Nigerian fintech company Nomba and asset financing firm Synafare have announced a ₦2 billion ($1.4 million) financing commitment aimed at helping small and medium-sized enterprises (SMEs) acquire solar energy systems and reduce their dependence on unreliable grid electricity.
The initiative is expected to support approximately 300 Nigerian businesses over the next 24 months, providing financing for the purchase and installation of solar equipment. The partnership is designed to address two major challenges confronting businesses across the country — persistent electricity supply problems and limited access to formal credit.
Nigeria’s unstable power supply continues to place a significant financial burden on businesses, particularly SMEs that rely heavily on petrol and diesel generators to maintain operations. At the same time, access to affordable financing remains a major challenge, with more than 80 per cent of the country’s estimated 40 million micro, small and medium-sized enterprises lacking access to formal financing, despite the sector’s substantial contribution to the national economy.
The combination of high energy costs and inadequate access to credit has constrained the ability of many businesses to expand, invest in new equipment and improve productivity. For many enterprises, the cost of purchasing fuel and maintaining generators represents a significant portion of their operating expenses.
The new partnership seeks to tackle these challenges by combining Synafare’s experience in renewable energy financing with Nomba’s digital lending and financial technology infrastructure. Under the arrangement, Synafare will identify businesses that could benefit from solar power and conduct an initial assessment to determine their suitability for the financing programme.
Businesses that pass Synafare’s preliminary screening will then undergo an independent credit evaluation by Nomba. Applicants will be required to provide the necessary documentation before Nomba conducts its assessment and determines whether they qualify for financing.
Once approved, Nomba will release the funds directly to the participating businesses, while Synafare will oversee the repayment process. The structure is intended to simplify access to financing while ensuring that the funds are directed towards the acquisition of solar energy systems.
The financing package will provide loans averaging approximately ₦50 million per business, with eligible companies able to access as much as ₦100 million, depending on their energy requirements and financing needs. The funds can be used to acquire key solar components, including solar panels, inverters and battery storage systems.
According to the partners, the investment is expected to help participating businesses improve their operating efficiency by providing a more dependable source of electricity. With access to solar power, companies can potentially extend their operating hours while reducing interruptions caused by grid outages.
The transition away from generators could also significantly lower energy-related expenditure. Businesses that reduce their reliance on petrol or diesel generation would have the opportunity to redirect savings from fuel and generator maintenance towards other areas, including inventory, staffing, technology and business expansion.
The ₦2 billion commitment builds on an earlier pilot programme between the two companies that has operated for more than a year. During the pilot phase, the partners reportedly provided more than ₦500 million in financing to 10 SMEs, with the programme recording a zero-default rate.
The performance of the pilot has provided the foundation for the companies’ decision to significantly increase the scale of the initiative. The partners say the results demonstrate the potential of their combined approach to assessing businesses, managing risk and financing renewable energy investments.
Nomba Chief Executive Officer Yinka Adewale said the expanded commitment reflects the company’s confidence in the ability of Nigerian SMEs to grow when provided with appropriate financial and infrastructure support. He also pointed to the lending model developed through the partnership as an important factor behind the decision to scale up the programme.
The initiative comes at a time when Nigerian businesses are increasingly exploring alternative energy sources to reduce exposure to the country’s unreliable electricity grid and rising energy costs. Solar power, supported by battery storage, is becoming an increasingly attractive option for enterprises seeking greater control over their electricity supply.
By combining access to renewable energy with structured financing, Nomba and Synafare aim to make solar adoption more accessible to businesses that may otherwise struggle to finance the upfront cost of installing such systems.
The partners expect the programme to contribute to improved productivity, lower operating costs and greater business resilience for hundreds of SMEs over the next two years. Beyond providing access to clean energy, the initiative could also demonstrate how targeted private-sector financing can help address infrastructure and credit constraints affecting businesses across Nigeria.
The ₦2 billion commitment therefore represents a broader effort to strengthen the country’s SME ecosystem by tackling two interconnected barriers to growth — unreliable electricity and inadequate access to affordable finance — while encouraging greater adoption of renewable energy among Nigerian businesses.
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