Nigeria is set to benefit significantly from a new $11.3 million renewable energy financing facility approved by the African Development Bank (AfDB), aimed at accelerating electricity access and improving power supply in the country’s underserved and fragile communities.
The facility, designed to support Peace Renewable Energy Certificate (P-REC) mini-grid projects, will provide clean, reliable electricity to an estimated 856,000 people across 14 African nations, with Nigeria expected to receive substantial support to address its chronic energy deficit. The fund comprises a $5.65 million grant from the AfDB, matched equally by the Nordic Development Fund.
Jointly managed by Camco Clean Energy and Energy Peace Partners, the initiative introduces an innovative financing model that allows mini-grid developers to receive upfront capital in exchange for future P-REC rights.
These certificates, generated from small-scale renewable energy projects, are sold to multinational corporations seeking measurable social and environmental impact.
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The programme targets frontier markets including Nigeria, where unreliable power supply continues to hinder economic growth, industrial productivity, and daily life, especially in rural and off-grid areas. By offering non-dilutive, low-cost capital, the facility is expected to fast-track mini-grid deployment, helping Nigeria advance its national electrification goals and reduce dependence on diesel generators.
Analysts believe the intervention could play a crucial role in bridging Nigeria’s huge financing gap for off-grid solutions, attracting private investment into high-risk regions and supporting broader economic development.
João Duarte Cunha, Manager of the Renewable Energy Funds Division at the AfDB, said the P-REC Aggregation Facility represents a market-driven approach to overcoming structural barriers in energy access.
The initiative aligns with efforts to expand sustainable electricity in conflict-affected and financially constrained environments across the continent.
