The African Development Bank has allocated $500,000 to Nigeria. The subsidy will be used to finance the creation of an off-grid green energy investment fund called the Nigeria Energy Access Fund (NEAF).
The financing of off-grid energy in Nigeria will take off-grid finance to a new level. The country recently received a grant from the African Development Bank (AfDB) to support the creation of the Nigeria Energy Access Fund (NEAF). The grant is provided through the Sustainable Energy Fund for Africa ( SEFA). The decision was taken by the bank’s management on September 20, 2019.
For the AfDB’s Acting Vice President in charge of Electricity, Energy, Climate Change and Green Growth, Wale Shonibare, “Nigeria needs innovative and tailor-made technologies to provide energy to its citizens in need, through off-grid solutions. This SEFA grant will help to set up the NEAF and, in the long term, to mobilise the necessary funding for this sector”. The NEAF grant will be used to support the development of the NEAF and, in the long term, to mobilise the necessary funding for this sector. NEAF is a private equity fund that was developed by All On, a Nigerian investment company financed by Shell. In its viewpoint, the NEAF plans to make several investments in Nigeria’s green energy sector, including off-grid solar energy and mini grids.
SEFA, an AfDB mechanism for electricity in Africa
The SEFA is a financial mechanism set up by the AfDB to unlock private investment to finance clean energy projects in Africa. It is made up of contributions from Denmark, the United States and the United Kingdom. The SEFA is managed by the AfDB’s Department of Energy, Climate and Green Growth. In 2018, SEFA provided a grant of $1.5 million to support the first phase of the Jigawa 1-GW Independent Power producer solar procurement programme, implemented by the Nigerian government. In the same year, the AfDB provided $200 million to support the Nigeria Electrification Project (NEP), which aims to develop mini-grid solutions in the country.