Nigeria has launched a new renewable energy financing platform expected to unlock up to $40 billion in public and private sector investments over the next 10 years as part of efforts to address the country’s electricity crisis and improve power access for millions of Nigerians.
The platform, known as the Green Finance and Investment Facility (GFIF), was officially unveiled in Lagos through a collaboration involving transaction advisory firm Barton Heyman Limited, the Rural Electrification Agency (REA), and UK-backed support under the UK PACT programme.
The initiative is designed to support the development of 20 gigawatts of renewable energy capacity across Nigeria, with projections showing that about 75 million Nigerians could benefit from improved electricity access if the plan is successfully implemented.
Stakeholders at the launch said the GFIF was created to solve one of the biggest challenges slowing renewable energy investment in Nigeria — the difficulty developers face in securing financing despite having viable projects.
Senior Partner at Barton Heyman Limited, Anthony Feyitimi, said many renewable energy projects fail to attract investment because different financiers often demand separate and expensive due diligence processes before releasing funds.
“It’s not that the projects are not bankable, it’s that nobody has taken the time to certify that they are bankable,” Feyitimi said.
According to him, the platform introduces standardised templates, procedures and a collaborative structure that allows developers, lenders, investors and guarantee providers to work together under one system.
He explained that the model would help reduce risks, speed up financing approvals and make renewable energy projects more attractive to private investors.
Feyitimi also disclosed that the platform is building on about $1.3 billion in existing concessional funding already tied to renewable energy projects in Nigeria.
The funding includes about $550 million from the NEP1 and NEP2 programmes as well as another $750 million from the World Bank-backed Distributed Access through Renewable Energy Scale-up project, also known as DARES or DES.
He described the funds as critical de-risking capital meant to attract much larger private investments into Nigeria’s energy sector.
“$1.3 billion is exactly one gigawatt, if you do it very well,” he said while stressing the scale of Nigeria’s electricity challenge.
According to him, Nigeria requires at least 100 gigawatts of installed electricity capacity to function effectively as a serious industrial economy, making the proposed 20GW renewable target only a starting point.
Feyitimi recalled a conversation with an Indian counterpart who reacted with surprise after hearing Nigeria’s 10-year 20GW renewable energy ambition.
“When a Nigerian official mentioned 20GW in 10 years, the Indian simply asked, ‘Is that easy?’” he said.
He noted that the reaction was not intended as an insult but highlighted how far behind Nigeria remains in large-scale energy infrastructure development compared to countries making massive investments in electricity generation.
The energy expert pointed out that Lagos alone is estimated to depend on roughly 40GW of fragmented privately-generated electricity, mostly powered by diesel generators used by homes and businesses due to unreliable grid supply.
“That one question has stuck with me for the last six months. It was not an insult. It was a shock,” he added.
The immediate phase of the GFIF rollout will focus on developers with major awards under the DES programme, although organisers clarified that the platform is not limited to government-backed projects alone.
They stated that any renewable energy project with a strong bankable structure could potentially access financing through the platform.
Stakeholders also stressed the need for speed in processing renewable energy investments.
“At the end of the conversations we have today, the next step is to go into detail with qualified parties and finance transactions within days,” organisers said.
“Developers ready to move urgently will be prioritised.”
Managing Partner at Barton Heyman, Olumide Lala, said the entire framework was designed to make private investors more comfortable entering Nigeria’s renewable energy market.
“The idea is that de-risking public funds makes private capital want to play in the energy space,” Lala explained.
“Once you de-risk, debt and equity find it easier to come into the room and take their position.”
Managing Director of the Rural Electrification Agency, Dr. Abba Aliyu, described the GFIF as a blended finance initiative built to scale renewable energy financing nationally by leveraging REA’s project pipeline and result-based financing structures.
Other stakeholders at the event included First City Monument Bank’s Senior Vice President and Divisional Head of Business Banking, George Ogbonnaya, as well as ARMHIIL Chief Investment Officer, Derek Chime, who both discussed financing models and equity participation opportunities within the renewable energy sector.
Deputy British High Commissioner at the UK Foreign, Commonwealth and Development Office, Jonny Baxter, reaffirmed the UK government’s support for Nigeria’s energy transition through UK PACT and other financing initiatives.
Also speaking at the event, Lagos State Governor’s Special Adviser on Climate Change and Circular Economy, Titilayo Oshodi, said the launch of the GFIF signalled a new collaborative phase in efforts to close Nigeria’s electricity gap.
Nigeria Startup News reports that the success of the initiative, however, will depend largely on how quickly investors, financiers and project developers can move from discussions to actual execution in the months ahead.
