A credit facility worth $80 million but fully Naira-denominated has been secured by Sun King to deepen solar access in Nigeria through its pay-as-you-go model.
The loan was facilitated by International Finance Corporation (IFC) and Stanbic IBTC Bank, with the former contributing $50 million.
Through the funding support, off-grid customers will access affordable solar solutions through Sun King in Nigeria.
The reason for providing the loan in local currency is to protect Sun King from foreign exchange risks, allowing its clients and customers to pay in small instalments, which improves affordability and capital efficiency, particularly for low-income and rural consumers.
The investment supports the Mission 300 initiative, which aims to connect 300 million people in Sub-Saharan Africa to electricity by 2030.
The facility falls under Sun King’s Sustainable Financing Framework, which has received a ‘Very Good’ Sustainable Quality Score from Moody’s, recognising its strong contribution to sustainability and climate goals.
Via flexible pay-as-you-go payment options, customers repay the cost of solar systems over 12 to 24 months through daily, weekly, or monthly instalments. Customers can pay as little as $0.21 a day via mobile money or cash.
This model lowers the financial barrier to clean energy and broadens access among underserved communities. To date, Sun King has extended $1.2 billion in loans to its customers across Africa.
In Nigeria, where nearly 40 per cent of the population lacks access to electricity, demand for affordable solar solutions is growing rapidly. The facility will support Sun King’s expansion in the country, especially in hard-to-reach communities.
“Millions of Nigerians still live without reliable access to electricity, which limits opportunity and undermines resilience.
“This investment enables scalable local-currency solutions that empower households and businesses with clean, affordable solar power.
“Beyond energy access, it supports rural employment, boosts productivity, and brings us closer to our shared goal of inclusive, sustainable development,” the IFC Regional Director for Central Africa and Anglophone West Africa, Dahlia Khalifa, stated.
“At Stanbic IBTC, we are proud to strengthen our partnership with Sun King through this transformative $80 million facility, which will empower millions of Nigerians with access to clean, reliable, and affordable solar energy who would otherwise struggle to access power.
“This collaboration underscores our commitment to fostering innovative solutions that address critical energy challenges in Nigeria while driving economic growth and improving the quality of life for underserved communities.
“By enabling households and small businesses to access solar power through flexible financing options, we are helping to build a more inclusive and sustainable future for Nigeria,” the chief executive of Stanbic Bank IBTC Capital Limited, Oladele Sotubo, said.
The co-founder of Sun King, Anish Thakkar, said, “Off-grid solar provides the fastest and most scalable pathway to universal electrification across Africa.
“This investment exemplifies the kind of bold, all-hands-on-deck approach required to deliver reliable, affordable energy to millions at the pace Mission 300 calls for.
“With structured financing tailored to local needs, we can dismantle affordability barriers and scale up the proven impact of off-grid solar solutions. We commend IFC and Standard Bank for their leadership in advancing sustainable energy access.”
Sun King is a leading off-grid solar provider, which designs, distributes, and finances solar systems across over 40 countries.
With a network of more than 29,500 agents across Africa, the company has sold over 27 million solar products.
The company sells a range of cost-effective solar products, from solar home systems that offer multi-room lighting and phone charging to powerful rooftop solar systems that provide power equity with the grid.