BoI, All On, Sign One Billon Naira Off Grid Energy Fund

All On and the Bank of Industry (BoI) have signed a 1 billion naira partnership agreement to finance the Niger Delta Off Grid Energy Fund

All On, is an independent impact investing company, seeded with funding from Shell, and works with partners to increase access to commercial energy products and services for under-served and un-served off-grid energy markets in Nigeria, with a special focus on the Niger Delta.

All On invests in off-grid energy solutions spanning solar, wind, hydro, biomass and gas technologies deployed by both foreign and local access-to-energy companies that complement available grid power across Nigeria and help bridge the significant energy gap.

This new funding agreement will go a long way to improve access to clean, affordable and reliable power solutions. The purpose of the fund is to encourage the growth and quick spread of off-grid energy solutions, in the oil producing areas to enable SMEs and communities have access to clean and reliable power solutions.

Speaking at the signing ceremony, Dr. Wiebe Boer, the CEO of All On, “We are excited to partner with the Bank of Industry on the Niger Delta Off-Grid Energy Fund because of their reputation as Nigeria’s leading Development Finance Institutions and their deep experience as one of the earliest investors in the Nigerian off grid energy sector.”

According to Mr. Olukayode Pitan, MD, BOI, the foremost Development Finance Institution in Nigeria, “the fund would provide local currency debt financing to facilitate the deployment of energy solutions by access-to-energy companies in the Niger Delta at 10 per cent interest rate per annum, with a one-year moratorium, and seven years tenor.”

“Bank of Industry keeps seeking and exploring strategic partnerships with reputable institutions like All On in developing sustainable solutions to facilitate social and industrial development. Power is a critical resource towards achieving industrialization, and is also a major cost driver for SMEs in Nigeria. We are therefore particularly pleased with this partnership as the deployment of this fund will provide clean energy at affordable interest rate and friendly conditions not only to SMEs, but also to households and communities in the Niger Delta region of the country.”

Despite the enormous energy reserves of the Niger Delta, government and private enterprise meet less than 10 per cent of the energy needs of the region. The high cost of running generators and lack of sustainable alternatives is a significant obstacle to economic diversification of the Niger Delta.

This energy poverty reinforces unemployment, limits social mobility and fuels militancy. For the people of the Niger Delta this is particularly grating as vast amounts of oil and gas are taken daily from beneath their feet and gas flares burn billions of dollars worth of useful gas over their heads that could easily provide electricity.

“This partnership will go a long way to encourage off grid energy companies to deploy in the Niger Delta and address the massive access to energy gap in the region.”

 

 

About Olumide Durotoluwa 71 Articles
Olumide writes regularly on Greenergie, with interests in clean tech, business modelling, and analytics. Contact him directly via olumide@greenergie.com.ng

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