British International Investment (BII), the UK’s development finance institution, is lending $7 million to Okra Solar, a company that provides mesh-grid technology for off-grid communities. The money is expected to help Okra procure equipment for about 150,000 new connections, potentially bringing electricity to 750,000 people in rural Nigeria.
This is a debt facility designed to help a company buy equipment at scale, shorten delivery times and prove that mesh-grids can work as a commercial model, not just a donor-funded experiment.
What a Mesh-Grid Actually Is
A mesh-grid is a small, interconnected electricity network. It combines solar generation, battery storage and smart controllers. Instead of each home relying on its own isolated solar system, neighbouring homes and businesses can share electricity through low-voltage connections.
The result is more power than a typical solar home system, but less infrastructure and cost than a conventional mini-grid. For rural communities, that can mean lights, phone charging, fans, televisions and small machines without waiting years for the national grid to arrive. Mesh-grids are also eligible under Nigeria’s Distributed Access through Renewable Energy Scale-up programme, known as DARES, which is implemented by the Rural Electrification Agency with World Bank support.
The Problem With Conventional Mini-Grids
Nigeria has one of the world’s largest electricity access deficits. An estimated 90 million people lack reliable and affordable power. Many of them live in small, scattered communities where extending the national grid is expensive and slow.
Conventional mini-grids can also be costly to deploy in these areas. Solar home systems are cheaper, but they often produce too little power for businesses that need to run freezers, welding machines, water pumps or milling equipment. That gap between a solar lantern and a full mini-grid is where Okra’s technology fits.
A $7 Million Shot in the Arm for Procurement
BII’s support is a debt facility, not a grant. That distinction matters. Okra is borrowing money that is expected to be repaid, which signals that lenders see a commercial business with a viable model, not simply a development project.
The facility will allow Okra to buy critical equipment upfront and in larger volumes, including long-lead-time components such as batteries and solar photovoltaic equipment. In the past, Okra would order components only after a project transaction had closed, often in batches of a few thousand units. That model created delays. Communities waited while equipment was manufactured, shipped and cleared.
Geoffrey Manley, director and head of infrastructure and climate debt for Africa and South Asia at BII, said access to the right type of finance can be just as important as the technology itself. He explained that the flexible facility will let Okra procure critical components earlier and at greater scale, reducing costs and shortening delivery times.
From 13,000 Connections to 150,000
Okra currently serves more than 13,000 households and operates over 2.3 megawatts of installed capacity. The new financing is expected to help it reach approximately 150,000 connections, more than ten times its current customer base.
The potential impact is 750,000 people gaining electricity for the first time in rural Nigeria. Okra chief executive Afnan Hannan said every month a project is delayed is another month a community goes without power. Until now, he said, the company would order components only once a transaction had closed, in small batches. With BII’s facility, Okra is procuring batteries and solar equipment upfront and in volume, keeping stock ready when a developer signs. Equipment now reaches Nigeria in less than a third of the previous time, he added.
Why This Deal Matters Beyond Nigeria
BII also hopes the deal will demonstrate the commercial viability of mesh-grids and establish the model as an increasingly important part of Africa’s distributed renewable energy market. If it works, Nigeria could become a proof point for other African countries facing similar electricity access challenges.
Policy support is beginning to line up behind the model. Nigeria’s DARES programme provides $750 million in World Bank-funded grants and aims to connect 3.2 million households over five years. That is a significant market signal for companies like Okra. But policy alone does not solve the problem. Companies still need working capital, equipment and the ability to deliver projects quickly. BII’s facility is aimed squarely at that delivery bottleneck.
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Addressing Procurement Difficulties
Financing is only one piece of the puzzle. Nigeria’s economic environment remains difficult. Currency movements, inflation and import costs can affect equipment prices. Developers must navigate permits, community agreements and payment collection. Rural customers have limited incomes, so affordability and flexible payment plans are essential. Mesh-grids also need maintenance, spare parts and skilled technicians.
Also, BII’s facility addresses a procurement bottleneck by giving Okra something many off-grid companies lack: the ability to buy ahead of demand and move faster when projects are signed. That could lower costs, reduce delays and make mesh-grids more attractive to developers and financiers alike.
