Nigerian fintech Nomba and asset financier Synafare have announced a significant ₦2 billion ($1.4 million) lending commitment to empower local businesses. This initiative aims to finance the acquisition of solar energy systems for approximately 300 small and medium-sized enterprises (SMEs) over the next 24 months. The partnership directly addresses the critical challenges of unreliable electricity and limited access to credit that hinder SME growth in Nigeria.
Addressing Nigeria's Dual Economic Hurdles
Nigerian businesses consistently grapple with an unstable national power grid and restricted access to formal credit, creating a difficult operating environment. Despite contributing nearly half of the country's GDP, over 80% of Nigeria's 40 million MSMEs lack formal financing. This dual crisis forces many enterprises to depend on expensive generators, stifling their potential for growth and innovation.
A Strategic Partnership for Sustainable Growth
The collaboration effectively combines Synafare's deep expertise in the renewable energy sector with Nomba's advanced lending infrastructure. Synafare is responsible for identifying, vetting, and pre-qualifying SMEs that are suitable candidates for solar power adoption. This initial screening ensures that applicants meet the necessary criteria before moving forward in the financing process.
Following Synafare's vetting, applicants submit their documentation to Nomba for an independent and thorough credit assessment. Upon approval, Nomba disburses the loan directly to the merchant, ensuring the funds are used for their intended purpose without friction. Synafare then manages the collection of repayments, completing the streamlined financing cycle for the businesses.
Financial Framework and Business Impact
The ₦2 billion fund will be deployed with loan amounts averaging around ₦50 million, though businesses can access up to ₦100 million depending on their specific needs. This flexible financial structure is tailored to support a wide range of SMEs in acquiring essential solar panels, inverters, and batteries. The program is designed to make renewable energy an attainable investment for these companies.
Access to reliable solar power is expected to unlock significant productive time for participating businesses, allowing for longer and more consistent operating hours. By transitioning from generators, SMEs can drastically reduce their ongoing expenditure on fuel and maintenance. These operational savings can then be reinvested into core business activities to foster sustainable growth and expansion.
Scaling a Proven Model
This large-scale commitment builds upon a highly successful pilot program that has been active for over a year. During this initial phase, Nomba and Synafare disbursed over ₦500 million in loans to ten different SMEs. The partnership proudly reports a zero-default rate, demonstrating the effectiveness of their joint underwriting and risk assessment model.
The proven success of their initial collaboration provides a strong foundation for this significant expansion of the financing model. As Yinka Adewale, CEO of Nomba, noted, the commitment reflects confidence in Nigerian SMEs and the responsible lending framework they have built. This expansion will allow the partners to bring the same positive impact to a much larger group of businesses.
The partnership between Nomba and Synafare represents a targeted and strategic intervention to support Nigeria's economic backbone. By providing accessible financing for solar energy, the initiative not only promotes sustainable practices but also directly tackles the core obstacles limiting SME productivity. This ₦2 billion commitment is poised to foster greater economic resilience and drive meaningful growth for hundreds of businesses across the country.