The Sustainable Use of Natural Resources and Energy Finance (SUNREF) has launched 81 million dollars technical assistance facility for the development of green energy projects in Nigeria, an official said on Wednesday.
SUNREF is a green financing line for businesses developed by the French Development Agency (AFD) and instituted with a €70 million grant funded by the AFD and the European Union Infrastructure Trust Fund (EU-ITF).
By supporting private investments, SUNREF Nigeria aims to reduce energy consumption, ensure the development of a low-carbon economy and allow economic actors to adapt to this transformation and also support financial actors to promote the development of innovative renewable energy and energy-efficient industries.
The productive sector will also benefit from these new investments thanks to reduced energy bills and better-secured energy supply.
Miss Ogechi Adiukwu, SUNREF Nigeria Programme Officer, who disclosed this in Abuja, said the project had an investment grant for renewable energy and energy efficiency projects.
“It seeks to ensure energy-efficient initiatives that will improve lives, increase economic opportunities, and support various sectors such as industry and agriculture.
“Through this grant, the SUNREF Nigeria programme will provide technical assistance and support to the Manufacturers Association of Nigeria (MAN),” 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.
Related Article: 5 Digital Lending Platforms For Small Businesses
“As a result, increasing the development of green energy is a key condition to sustainable economic growth by ensuring reliable access to energy as well as enabling businesses and households to seize opportunities of the ecological transition.”
She noted that Dr. Mansur Ahmed, President of MAN, had 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.
Adiukwu also disclosed that the SUNREF initiative had been deployed in over 30 countries and successfully supported over 42 projects in partnership with about 70 banks.
According to her, the benefit is that the SUNREF programme targets entrepreneurs AFD cannot finance directly such as Small Medium Enterprises (SMEs) and individuals, using financial intermediaries as channels for disseminating projects through reliable local counterparts with technical skills.
Mr. Faruk Yabo, Director of Renewable Energy and Rural Access, Federal Ministry of Power, said that the SUNREF programme would help Nigeria toward achieving its 30:30:30 goal of generating 30 per cent of 30 Giga Watts (GW) from renewable energy by 2030.
For Dr. Gregory Jobome, Chief Risk Officer, Access Bank, the bank had been on this journey of financing green energy projects for a long time.
“We hope that through this programme shall be a stimulus for other banks to start financing such projects that will benefit many generations to come,” he said.
Mrs. Ayodele Adeniyi of UBA said they believed renewable energy would go a long way to reducing the power deficit in Nigeria and that the bank was willing to go all the way to support it.