Experts Advocate Blended Finance For Energy Sector

Industry experts and policymakers have called on governments and financial institutions to scale up blended finance mechanisms to close the energy access gap in Nigeria.

They spoke at the public release and presentation of a book titled, “Financing the Energy Transition in Africa: Interconnected Mini-Grids and Sustainable Development in Nigeria.”

Authored by Dr Cheryl Ikejiaku, the book advocates a fundamental rethinking of Africa’s financing strategy. It highlights the inadequacy of traditional models, such as blended finance, which has largely failed to leverage private capital at scale.

In his key note address, the managing director, Rural Electrification Agency (REA), Dr Abubaker Abba Aliyu, represented by Mallam Ibrahim Kashim, director of Legal Services said, ” This book makes a compelling case for blended finance as the architecture of choice for scaling up mini-grids deployment. It examines green bonds, development finance institutions, public-private partnerships and concessional capital.”

He added that neither public funds nor private capital alone can solve the sector’s billion-dollar shortfall.

In her remarks, Ikejiaku,noted that the financial aspect of energy can be shared across various strata of society.

“Whether you are a high income or low income earner, we should be able to afford energy that is scalable. Blended finance is the option that I proffer as the solution to get energy access across to everyone.”

Earlier in his welcome address, Halis Mohamed, managing director, Off-Grid Limited, explained that the book arrived at the right time as it will give energy experts a shared vocabulary, a body of evidence and a framework to think more clearly together

The book examines the challenges and opportunities of Africa’s shift to renewable energy, offering a strategic roadmap for policy-makers, investors, and energy stakeholders across the continent.