The Sustainable Use of Natural Resources and Energy Finance has launched $81m technical assistance for the development of green energy projects in Nigeria.
SUNREF Nigeria Programme Officer, Ms Ogechi Adiukwu, stated on Thursday that the project had an investment grant for renewable energy and energy efficiency projects.
According to Adiukwu, the programme comprises a $70m low-cost debt financing and $11m grant, which seeks to improve access to energy through improved access to affordable finance for renewable energy technologies.
By ensuring energy efficiency, Adiukwu said the initiatives were expected to improve lives, increase economic opportunities and support various sectors such as industry and agriculture.
“Through this grant, SUNREF Nigeria programme will provide technical assistance and support to the Manufacturers Association of Nigeria,” she said, adding that SUNREF was partnering Access Bank, United Bank for Africa and other corporate bodies in Nigeria to bring the project to life.
She said, “In Nigeria, where access to energy is far from universal, limited energy security and rising energy prices will likely continue to challenge the growth of Nigerian businesses in the near future.
“As a result, increasing the development of green energy is a key condition to a sustainable economic growth by ensuring reliable access to energy as well as enabling businesses and households to seize opportunities of the ecological transition.”
Adiukwu quoted the Senior Director, Environment and Energy at WINROCK International, Ms Inga-Elisabeth Hawley, as saying that they were delighted to be appointed to implement the technical component of the programme.
Adiukwu also quoted the Team Leader, SUNREF Nigeria Programme, Javier Betancour, as saying that the programme brought the global SUNREF experience to the most populous African country.
Also, she cited the President of MAN, Dr. Mansur Ahmed, who said the programme would be critical in increasing the competitiveness of Nigerian manufacturers, as they transit to renewable energy sources and implement energy efficiency measures in their operations.
She noted that the SUNREF initiative had been deployed in over 30 countries and successfully supported over 42 projects in partnership with about 70 banks to the tune of about €2.5bn from the French Development Agency of which €1.2bn euros had been paid.
The benefits are that SUNREF programme targets entrepreneurs AFD cannot finance directly such as Small Medium Enterprises and individuals, using financial intermediaries as channels for disseminating projects through reliable local counterparts with technical skills, she noted
Director of Renewable Energy and Rural Access, Federal Ministry of Power, Mr. Faruk Yabo, reportedly said the programme would help Nigeria towards achieving its 30:30:30 goal of generating 30 per cent of 30 gigawatts from renewable energy by 2030.
The Chief Risk Officer at Access Bank, Dr. Gregory Jobome, said the bank had been on the journey of financing green energy projects for a long time.
“We hope that this programme shall be a stimulus for other banks to start financing such projects that will benefit many generations to come,” he said.
SUNREF is a green financing line for businesses developed by the AFD and instituted with a €70m grant funded by the AFD and the European Union Infrastructure Trust Fund.
