To support the development and launch of a new private equity fund the Nigeria Energy Access Fund (NEAF) the Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank (AfDB), has approved a $500,000 grant developed by All On, a Nigerian impact investment firm financed by Shell.
A statement by the Communication and External Relations Department AfDB, Mr. Emeka Johnkingsley Anuforo, said “NEAF would make strategic investments in sustainable energy in Nigeria, particularly in the country’s burgeoning off-grid and mini-grid sectors.”
The SEFA grant would support specific work streams to set NEAF in motion and enhance its engagement with private and public sector investors. NEAF would be a first-of-its-kind facility to provide eligible projects and businesses with equity solutions that are currently unavailable in the market.
“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 bank’s Acting Vice President for Power, Energy, Climate Change and Green Growth, Wale Shonibare said: “The SEFA grant will be instrumental in the constitution of NEAF, and ultimately, the mobilisation of much-needed private sector investment for the sector.”
Once operational, NEAF is expected to complement the Bank’s wide range of sustainable energy initiatives currently being implemented in Nigeria.
In November 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.