African Development Bank (AFDB) is offering Nigerian clean power developers access to naira-denominated credit for up to 15 years. This, the bank said, is to address one of the key funding challenges for renewables across Africa.
The European Bank for Reconstruction and Development has told the second Solar Power in Africa webinar that few commercial lenders in Africa are prepared to offer the 25-year credit arrangements required by clean power developers.
The event was organized by analyst REGlobal. Director for energy financial solutions, policy, and regulation at the AFDB, Wale Shonibare, said the development financier has introduced the Nigerian infrastructure network to offer finance in local currency.
The product helps attract different types of investor, depending upon the form of the local solar value chain, Shonibare said last week.
Anita Otubu, head of the program management unit for government initiative the Nigeria Electrification Project, gave details of a drive by Abuja to provide off-grid renewable electricity, backed by a $350 million loan from the World Bank and $200 million in credit from the AFDB.
He said the government wants to provide clean power to 705,000 households, 90,000 micro-to-medium sized businesses, 400 health centers, 100 Covid-19 treatment and isolation centers, 15 federal colleges, and two teaching hospitals.
The off-grid program also aims to provide 24,500 appliances to meet mini-grid load demand. The initiative would provide an NGN140 billion ($336 million) credit facility to fund 5 million new solar connections to help 25 million people.
The online webinar was supported by New Delhi-based electricity trade website Global Transmission Report and compatriot publication Renewable Watch, and sponsored by Chinese manufacturer Trina Solar.
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