The Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank AFDB, 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.
The Nigeria Energy Access Fund would make strategic investments in sustainable energy in Nigeria, particularly in the country’s growing 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 will be a first-of-its-kind facility to provide eligible projects and businesses with equity solutions that are currently unavailable in the market.
The acting Vice President, Power, Energy, Climate Change and Green Growth at the AfDB, Wale Shonibare said Nigeria requires innovative market-based solutions to provide its off-grid population, estimated at 100 million, access to sustainable sources of energy.
He said the SEFA grant would be instrumental in the constitution of Nigeria Energy Access Fund, and ultimately, the mobilization of much-needed private sector investment for the sector.
Once operational, Fund 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.
Also last year, SEFA approved a $1.5 million grant to support the first phase of the one gigawatt Independent Power Producer Solar Procurement Program in Jigawa state