SUNREF Nigeria extends loans to manufacturers for transition to cleaner energy
By Rukayat Moisemhe
The Sustainable Use of Natural Resources and Energy Finance (SUNREF) Nigeria has urged manufacturers to take advantage of its single digit interest loans.
The body also advised manufacturers to utilise its technical assistance facility to switch to renewable energy to power their operations.
Mr Javier Betancourt, SUNREF Nigeria Team Lead, in a statement on Wednesday in Lagos, said the opportunity was also opened to other forms of businesses.
The News Agency of Nigeria (NAN) reports that in 2020, SUNREF launched the green financing line for renewable energy projects by the French Development Agency (AFD) for the development of green energy projects in Nigeria.
SUNREF has 70 million dollars credit line funded by the AFD and seven million dollars performance-based investment grant provided by the European Union Infrastructure Trust Fund (EU-ITF).
Betancourt said that the call became pertinent in the face of rising costs of premium motor spirit, and diesel which accounts for about 40 per cent of production cost for manufacturers in Nigeria.
He said that organisations in Nigeria that applied before April 2023 were also eligible for 10 per cent investment grants alongside their loans.
Betancourt said that the SUNREF initiative was hosted by the Manufacturers Association of Nigeria (MAN), and technical assistance provided by Winrock International which supports all projects financed through the credit line.
“The application process is very simple: simply apply on our website.
“Once the SUNREF Nigeria team finds your project eligible, it is reviewed by either Access Bank or United Bank of Africa (UBA) who are our partner banks according to their credit risk review criteria.
“The loan application is approved if it meets the criteria,” Betancourt said.
He noted that numerous organisations had applied for the loan with reference to the first beneficiary of the facility; the Lagos Business School (LBS).
Betancourt said the LBS would receive N140 million loan through Access Bank, at nine per cent interest with an eight year repayment period.
“The loan includes a 10 per cent investment grant.
“Through this loan, the LBS which is the leading business school in Africa, will be embarking on a 350KW solar project that will significantly reduce their soaring operating energy cost.
“As well as cater for 60 per cent of their electricity requirements,” he said.
(NAN)
