US-All On commits $5m to PowerGen mini-grids, expanding solar access for off-grid communities in Nigeria

All On committed $5 million on Sept. 16, 2026, to PowerGen Renewable Energy Nigeria Limited to expand solar mini-grids in Nigeria’s off-grid communities. The investment, structured as a mezzanine facility, aims to support up to 6,000 electricity connections and deliver around 9 megawatts of generation capacity, All On said.

According to All On, the funding will enable PowerGen Renewable Energy Nigeria Limited to provide up to 6,000 new electricity connections, delivering an estimated 9 megawatts of generation capacity to rural and peri-urban communities. The projects are expected to benefit approximately 41,000 people, including households, businesses, and public institutions, while creating about 470 jobs related to the construction, operation, and maintenance of the mini-grids.

The $5 million investment from All On, an independent impact investing company focused on underserved off-grid markets, is structured as a mezzanine facility aimed at supporting both isolated and interconnected solar mini-grid projects in Nigeria.

PowerGen operates a renewable energy platform across Nigeria, Kenya, Sierra Leone, and the Democratic Republic of Congo, with this latest capital specifically targeting an expansion of its Nigerian operations. The $5 million commitment forms part of a broader $60 million PowerGen platform supported by multiple investors, including Impact Fund Denmark, ElectriFi, SEFA, and InfraCo, to scale mini-grids and distributed energy systems across Africa. Development finance institutions such as the African Development Bank, through SEFA, have provided equity-like reimbursable grants totaling $10 million to support PowerGen’s mini-grid expansion, according to platform financing records.

PowerGen’s mini-grids combine solar photovoltaic (PV) panels and battery storage to deliver distributed renewable energy (DRE) solutions designed to provide reliable power to off-grid and underserved communities. The company’s broader program aims to add approximately 33 megawatts of new solar capacity and about 67,500 new connections, mainly in Nigeria and the Democratic Republic of Congo, illustrating the scale of its expansion efforts. Prior financing efforts for PowerGen in Nigeria involved CrossBoundary Energy Access and other financiers, connecting 55,000 rural dwellers through 28 mini-grids, according to project data.

The All On investment complements earlier Series C and platform investments, including equity and concessional finance, that support mini-grids, metro grids, and commercial and industrial energy solutions in Nigeria. This financing approach aligns with Nigeria’s off-grid and mini-grid policy framework, particularly the Nigeria Electrification Project (NEP) and the Rural Electrification Agency (REA) framework, which provide performance-based grants per new connection to incentivize private mini-grid development. NEP grant support is structured at approximately $350 per new connection, according to REA documentation, and the agency has commissioned solar hybrid mini-grids, including interconnected projects such as the 352.24-kilowatt peak plant in Toto, Nasarawa State.

All On’s collaboration with PowerGen fits into Nigeria’s broader strategy to displace diesel generation and address critical energy access gaps through private-sector-led mini-grid investments. The solar mini-grids aim to reduce dependence on diesel generators, cutting fuel costs and local air pollution while improving power reliability for households and businesses. Beneficiaries are expected to experience enhanced quality of life, extended business operating hours, and improved access to digital and financial services enabled by more reliable electricity, All On stated.

The investment also supports productive use of electricity by commercial and industrial customers, which is intended to stimulate local economic activity in off-grid communities. The creation of approximately 470 jobs linked to the new power infrastructure is an additional socio-economic benefit cited by All On. These jobs encompass roles in construction, operation, and ongoing maintenance of the mini-grids.

All On is recognized as Nigeria’s leading off-grid energy access investor, with a consistent track record of financing solar home systems and mini-grid projects. Beyond the PowerGen deal, All On has co-financed initiatives such as the DART program, committing $5 million alongside $20 million from the Global Energy Alliance to expand distributed renewable energy. For example, a 350-kilowatt mini-grid in the Chito community of Benue State, backed by $1 million from DART, is connecting over 7,000 households and other customers, demonstrating the scale of All On-supported projects.

All On frequently uses blended finance structures that combine commercial instruments and concessional capital, similar to the mezzanine facility deployed for PowerGen. The company also runs the Off-Grid Energy Innovation Challenge, which offers between $200,000 and $1 million in blended funding per company, underscoring its ongoing role as a recurring financier in Nigeria’s off-grid energy sector.

The $5 million commitment to PowerGen mini-grids was announced on Sept. 16, 2026, as part of a coordinated effort to accelerate energy access, job creation, and climate-aligned infrastructure development in Nigeria’s underserved regions. This investment fits within a larger ecosystem of capital and policy support aimed at scaling distributed renewable energy solutions to close Nigeria’s electricity access gap.