The Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank (AfDB) has approved $500,000 grant to support the development and launch of the Nigeria Energy Access Fund (NEAF).
NEAF is a new private equity fund developed by All On, a Nigerian impact investment firm financed by Shell.
AfDB said NEAF will make strategic investments in sustainable energy in Nigeria, particularly in the country’s burgeoning off-grid and mini-grid sectors.
According to AfDB, the SEFA grant will support specific workstreams to set NEAF in motion and enhance its engagement with private and public sector investors.
It added that 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 bank’s Acting Vice President for Power, Energy, Climate Change and Green Growth, Wale Shonibare, said
“Nigeria requires bespoke and innovative market-based solutions to provide its off-grid population, estimated at 100 million, access to sustainable sources of energy.
“The SEFA grant will be instrumental in the constitution of NEAF, and ultimately, the mobilisation of much-needed private sector investment for the sector”.