Emmanuel Ochayi
Universal Green Energy Access Programme (UGEAP) based in Luxembourg and Union Bank of Nigeria have solidified the groundwork for a strategic alliance aimed at propelling the growth of the renewable energy sector in Nigeria.
This collaboration, signified by the initial signing of a Memorandum of Understanding (MoU), seeks to drive sustainable energy accessibility for households and small to medium enterprises across Sub-Saharan Africa, with a primary focus on Nigeria.
Join our WhatsApp ChannelUGEAP, a 15-year blended finance facility, dedicated to supporting the transition to sustainable energy, has received anchor investment commitment from the United Nations Green Climate Fund (GCF), with DWS Investment S.A. serving as the Investment Manager.
Union Bank of Nigeria, a venerable financial institution established in 1917, brings its extensive experience and a comprehensive portfolio of banking services to this partnership. With a network encompassing over 293 service centers and more than 937 ATMs across Nigeria, the bank stands as a trusted partner in the financial sector.
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Recognizing Nigeria’s energy needs and the mutual aspiration to elevate the proportion of renewable energy in the energy mix, both entities have outlined key focal points.
These include meeting energy demands, reducing industry dependence on expensive electrical energy in alignment with CO2 emission reduction targets, promoting solar home solutions, establishing mini-grids for first-time electrified communities, and fostering both off-grid and on-grid renewable energy production for corporates and productive energy use.
In alignment with these objectives, Union Bank and UGEAP commit to collaborating on a joint initiative with the specific aim of mobilizing and deploying USD 500 million in funding and technical assistance over the next five (5) years.
This initiative seeks to advance the renewable energy sector, benefit businesses and communities in Nigeria, and contribute to broader sustainability goals in Sub-Saharan Africa.
Mudassir Amray, Managing Director and Chief Executive Officer of Union Bank, expressed pride in this initiative, stating, “Union Bank of Nigeria is proud to align with UGEAP in this groundbreaking initiative. Our longstanding commitment to fostering growth in Nigeria and UGEAP’s expertise in renewable energy positions us to drive meaningful change. This collaboration marks a milestone in pursuing renewable energy development in Nigeria, promising a more sustainable and resilient future for our communities.”
Michael Hoelter, Senior Investment Principal of the Sustainable Investments team at DWS, emphasized the versatility of renewable energy technology in addressing global decarbonization goals, stating, “Renewable energy technology is a highly flexible solution for local solutions to the global target to de-carbonise industry and the financial system.”
He highlighted the benefits of solar power and expressed UGEAP’s intention to leverage local partnerships to bring clean energy to households and industrial users.
The collaboration between Union Bank of Nigeria and UGEAP represents a significant stride toward a more sustainable energy future, promising positive impacts on Nigeria’s energy landscape and contributing to broader environmental sustainability objectives in the region.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
