Finance & Capital Structure

The financial design absorbs the two currency risks that killed Katsina: a depreciating naira against dollar-priced inputs, and federal off-takers whose creditworthiness collapsed under sector-wide arrears.

Total project size

Anchor plant plus first three C&I sites: roughly $180 to $220M total construction cost. Solar PV modules and batteries account for ~45% of that; civil construction and balance-of-system another ~35%; land, permitting, financing, and development costs the remaining ~20%.

How the money is raised

Owners' money (~25% of total). JCM holds 60 to 70%, the Nigerian industrial co-investor holds 30 to 40%. Co-investor commitment closes in parallel with senior lender term sheets.

Senior lenders (~50%). USD loans from development finance institutions, repaid over 18 to 20 years. FinDev Canada anchors at roughly $30M, with IFC and EDC at roughly $30M each and AfDB at roughly $20M. Construction milestones release the funds in stages.

Naira commercial loans (~15%). A 5 to 7 year loan from a Nigerian bank (Stanbic IBTC or Access Bank). The naira-denominated repayment matches the portion of PPA revenue not indexed to USD.

Below-market-rate concessional loans (~10%). The Canada-IFC Renewable Energy Program for Africa or World Bank DARES. Below-market interest lowers the project's average borrowing cost by roughly 1.5 to 2 percentage points.

Revenue protection

PPAs are 15-year contracts, priced in USD with monthly naira-conversion adjustments. Carbon credit pre-sales from the voluntary market deliver $5 to $10M of USD revenue at financial close. A Central Bank of Nigeria-approved offshore account holds a buffer for loan repayments in USD.