June 21, 2024

UK-Nigeria CFA calls for proposals from renewable energy developers seeking $1m, above

Oredola Adeola

The United Kingdom (UK) Government-funded Climate Finance Accelerator (CFA) Nigeria has opened a call for proposals from all renewable energy developers seeking finance of at least USD$1 million with no upper limit, to tackle the climate crisis and develop projects in support of the Energy Transition Plan.

EnergyDay gathered that the CFA Nigeria programme is a climate finance country platform designed to directly respond to the urgency and scale of the climate crisis in Nigeria, by mobilising finance for the country’s just transition to a resilient, low-carbon economy.

It is a climate finance country platform designed to directly respond to the urgency and scale of the climate crisis in Nigeria, by mobilising finance for the country’s just transition to a resilient, low-carbon economy.

The projects are expected to be selected from the country’s priority sectors according to Nigeria’s Nationally Determined Contribution: renewable power, transport, energy efficiency, residential, oil and gas, agriculture, forestry and land use, waste and the circular economy, water, and industrial processes.

Successful projects will receive one-to-one advice and support from technical, financial and gender equality and social inclusion experts to help them move closer to investment. The support will culminate in an event in June 2023 to bring project developers together with potential investors.

According to the statement by CFA Nigeria, the project developers in Nigeria helping to tackle the climate crisis are invited to apply by completing the online application on or before 17 February 2023.

CFA Nigeria stated that interested project developers must be in pre-feasibility stage and should be seeking investment of at least USD$1 million with no upper limit.

Ben Jones, British Deputy High Commissioner in Lagos, in his comment on the project expressed delight that the Climate Finance Accelerator Nigeria is now open for applications from low-carbon projects.

He said, “The private sector has the potential to play a large part in helping to meet Nigeria’s climate change commitments and I’m excited to see what innovative projects apply.

“The CFA has already seen great success globally and in Nigeria and it is fantastic that Nigerian projects will continue to receive bespoke support from technical and financial experts to help increase their chances of securing investment.

“The CFA builds on the UK’s climate leadership, as host of COP26 in Glasgow and is part of the UK’s commitment to supporting Nigeria’s transition to a prosperous low carbon future,” British Deputy High Commissioner.

Dr. Uzo Egbuche, Team Leader of CFA Nigeria on his part said that his organisation is recognised as a country platform capable of deploying blended finance and leveraging private finance at scale.

He said, “We are proud to have established ourselves as an independent legal entity in 2022 able to serve our core clients of financiers, developers and of course the Federal Government

“We invite all developers in the climate economy seeking finance to join the pipeline as we begin this next chapter in 2023.”

EnergyDay further gathered that the programme is one of the available private finances required for the implementation of Nigeria’s ambitious climate commitments articulated through Energy Transition Plan and Nationally Determined Contribution.

CFA Nigeria is a build-out of the pilot CFA launched in 2017 and was successfully established as an independent legal platform in 2022.

The initiative presents substantial value to project developers, financial institutions, and the Nigerian Government, presenting common ground for project developers and financial institutions to deploy blended finance, de-risk, and fund low-carbon, resilient opportunities.

The CFA funded programme acts to improve the bankability of projects and public-private partnerships and to connect projects with financial institutions. It also identifies policy, regulatory and fiscal interventions to enable greater flows of finance and builds understanding and awareness of the climate finance supply chain between finance, business, and government.

In 2021-22 CFA Nigeria amassed a pipeline worth USD445 million and worked directly with innovative projects to engage Nigerian and global financiers.

In 2023, CFA Nigeria intends to expand its pipeline with two further calls for proposals. It engages extensively with Nigerian financial institutions and members of the Glasgow Finance Alliance for Net Zero Citibank and Standard Chartered to identify avenues by which finance can be made available to viable proponents.