African Development Bank (ADB), Sustainable Energy Fund for Africa(SEFA), has approved a $500,000 grant to support the development and launch of the Nigeria Energy Access Fund (NEAF).
This new private equity fund is developed by All On, a Nigerian impact investment firm financed by Shell.
According to a release signed by the ADB spokesperson, Emeka Anuforo, NEAF will make strategic investments in sustainable energy in Nigeria, particularly in the country’s growing off-grid and mini-grid sectors.
The SEFA grant will support specific workstreams to set NEAF in motion and enhance its engagement with private and public sector investors.
The release also said 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.
“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 mobilization of much-needed private sector investment for the sector” the bank’s Acting Vice President for Power, Energy, Climate Change and Green Growth, Wale Shonibare”.