The Bank of Industry and All On, a Nigerian off-grid energy investment company backed by Shell, have announced the establishment of a N1bn Niger Delta Off-Grid Energy Fund.
They said the fund would provide local currency debt financing to facilitate the deployment of energy solutions by access-to-energy companies in the Niger Delta at 10 per cent interest rate per annum (with a one-year moratorium) and tenor of up to seven years.
The objective of the fund, according to a report, is to stimulate the growth and geographic spread of off-grid energy businesses in the Niger Delta to enable households, Small and Medium Enterprises and communities have access to clean, affordable and reliable power solutions.
Speaking at the signing ceremony for the agreement, the Managing Director, BOI, Mr Olukayode Pitan, said, “The Bank of Industry keeps seeking and exploring strategic partnerships with reputable institutions like All On in developing sustainable solutions to facilitate social and industrial development.”
He described electricity as a critical resource towards achieving industrialisation and a major cost driver for SMEs in the country.
“We are, therefore, particularly pleased with this partnership as the deployment of this fund will provide clean energy at an affordable interest rate and friendly conditions not only to SMEs but also to households and communities in the Niger Delta region of the country,” he added.
The N1bn fund would be provided equally by the two institutions but would be operated by BOI, according to the report.
The Chief Executive Officer, All On, Dr Wiebe Boer, quoted, “We are excited to partner with the Bank of Industry on the Niger Delta Off-Grid Energy Fund because of its reputation as Nigeria’s leading development finance institution and its deep experience as one of the earliest investors in the Nigerian off-grid energy sector.
“This partnership will go a long way to encourage off-grid energy companies to deploy in the Niger Delta and address the massive access to energy gap in the region.”