3 Nigerian Companies Secure £13.6m UK Funding Boost

THE British Deputy High Commission in Nigeria announced on Tuesday, June 4, that three Nigerian-based clean energy companies have secured a total of $17 million in Foreign Direct Investment (FDI) under the UK-funded Manufacturing Africa Programme. This investment aims to boost renewable energy access in Nigeria.

According to Ndidiamaka Eze, Senior Public Affairs Officer at the British Deputy High Commission, this funding will support the growth of Nigeria's clean energy sector, promoting sustainable development and reducing reliance on fossil fuels. The investment demonstrates the UK's commitment to supporting Nigeria's transition to a low-carbon economy.

“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 $17 million investment is set to have a significant impact on Nigeria's energy sector, aiming to provide energy access to more Nigerians, reduce carbon emissions, create 1,100 jobs, and support thousands of livelihoods.

British Deputy High Commissioner in Lagos, Jonny Baxter, emphasized the UK government's support for the Nigerian federal government's Renewed Hope agenda, which prioritizes private sector-led economic growth. He highlighted the UK's commitment to partnering with Nigeria to achieve its economic development goals, promoting sustainable growth and prosperity for all.

“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 Manufacturing Africa programme provided comprehensive advisory services to the three Nigerian companies, including financial analysis, modelling, commercial diligence analysis, and strategic business planning. This support enabled the firms to secure $17 million in Foreign Direct Investment (FDI) to expand their renewable energy operations.

Since its inception, the Manufacturing Africa programme has made a significant impact in Nigeria, supporting 31 companies across various sectors, including agro-processing, industrial parks, pharmaceuticals, vehicle manufacturing, e-mobility, and renewable energy. By providing expert advisory services, the programme has helped these companies attract investment, driving economic growth and development in the country.

“The programme has helped to attract $85 millions into Nigeria's manufacturing sector since 2020," the statement said.

Three Nigerian companies, Burn Manufacturing, Arnergy, and Koolboks, have secured a total of $17 million in Foreign Direct Investment (FDI) under the Manufacturing Africa programme.

Burn Manufacturing, a pioneer in clean cook stove innovation, has received a significant boost with a $12 million carbon investment from Key Carbon Ltd. This funding will support the company's mission to provide sustainable cooking solutions and reduce carbon emissions.

“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.

Arnergy, a trailblazer in Nigeria's renewable energy sector, excels in designing and manufacturing cutting-edge solar micro-grid and rooftop solutions, harnessing technology to drive sustainable energy access.

“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, a prominent player in Nigeria's renewable energy landscape, has established itself as a leader in the design and manufacture of innovative, technology-driven 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.

Lolade Alonge, Business Communications Manager at Koolboks, reacted to the news, saying: “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.”

Over the past two decades, global leaders have intensified efforts to reduce emissions by transitioning to cleaner energy sources, aligning with the Paris Agreement's goal to limit global warming to 1.5 degrees Celsius by 2030. At the COP 26 conference in Glasgow, Scotland, Nigeria's former President Muhammadu Buhari pledged to achieve net zero emissions by 2060, ensuring that every ton of carbon dioxide emitted is balanced by an equivalent amount of sequestration.

In response to this commitment, the Nigerian government launched its comprehensive Energy Transition Plan (ETP), aiming to provide universal access to modern energy services by 2030 and phase out fossil fuel generators. This ambitious plan aligns with the global momentum to transition away from fossil fuels, as reaffirmed at the COP 28 conference in Dubai, United Arab Emirates, where world leaders agreed to accelerate the transition to cleaner energy sources and mitigate the impacts of climate change.

In a landmark agreement, over 117 countries, including Nigeria, have pledged to significantly accelerate the global transition to renewable energy, aiming to triple the world's renewable energy capacity by 2030. This commitment signals a united effort to reduce dependence on fossil fuels and mitigate the impacts of climate change.