The African Development Bank says it has approved a $500,000 grant to support the development of clean energy in Nigeria.
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The grant was approved under the AfDB’s Sustainable Energy Fund for Africa, according to a statement issued by the bank on Friday.
The AfDB’s Sustainable Energy Fund for Africa is a multi-donor facility established to generate private sector investments in clean energy projects in Africa.
AfDB Acting Vice-President for Power, Energy, Climate Change and Green Growth, Wale Shonibare, in the statement said the grant would also support the inauguration of the Nigeria Energy Access Fund.
The Nigeria Energy Access Fund is a private equity fund developed by ‘All On’, an impact investment firm financed by Shell.
The Fund will make strategic investments in sustainable energy in Nigeria, particularly in the off-grid and mini-grid sectors, according to Shonibare.
He added that NEAF would provide eligible projects and businesses with equity solutions that were currently unavailable in the market.
Shonibare 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 mobilisation of much-needed private sector investment for clean energy.
“The grant will support specific work streams to set NEAF in motion and enhance its engagement with private and public sector investors.”
Once operational, NEAF is expected to complement AfDB’s ongoing sustainable energy initiatives in Nigeria.
Shonibare further disclosed that SEFA’s support to NEAF was aligned with the New Deal on Energy for Africa.
The project is expected to boost the Federal Government’s power sector recovery plans, in line with AfDB’s Energy Sector Strategy.
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