The renewable energy initiatives in Nigeria have been getting a boost from recent collaborations aimed at solving the challenge of lack of finances and improving access to renewable energy in the country.
Through collaboration with the National Off-Grid Market Acceleration Programme and the SNV Netherlands Development Organisation, United Capital Plc has ramped up its efforts of raising finances for the renewable energy sector.
The recent strategic investment dialogue brought together investors, development finance institutions, and renewable energy stakeholders in an effort to identify and address some challenges associated with the growth of off-grid energy initiatives in Nigeria.
One of the key topics discussed at the meeting is the Renewable Energy Blended Finance facility aimed at raising funds for the renewable energy sector.
According to Dr. Gbadebo Adenrele, who serves as the Managing Director of Investment Banking at United Capital, this facility will help in increasing access to financing for small and medium-sized businesses and smallholder farmers. The facility will utilize financing mechanisms like term loans and working capital to promote renewable energy projects.
As per Adenrele, the project is designed to encourage private sector engagement by adopting a risk-minimising approach of financing through catalytic funding schemes.
The REBF will allocate funds in a direct lending and on-lending scheme to support renewable energy producers, mini-grid projects, and companies in agriculture, cold chain management, solar cooling, and light manufacturing.
Uchenna Mkparu, Infrastructure Fund Manager at United Capital, stressed the need for creative financing as a means of bridging the energy gap in Nigeria. “The partnership will serve as a platform for raising finance and reinforcing the renewable energy supply chain,” he added.
Other stakeholders underscored the significance of the Nigeria Solar Marketplace for promoting investor connections, increasing market awareness, and developing business prospects
