This section provides consolidated Frequently Asked Questions (FAQs) to guide analysts and sponsors in preparing project information at the origination and early-stage screening phase
Technology & eligible activities
Ten business models are eligible: Isolated Mini Grids, Interconnected Mini Grids, C&I / C&E Systems, Stand-Alone Solar (Households & SMEs), Solar for Telecom Towers, Mesh Grid Systems, Battery-as-a-Service, E-Mobility Solutions, and Energy-as-a-Service revenue models
⚠️ Note on SHS: InfraCredit does not prioritise traditional household-only SHS models due to shorter equipment lifecycles, volatile cash flows and poor long-term performance. Adapted models such as Mesh Grid or SSPU (productive use) are preferred.
Pure diesel-only systems or non-renewable projects without a renewable integration component.
InfraCredit typically considers loan facilities from ₦1 billion and above. Smaller projects may be aggregated under a portfolio structure.
Track record & operations
At least 3 years of O&M experience with one or more operational sites.
At least 200 customers, with collection efficiency of 90% or higher.
Growth plans may be acceptable, but the sponsor must demonstrate execution capacity — EPC/OEM partnerships, management depth, and credible deployment history.
Financial performance
Average annual revenue of at least ₦100 million over the past 3 years, positive EBITDA, and acceptable leverage ratios.
At least 20% of project cost in cash equity. Grants do not substitute for equity.
Debt tenor must be aligned with the useful life of assets and should not exceed the term of the PPA or offtake agreement. Typical tenors range from 5 to 15 years.
Ownership & governance
Full Ultimate Beneficial Ownership (UBO) disclosure reconciled with CAC filings is a Pre-NBC Blocker. Offshore parent *shareholding structures* must be fully identified and disclosed.
Politically Exposed Persons must be disclosed, with mitigation measures such as independent governance structures.
Board structure, auditor credentials, management CVs, and succession/key-man risk policies.
Contracts & offtakers
Yes. Executed agreements with a tenor of at least 10 years are required. MoUs are insufficient and will be flagged as a Pre-NBC Blocker.
Concentration risk must be mitigated — through offtaker credit quality, pass-through tariffs, or guarantees.
Productive use of energy (PUE)
PUE provides stable, higher-value loads such as agro-processing, milling, irrigation, cold storage, welding, and water pumping. It reduces reliance on residential demand, which is typically lower and seasonal.
- A PUE rollout plan (phased, typically starting 12–18 months after commissioning)
- A breakeven demand mix analysis (residential vs PUE customers)
- A pipeline of anchor PUE customers with LOIs or MoUs (e.g., rice millers, borehole operators, SMEs)
- Assuming PUE will materialise immediately from COD
- No anchor customers identified
- No plan for appliance financing/SME support
- Breakeven model only works if PUE scales instantly
- Provide separate load profiles for residential vs PUE
- Include tariff assumptions by segment
- Add sensitivity scenarios (e.g., PUE at 50% of forecast)
Grants & blended finance
Grants may form part of the capital structure but must be fully disclosed. The project must demonstrate viability under a scenario where grants are delayed or not received.
DREEF provides Technical Assistance (TA) grants, viability gap funding, and result-based finance for qualifying DRE projects. Sponsors should apply via the DREEF portal prior to NBC submission.
Concessional debt and grant components does not reduce the cost of capital. DSCR calculations must reflect the fully blended structure, including any subordinated tranches.
Documentation & format
Preliminary Information Document (PID), Land rights evidence “where applicable” should be added.
Models must be submitted in unlocked Excel format. All assumptions must be clearly labelled on a separate inputs sheet. Hard-coded values within formula cells are a red flag.
⚠️ Models that cannot be stress-tested due to locked cells will be returned prior to NBC review.
InfraCredit provides a PID template through the DRELT portal. Sponsors may use their own format provided it covers all required sections: project overview, technical summary, financial projections, ESG, legal structure, and risk matrix.
Project Rollout & Deployment
Yes, but the submission must include a phased rollout plan with site locations, capacity, funding triggers, and deployment timelines
Ambitious timelines may be considered if supported by EPC/OEM agreements or procurement schedules. Unsupported timelines are flagged.
Land, Permits & Regulatory Approvals
Irrevocable land titles or long-term leases
Permit/licence status and timelines must be disclosed. Full validation occurs during due diligence
Technical Capacity & Equipment
Yes. EPC/OEM must be named with track record and warranties. Submissions with “TBD” are incomplete
Asset life should broadly align with financing tenor. Detailed validation occurs during DD
ESG & Impact
With quantifiable indicators such as GHG reductions, jobs created, and gender inclusion metrics. Vague statements are insufficient
Yes, required for projects with storage or EVs