Union Bank, UGEAP Partner To Drive Renewable Energy Market In Nigeria

The Union Bank of Nigeria and the Luxembourg-based Universal Green Energy Access Programme (UGEAP) have formally established a strategic relationship aimed at accelerating the growth of Nigeria’s renewable energy industry.

The goal of this partnership, which is first denoted by a Memorandum of Understanding (MoU), is to promote sustainable energy access for small and medium-sized enterprises and households in Sub-Saharan Africa, with a particular emphasis on Nigeria.

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UGEAP, a 15-year blended finance facility, is dedicated to supporting the transition to sustainable energy.

The United Nations Green Climate Fund (GCF) has committed the anchor investment to UGEAP, with DWS Investment S.A. as the Investment Manager.

Union Bank of Nigeria is a venerable financial institution established in 1917. The bank brings its vast experience and a comprehensive portfolio of banking services to this partnership. With over 293 service centres and more than 937 ATMs spread across Nigeria, it is a trusted partner in the financial sector.

Recognising the critical need for energy in Nigeria and the shared ambition to increase the proportion of renewable energy in the energy mix, the Parties have identified key areas of focus, which include meeting the energy demands in Nigeria, reducing industry and corporate dependence on expensive electrical energy to align with climate targets for CO2 emissions reduction, promoting solar home solutions, mini-grids for first-time electrified communities, and both off-grid and on-grid renewable energy production for corporates and productive use of energy.

Accordingly, Union Bank and UGEAP pledge to work together on a collaborative project with the particular objective of raising and allocating USD 500 million in capital and technical support during the following five years.

The objective of this effort is to promote the renewable energy industry, assist Nigerian businesses and communities, and support Sub-Saharan Africa’s larger sustainability objectives.