Joint initiative to bolster Nigeria renewable energy market

The partnership was formed to increase the proportion of renewable energy in Nigeria’s energy mix. (Image source: Union Bank)

The Union Bank of Nigeria has formalised the basis for a strategic partnership with the Universal Green Energy Access Programme (UGEAP), a 15-year blended finance facility, to catalyse the development of renewable energy in the West African country

The two entities have marked this with the signing of a memorandum of understanding to drive sustainable energy access across sub-Saharan Africa, with a particular focus in Nigeria. Together, they have identified key focus areas of meeting energy demands in Nigeria, reducing the dependence on expensive electrical energy of industry, promoting solar home solutions, encouraging mini-grids, and developing off-grid and on-grid renewable energy production for corporates. 

The partners aim to mobilise US$500mn in funding and technical assistance to achieve these aims and advanced the renewable energy sector in the country and sub-Saharan Africa. 

Mudassir Amray, managing director and CEO, Union Bank, remarked, “Union Bank of Nigeria is proud to align with UGEAP in this ground-breaking initiative. Our longstanding commitment to fostering growth in Nigeria and UGEAP’s expertise in renewable energy positions us to drive meaningful change. This collaboration marks a milestone in pursuing renewable energy development in Nigeria, promising a more sustainable and resilient future for our communities.”

The United Nations Green Climate Fund (GCF) has committed to anchoring investment into UGEAP and DWS Investment is the investment manager. 

“Renewable energy technology is a highly flexible solution for local solutions to the global target to de-carbonise industry and the financial system,” commented Michael Hoelter, senior investment principal of the sustainable investments team at DWS. “Be it pay-as-you-go or roof-top installations for corporates, customers do not have to wait for the national grid to be reinforced to obtain electrical energy reliably. Solar power beats the noise of generators and can also beat the cost. UGEAP aims to multiply its capital contribution with the strength of local partners with a strategic alignment to bring clean energy to households and industrial users. We are glad to welcome Union Bank to the already existing partners in this joint development path.