Skip to main content

Three Nigerian companies bag $17 million UK investment support fund

By June 20, 2024MA News

It said the investments are expected to provide energy for more Nigerians, reduce carbon emissions, lead to the creation of 1100 jobs, and support thousands of livelihoods.

Three Nigerian-based Clean Energy Companies have collectively secured $17 million in Foreign Direct Investment (FDI) under the United Kingdom (UK-funded) Manufacturing Africa Programme to expand renewable energy access in the country.

This was disclosed in a statement issued Tuesday by the office of the British Deputy High Commission in Nigeria through a Senior Public Affairs Officer, Ndidiamaka Eze.

“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.

It said the investments are expected to provide energy for more Nigerians, reduce carbon emissions, lead to the creation of 1100 jobs, and support thousands of livelihoods.

In his remarks, the British Deputy High Commissioner in Lagos, Jonny Baxter, said the UK Government supports the ambition of the federal government’s “Renewed Hope agenda” to boost private-sector led economic growth in Nigeria.

“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 realise their goals with UK support,” Mr Baxter was quoted as saying.

The Commission noted that the advisory services that #ManufacturingAfrica provided to these firms included financial analysis, modelling, commercial diligence analysis and strategic business planning.

To date, it said the Manufacturing Africa program has supported 31 Nigerian companies in their journey to raise investment across sectors including agri-processing, industrial parks, pharmaceuticals, vehicle manufacturing, e-mobility, and renewable energy.

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

The companies

The three companies that won the funds are Burn Manufacturing, Arnergy and Koolboks.

According to the statement, Burn Manufacturing is at the forefront of clean cookstove innovation, and has secured $12 million in carbon investment from Key Carbon Ltd.

“Their new local assembly facility in Northern Nigeria will bolster distribution efforts of electric cookstoves and biomass stoves across East and Central Africa,” the statement said.

Likewise, the Commission described Arnergy as a leading renewable energy company in Nigeria that specialises in designing and manufacturing technology-enabled solar micro-grid and rooftop solutions.

“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.

Additionally, the Commission said Koolboks is revolutionising access to refrigeration services, particularly for underserved communities and women entrepreneurs through their solar-powered cooling systems.

“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.

Reacting to the development, Lolade Alonge, Business Communications Manager at Koolboks was quoted 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.”

Nigeria’s clean energy strategy

Over the past two decades, world leaders have increasingly sought to reduce emissions by transitioning to cleaner energy sources in order to achieve the Paris Agreement targets of keeping global temperatures below 1.5 degrees Celsius by 2030.

At the United Nations Conference of the Parties (COP 26) in Glasgow, Scotland, Nigeria’s former President Muhammadu Buhari made a commitment that Nigeria will go net zero by 2060. By implication, every ton of carbon dioxide (CO2) that Nigeria puts out, its equivalent has to be sequestered.

This prompted the Nigerian government to launch its ambitious Energy Transition Plan (ETP) .

Among other objectives, the energy transition plan seeks to “bring modern energy services to the full population” by 2030 and eliminate fossil fuel generators.