The investments include a €30 million from the Electrification Financing Initiative (ElectriFI) and a €165 million direct loan from the European Union.
The announcement was made during the inauguration of a solar tree at the headquarters of the European Union delegation in Abuja.
The EU Ambassador to Nigeria, Ketil Karlsen, said the European Union has set aside €165 million, complemented by other financing opportunities for Nigerian companies to promote better use of renewable energy in Africa’s most populous nation, where a very large number of people do not have access to affordable energy options.
The funds that will help promote people’s access to electricity should be used to support companies that invest in off-grid in Nigeria, particularly in solar energy. In the home solar kits sector, many women are offering their autonomous solar systems in rural areas.
According to Quentin Antoine, Senior Investment Manager at ElectriFI, the financial institution’s role is to target projects that provide access to electricity in rural areas.
Recently, ElectriFI partnered with Renewable Energy Performance Platform (REPP) to open a $10 million line of credit for PAS Solar, to boost the distribution of its solar kits to villages in Nigeria.
In urban areas, ElectriFI will support companies that offer mini-grids to local businesses.