Three Nigerian-based clean energy companies have collectively secured $17 million in Foreign Direct Investment (FDI) under the United Kingdom (UK-funded) Manufacturing Africa Programme to expand renewable energy access in the country.
This was disclosed on Tuesday, June 4, by the British Deputy High Commission in Nigeria through its Senior Public Affairs Officer, Ndidiamaka Eze.
“The UK-funded Manufacturing Africa programme has scored a significant win for Nigeria’s clean energy sector.
“Three companies in the programme’s portfolio Arnergy, Koolboks, and BURN Manufacturing have collectively secured $17m million in Foreign Direct Investment (FDI), boosting Nigeria’s efforts to expand access to renewable energy solutions.” the statement said.
The investments are expected to provide energy for more Nigerians, reduce carbon emissions, create 1,100 jobs, and support thousands of livelihoods.
In his remarks, the British Deputy High Commissioner in Lagos, Jonny Baxter, said the UK government supports the ambition of the federal government’s Renewed Hope agenda to boost private sector led economic growth in Nigeria.
“We’re funding the Manufacturing Africa programme to provide free advisory services to companies raising finance to expand their capabilities and create new jobs in Nigeria. It’s great to see these companies realize their goals with UK support.” Baxter said.
The Commission noted that the advisory services provided by the Manufacturing Africa programme to these firms included financial analysis, modelling, commercial diligence analysis, and strategic business planning.
To date, the Manufacturing Africa programme has supported 31 Nigerian companies in their efforts to raise investment across various sectors, including agro-processing, industrial parks, pharmaceuticals, vehicle manufacturing, e-mobility, and renewable energy.
“The programme has helped to attract $85 millions into Nigeria’s manufacturing sector since 2020,” the statement said.
The three companies that won the funds are Burn Manufacturing, Arnergy and Koolboks.
It was learnt that Burn Manufacturing is leading the way in clean cook stove innovation and has secured $12 million in carbon investment from Key Carbon Ltd.
“Their new local assembly facility in Northern Nigeria will bolster distribution efforts of electric cook stoves and biomass stoves across East and Central Africa.” the statement said.
Similarly, the Commission described Arnergy as a leading renewable energy company in Nigeria, specializing in designing and manufacturing technology-enabled solar micro-grid and rooftop solutions.
“With a recent $3 million bridge financing from a Shell-backed impact investment company, the company has already raised $7.5 million in their Series B fundraise.” the statement noted.
Arnergy is recognized as a leading renewable energy company in Nigeria, specializing in designing and manufacturing technology-enabled solar micro-grid and rooftop solutions.
“Their pay-as-you-go technology and accessible business model has attracted a 1.5-million-euro subsidy from Beyond the Grid Fund for Africa (BGFA), for launch and expansion in Uganda,” the statement added.
Reacting to the development, Lolade Alonge, Business Communications Manager at Koolboks said “Manufacturing Africa’s financial advisory support when raising our ‘Series A’ came in very handy and has helped us secure funds that will assist with our expansion plans.”
In the last two decades, global leaders have increasingly prioritized reducing emissions by transitioning to cleaner energy sources to meet the Paris Agreement targets of keeping global temperatures below 1.5 degrees Celsius by 2030.
At the United Nations Conference of the Parties (COP 26) in Glasgow, Scotland, Nigeria’s former President Muhammadu Buhari committed to achieving net zero emissions by 2060.
This means that for every ton of carbon dioxide (CO2) emitted by Nigeria, an equivalent amount must be sequestered.
In response, the Nigerian government launched its ambitious Energy Transition Plan (ETP), aiming to provide modern energy services to the entire population by 2030 and phase out fossil fuel generators.
Similarly, during last year’s COP28 in Dubai, United Arab Emirates, the United Nations conference on climate change concluded with an agreement to transition away from fossil fuels.
Over 117 countries, including Nigeria, endorsed a commitment to triple the world’s renewable energy capacity by 2030.
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