Aimed at facilitating increased access to affordable, reliable and sustainable energy sources for low income households, SME’s, and communities are the first set of transactions that involves investing in Nigerian Off-Grid Energy Businesses by All On, an independent impact investing company.
“It is just the beginning of our investments towards improving access to energy in Nigeria for the tens of millions of off-grid households and SMEs across the country,” said Dr. Wiebe Boer, COE of All On.
“This initial set of transactions demonstrates our commitment to utilizing a market-based approach to making a sustainable impact in the off-grid energy sector in partnership with global and local market leaders,” Boer added.
Included in the initial investments is an equity investment in Lumos Global BV, the fastest growing distributed utility in West Africa, and a grant to renowned Nigerian tech ideation incubator, Co-Creation (CC) Hub, to launch a challenge to engage Nigeria’s technology innovation ecosystem in the access to energy space.
The Chief Executive Officer of CCHub, Bosun Tijani, said “The organization is proud to partner with All On to support Nigeria’s early stage clean energy entrepreneurs. Matching our expertise identifying and supporting innovative startups with All On’s seed capital, we hope we can unearth amazing enterprises to meet the energy needs and aspirations of Nigerians.”
While Speaking with the NerveAfrica, Boer noted that “There is a massive opportunity in Nigeria’s off grid market as the recent mini-grid and eligible customer regulations have provided an enabling regulatory environment for off grid energy to take off in the country”.
Fifty-five percent of the Nigerian population has no access to grid-connected electricity and access to electricity in rural areas is about thirty-five percent and about fifty-five percent in the urban areas.
Electricity in Nigeria is mostly on-grid power that is supplied by Distribution Companies (DISCOs) which has been constrained by unavailability of gas, inadequate transmission infrastructure, Liquidity issues in the Nigerian Electricity Supply Industry (NESI) and Nigerian Integrated Power Project (NIPP) Privatization.
With consideration to Nigeria’s plans of increasing power generation capacity in the coming years, and the low level of access to electricity in the rural areas; there is need for significant investments in off-grid generation that serves as a viable solution for increasing generation.
An award-winning indigenous mini grid operator in Nigeria, Green Village Enterprises (GVE), is to benefit from the All On transactions as negotiations for equity and debt investment is in the latter stages.
“We at GVE are excited about this relationship with All On; An investment from a world-class organisation such as All On further validates our position as one of the leading and most innovative indigenous clean energy solutions providers in Sub-Saharan Africa” said Ifeanyi Orajaka, Managing Director of GVE.
“We are very optimistic and look forward to achieving our medium-term target of impacting 2% of Nigeria’s 180 Million population through this partnership” Orajaka added.
All On has also entered into a grant agreement with Solar Nigeria, a UK Aid-funded project implemented by Adam Smith International, for the receipt of grant funding to further de-risk investments made by All On in the Solar Home System (SHS) space.