The Overseas Private Investment Corporation (OPIC) has signed a deal with Nova-Lumos, providers of off-grid electricity. The $15 million commitment is to finance Lumos’ activities to provide solar electricity to homes and small businesses in Nigeria.
This funding forms part of Secretary John Kerry’s Climate and Clean Energy Investment Forum.
Through $15 million in U.S. development finance and support of the Power Africa initiative, innovative private sector company will scale up clean, off-grid power access in Nigeria
The financing will enable Lumos to increase power access to the nearly 90 million Nigerians currently living without connection to the grid.
The Lumos offering “includes a home solar panel linked to an indoor storage and connection unit that allows customers to access significant amounts of power on-demand, day or night. The affordable Lumos service allows customers to utilize a “pay-as-you-go” model, in small amounts, by text message.”
Lumos’ business model is highly scalable in large part due to the company’s partnerships with incumbent mobile operators. In Nigeria, Lumos has partnered with MTN, Nigeria largest telecommunications company with over 60 million subscribers base.
This is the largest OPIC investment to the off-grid power sector in Africa, a key component of increasing energy access in a region where people are not grid-connected and the need for reliable power is especially acute.
“We are very excited about this major financing milestone in partnership with OPIC, which will enable us to accelerate our growth in Nigeria and improve the lives of millions,” said David Vortman, CEO and co-founder at Lumos.
“Lumos brings vision, innovation, and sound business sense to address the power access challenge in Africa,” said Elizabeth Littlefield, OPIC’s President and CEO.
“With a dedication to those who live off-grid or have unreliable power access, Lumos’ creative business model will positively impact millions with new affordable electricity access in homes, businesses, medical facilities, and schools.”