA Support for Green Sukuk Development
The British Deputy High Commissioner in Lagos, Mr. Jonny Baxter, highlighted the significance of the initiative. “This project underscores the critical role of distributed renewable energy in providing reliable energy access to underserved regions. It boosts economic activities and ensures a safer environment,” he said. The UK-funded Climate Finance Blending Facility has played a pivotal role in mobilizing green-certified local currency debt for off-grid solar projects in Nigeria.
The Rural Electrification Agency (REA) also supported the transaction. REA’s Managing Director, Mr. Abba Aliyu, noted that the financing aligns with the agency’s vision of using innovative financial models to de-risk renewable energy projects. “This transaction represents a significant milestone in closing Nigeria’s energy access gap,” he said.
According to InfraCredit’s CEO, Mr. Chinua Azubike, the transaction demonstrates the potential of green sukuk in addressing energy transition challenges. “We are proud to support innovative climate-related Islamic finance products that tackle these challenges while creating jobs and expanding energy access,” he said. The sukuk is certified green by the Climate Bonds Initiative and verified by Agusto & Co., ensuring its compliance with global standards.
The green sukuk initiative represents a bold step toward achieving Nigeria’s universal electrification goals by 2030. It also aligns with the country’s climate action commitments. By leveraging innovative financing tools like green sukuk, InfraCredit and its partners are not only advancing renewable energy access but also driving socio-economic transformation.