Nigeria is among 14 African countries set to benefit from a new $11.3 million renewable energy initiative backed by the African Development Bank (AfDB) and its partners, aimed at expanding electricity access in fragile and underserved communities.
The funding follows the approval of a $5.65 million reimbursable grant by the AfDB’s Board of Directors through the Sustainable Energy Fund for Africa (SEFA), alongside a matching contribution from the Nordic Development Fund (NDF).
The initiative will pilot the Peace Renewable Energy Certificate (P-REC) Aggregation Facility, an innovative financing model designed to unlock investment in small-scale renewable energy projects, particularly mini-grids, across energy-poor regions.
Managed by Camco Clean Energy in partnership with Energy Peace Partners, the facility will provide upfront funding to developers in exchange for renewable energy certificates generated by their projects. These certificates will then be sold to global corporations seeking to meet sustainability commitments while supporting high-impact energy access initiatives.
Nigeria joins countries such as Burundi, Chad, the Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Sierra Leone, Somalia, South Sudan, Sudan and Uganda as beneficiaries of the programme.
The facility is expected to support the development of mini-grid projects across these countries through long-term purchase agreements with qualified developers. The approach is particularly targeted at conflict-affected and low-income communities, where access to conventional financing remains limited.
By leveraging private sector participation and corporate climate financing, the initiative aims to provide upfront capital that will accelerate project delivery and expand energy access.
Projections indicate that about 856,000 people will gain first-time access to electricity through the programme, with approximately 240,000 new connections and an additional 71 megawatts of renewable energy capacity expected to be delivered. Women are projected to account for nearly half of the beneficiaries.
The project aligns with broader continental efforts to expand electricity access, including “Mission 300,” a joint initiative of the AfDB and the World Bank targeting electricity access for 300 million Africans by 2030.
Speaking on the initiative, João Duarte Cunha of the AfDB said the programme represents a critical step in addressing financing gaps in rural electrification, particularly in fragile and conflict-affected regions. He noted that the facility introduces an innovative climate finance mechanism capable of attracting new sources of private capital into the sector.
Similarly, Satu Santala, Managing Director of the Nordic Development Fund, emphasised the importance of deploying clean and reliable energy solutions in vulnerable regions, noting that the initiative reflects growing global collaboration in advancing sustainable energy access.
Other stakeholders, including Camco and Energy Peace Partners, highlighted the potential of the facility to deliver low-cost, non-dilutive capital to renewable energy developers, while also converting corporate climate commitments into tangible infrastructure investments.
Analysts say the initiative could play a significant role in bridging Africa’s energy access gap, particularly in hard-to-reach areas, while also strengthening the role of innovative financing in driving sustainable development.