Luxembourg-based Universal Green Energy Access Programme (UGEAP) and Union Bank of Nigeria have solidified their strategic partnership to drive the development of the renewable energy market in Nigeria. The collaboration, marked by a Memorandum of Understanding (MoU), aims to facilitate sustainable energy access for households and small to medium businesses in Sub-Saharan Africa, with a primary focus on Nigeria.
UGEAP, a 15-year blended finance facility, is committed to supporting the transition to sustainable energy, with the United Nations Green Climate Fund (GCF) providing the anchor investment. Union Bank of Nigeria, established in 1917, brings its extensive experience and comprehensive banking services portfolio to the partnership, serving as a trusted financial partner in Nigeria.
Recognizing the critical need for energy in Nigeria and the shared ambition to increase the proportion of renewable energy in the energy mix, the parties have identified key focus areas. These include meeting energy demands, reducing industry and corporate dependence on expensive electrical energy to align with climate targets, promoting solar home solutions, and supporting mini-grids for first-time electrified communities.
In line with their goals, Union Bank and UGEAP commit to a joint initiative with the specific objective of mobilizing and deploying USD 500 million in funding and technical assistance over the next five years. This initiative aims 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 CEO of Union Bank, expressed pride in aligning with UGEAP, highlighting their commitment to driving meaningful change in renewable energy development in Nigeria. Michael Hoelter, Senior Investment Principal of the Sustainable Investments team at DWS, emphasized the flexibility of renewable energy technology and the importance of local solutions in achieving global decarbonization targets. UGEAP aims to leverage local partnerships to bring clean energy to households and industrial users, and Union Bank’s participation strengthens this joint development path.
