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🇳🇬 Nigeria /Energy & Infrastructure

Firms Commit N2bn to Finance Solar Power for 300 Nigerian SMEs

From ThisDay · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement New plan
  • Nomba and Synafare announced a N2 billion commitment to expand solar-energy financing for small and medium-sized businesses across Nigeria.
  • The initiative builds on more than a year of collaboration in which Nomba provided direct financing for renewable-energy equipment.
  • The companies said the funding aims to address the high upfront cost that often prevents businesses from adopting solar power.

Nomba and Synafare are committing N2 billion to help more Nigerian small businesses obtain solar equipment, targeting the upfront cost that often keeps renewable energy out of reach.

At Nomba, we’ve built our credit business on a simple principle: lend responsibly, and lend directly, so the value reaches the merchant without unnecessary friction.

— Yinka AdewaleNomba’s chief executive described the company’s direct-lending approach.

The financial services company and renewable-energy financing fintech said the commitment expands a partnership that has operated for more than a year. Under the collaboration, Nomba has provided direct financing to small and medium-sized enterprises seeking to buy solar equipment.

Our partnership with Synafare has shown what that looks like in one of Nigeria’s most important sectors, solar energy access. Committing N2 billion to scale this model is a statement of confidence in Nigerian SMEs and in what we’ve built together with Synafare.

— Yinka AdewaleAdewale explained the significance of the new financing commitment.

Nomba Chief Executive Officer Yinka Adewale described the arrangement as an example of the company’s approach to responsible lending. “At Nomba, we’ve built our credit business on a simple principle: lend responsibly, and lend directly, so the value reaches the merchant without unnecessary friction,” he said.

Every business we work with wants solar power equipment to run and grow their operations, but the upfront cost of solar products is often out of reach.

— Tobi EshoSynafare’s chief executive identified the cost barrier facing businesses.

Adewale said the larger commitment reflected confidence in Nigerian SMEs and the companies’ joint model for expanding solar access. Synafare CEO Tobi Esho said businesses want solar equipment to run and grow, but many cannot afford the initial purchase cost. “What Nomba’s direct financing has done, through the businesses we originate and vet, is close that gap,” Esho said. “This N2 billion commitment lets us bring that same impact to a much larger group of Nigerian SMEs.”

What Nomba’s direct financing has done, through the businesses we originate and vet, is close that gap. This N2 billion commitment lets us bring that same impact to a much larger group of Nigerian SMEs.

— Tobi EshoEsho said the commitment would expand access to the partnership’s financing model.
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Originally published by ThisDay. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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