According to the Rural Electrification Agency of Nigeria (REA), the annual investment potential of the Nigerian off-grid market is estimated at over USD 9.2 billion. Undoubtedly, this is the largest off-grid market in Africa. Given the prevalent opportunities cum challenges currently rocking the Nigerian energy sector, access to finance - either import and debt financing, or impact capital in the form of convertible loans and / or equity - remains a crucial factor for enhancing energy access across the country.

At the 16th edition of the Seminar series on Renewable Energy Potentials in Nigeria tagged Renewable Energy Financing which held on Wednesday 17th October 2018 at the Westwood Hotel, Ikoyi, Lagos, and in Abuja on Friday 19th October 2018 at the German Embassy Abuja, it was accentuated that the priority area of the new deal on energy is to light up and power Africa with various multinationals like African Development Bank, the German Desk (a joint venture between Access Bank and DEG – a German Development Finance Institution) and the World Bank aiming to make this quest a reality via a transformative partnership on Energy for Africa.

Duke Benjamin, Deputy Delegate of the Delegation of German Industry and Commerce (AHK Nigeria) who introduced the seminar series echoed the urgent need for both capital and technical interventions to salvage the nation’s energy crisis which has heavily impacted on almost every sector of the largest economy in Africa. While the Deputy Head of Mission of the German Embassy Abuja, Regine Hess appealed for a closer collaboration between all stakeholders in the sector to improve access to sustainable and climate-friendly energy for all in Nigeria during her Welcome Address.

Financed by the Foreign Energy Policy Fund of the German Ministry of Foreign Affairs, the objective of this edition of the seminar series therefore was to explore available financial solutions and investments opportunities (local and foreign) that are open to project developers within the Nigerian renewable energy market and measures on how developers could gain access to them.

Facilitated by the Consulate General of the Federal Republic of Germany in Lagos and the German Embassy Abuja, the seminars were implemented by the Energy and Environment Desk of the Delegation of German Industry and Commerce (AHK Nigeria).

The Executive Director of Rural Electrification Fund (REF), Dr. Sanusi Ohiare who delivered a lecture on “Off-grid Investment and Funding Opportunities in Nigeria” pleaded that industry players should take advantage of the Energizing Economies Initiative (EEI) - an initiative of the Federal Government of Nigeria being implemented by the Rural Electrification Agency. EEI has a mandate to support rapid deployment of off-grid electricity solutions that will provide clean and consistent power to economic clusters in Nigeria.

Sebastian Barroso da Fonseca, Head of German Desk, Commercial Banking Division spoke about financial solutions that the German Desk has to offer German SMEs and their local partners in Nigeria. “German Desk enables Nigerian and German firms to gain access to financial supports via its one-stop shop that combines all the products and services offered by Access Bank with the network and support of AHK Nigeria and DEG”, Sebastian noted during his presentation.

“By mobilizing domestic and international capital for innovative financing in Africa’s energy sector, African Development Bank (AfDB) has developed a 10-year strategy (2013-2022) to achieve inclusive growth and a transition to green growth across the continent”, said Dozie Okpalaobieri, an Energy Sector Policy and Regulations Specialist for the AfDB. While speaking on “Off-grid Renewable Energy Financing”, he noted that the AfDB offers various financial products that Nigerian and German developers could leverage for expansion among which include a $100-million blended finance debt fund that is designed to provide loans in local and foreign currencies to off-grid energy companies.

The sessions were moderated by Mr. Ikenna Mbaekwe, Investment Manager, KfW-DEG Nigeria.

Event Presentations

Guidelines: DEG_develoPPP and Up-Scaling funding programs

Click to Download: Development cooperation with the private sector

Click to Download: Up-Scaling Program