UK launches accelerator for climate finance Nigeria, calls for proposals | The Guardian Nigeria News
The UK Government funded CFA Nigeria has issued a call for proposals for the Climate Finance Accelerator (CFA) Nigeria programme. CFA Nigeria is a country platform on climate finance designed to respond directly to the urgency and scale of Nigeria’s climate crisis by mobilizing finance for the country’s just transition to a resilient, low-carbon economy.
Project developers in Nigeria contributing to addressing the climate crisis are invited to apply by completing the online application by February 17, 2023. Interested project developers must be in the pre-feasibility phase and should aim to invest at least $1 million with no upper limit.
Crowding in large-scale private funding is essential to delivering on Nigeria’s ambitious climate commitments articulated through the Energy Transition Plan and Nationally Determined Contribution. A fraction of the funds required for the transition are believed to be available in the market, highlighting the scale of the challenge and the immense opportunity.
Deputy British High Commissioner in Lagos Ben Llewellyn Jones said:
“I am delighted that the Climate Finance Accelerator Nigeria is now open for applications from low-carbon projects. The private sector has the potential to play a huge role in meeting Nigeria’s climate change commitments and I’m excited to see which innovative projects find application.
“The CFA has already had great success around the world and in Nigeria and it is fantastic that Nigerian projects continue to receive tailored support from technical and financial experts to increase their chances of securing investments.
“The CFA builds on the UK’s climate leadership as the host of COP26 in Glasgow and is part of the UK’s commitment to support Nigeria’s transition to a prosperous low-carbon future.”
CFA Nigeria is an extension of the pilot CFA launched in 2017 and was successfully established as an independent legal platform in 2022.
As a catalytic public-private initiative, CFA Nigeria offers significant value to project developers, financial institutions and the Federal Government of Nigeria. It creates a common ground for project developers and financial institutions to deploy blended finance, reduce risk and fund low-carbon, resilient opportunities. It serves to improve the bankability of projects and public-private partnerships and to connect projects with financial institutions. It also identifies policy, regulatory and fiscal interventions to enable greater financial flows and creates understanding and awareness of the climate finance supply chain between finance, business and government.
In 2021-22, CFA Nigeria amassed a $445 million pipeline and worked directly on innovative projects to engage Nigerian and global financiers. This year, CFA Nigeria aims to expand its pipeline with two more calls for proposals. It is working extensively with Nigerian financial institutions and members of the Glasgow Finance Alliance for Net Zero Citibank and Standard Chartered to identify ways in which funding can be made available to viable advocates.
Projects are expected to be selected from the country’s priority sectors according to Nigeria’s nationally determined contribution: renewable energy, transport, energy efficiency, housing, oil and gas, agriculture, forestry and land use, waste and circular economy, water and industrial processes. Successful projects receive personal advice and support from technical, financial and gender equality and social inclusion experts to help them get closer to investing. The support will culminate in an event in June 2023 to bring project developers together with potential investors.