Azura Power has successfully closed Nigeria’s first fully-financed independent power project (IPP) following a range of transformative reforms of the country's power sector in recent years. The project is expected to unlock access to a more diverse range of funding sources for future deals.
Chief investment officer at the International Finance Corporation (IFC) Belen Castuera told IFLR that the significance of it being the first post-privatisation project was the impetus for the IFC’s involvement.
“A lot of local banks in Nigeria already have big exposures to the power sector, so it would be very difficult for them to support further projects,” she said.
“For this reason it was critical to create a structure international banks and development finance institutions (DFIs) would be comfortable with, to get the projects moving.”
The $876 million Azura-Edo IPP is the first in a long line of...