By Maxwell Awumah, GNA
Ho, Sept. 23,
GNA - The Sustainable Energy Fund for Africa (SEFA), managed by the African
Development Bank, has approved a $500,000 grant to support the development and
launch of the Nigeria Energy Access Fund (NEAF), a new private equity fund
developed by All On, a Nigerian impact investment firm financed by Shell.
its release, NEAF will make strategic investments in sustainable energy in
Nigeria, particularly in the country’s burgeoning off-grid and mini-grid
The SEFA grant
will support specific workstreams to set NEAF in motion and enhance its
engagement with private and public sector investors.
NEAF will be a
first-of-its-kind facility to provide eligible projects and businesses with
equity solutions that are currently unavailable in the market.
Shonibare, the Bank’s Acting Vice President for Power, Energy, Climate Change
and Green Growth, said “Nigeria requires bespoke and innovative market-based
solutions to provide its off-grid population, estimated at 100 million, access
to sustainable sources of energy. The SEFA grant will be instrumental in the
constitution of NEAF, and ultimately, the mobilization of much-needed private sector
investment for the sector”.
said once operational, NEAF was expected to complement the Bank’s wide range of
sustainable energy initiatives currently being implemented in Nigeria.
2018, the Board of Directors of the Bank approved a $200 million package to
support the Nigeria Electrification Project (NEP), designed to help scale-up
green mini-grid solutions with subsidies, among other measures.
In May 2018,
SEFA approved a $1.5 million grant to support the first phase of the Nigerian
government’s Jigawa 1-GW Independent Power Producer Solar Procurement Program.
to NEAF is aligned with the New Deal on Energy for Africa and the Bank’s High 5
priorities, especially ‘Light Up and Power Africa’ and ‘Improve the Quality of
Lives of Africans.’ The project conforms with the Bank’s Energy Sector Strategy
and will boost the Nigerian government’s power sector recovery plans.