In a move that promises to reshape how small businesses in Nigeria access energy, two innovative companies have joined forces to provide a significant boost to the renewable energy sector. Nomba, a Nigerian fintech company, and Synafare, a renewable energy financing firm, have announced a joint commitment of ₦2 billion, approximately $1.4 million, to finance solar energy systems for small and medium-sized businesses across the country. This significant investment is set to support around 300 Nigerian SMEs over the next 24 months, helping them acquire essential solar equipment including panels, inverters, and batteries. The partnership comes at a crucial time when many Nigerian businesses are struggling with unreliable electricity and limited access to affordable credit.
The Energy Challenge Facing Nigerian Businesses
For years, Nigerian businesses have faced two persistent problems that hinder their growth and productivity. The first is the unreliable nature of the national electricity grid, which forces many enterprises to depend on expensive petrol and diesel generators to keep their operations running. Statistics show that four out of every ten Nigerians rely on generators as the grid continues to fail. The second challenge is the limited access to formal credit, with more than eighty per cent of micro, small, and medium enterprises lacking access to bank loans or other formal financing options.
These challenges are particularly acute for small and medium-sized businesses, which form the backbone of Nigeria’s economy. There are approximately forty million micro, small, and medium enterprises operating across Nigeria, and together they contribute nearly half of the country’s Gross Domestic Product. Despite their importance to the economy, these businesses often struggle to afford the high upfront costs of switching to solar power, even though such a transition would save them money in the long run.
The Growing Demand for Solar Energy
As businesses look for alternatives to an unstable national grid, Nigeria’s solar market is expanding rapidly. However, solar power currently accounts for only one point five per cent of Nigeria’s overall energy mix, according to the Africa Solar Outlook 2026 report. This small percentage highlights a vast, untapped potential for clean energy adoption among businesses seeking stable and cost-effective power solutions. The gap between what businesses need and what they can currently access presents a significant opportunity for companies like Nomba and Synafare to step in and provide the financing that makes solar energy achievable.
How the Partnership Works
The collaboration between Nomba and Synafare is built on a clear and efficient model that leverages the strengths of both companies. Synafare, which has deep connections and expertise in the renewable energy sector, takes the lead in identifying and thoroughly vetting small and medium-sized businesses that are interested in adopting solar power. Once Synafare has pre-qualified these businesses, they submit their applications and Know-Your-Customer documentation to Nomba. Nomba then conducts its own independent credit assessment to evaluate each business. If the application is approved, Nomba disburses the loan directly to the merchant. Synafare, in turn, manages the collection of repayments and supports businesses through the solar installation process.
This partnership combines Synafare’s network and expertise in renewable energy with Nomba’s established lending infrastructure and credit assessment capabilities. The result is a system that ensures businesses receive the financing they need while maintaining responsible lending practices.
Loan Details and Business Support
The financing program offers loans that are tailored to the needs of each business. The average loan amount is around ₦50 million, which is approximately $37,196. Depending on the size of the business and its specific energy requirements, loans can reach up to ₦100 million, or about $74,393. This flexibility allows businesses of different sizes to access the funding they need to make the switch to solar power.
Beyond just providing money, the program is designed to unlock more productive time for businesses. With more reliable solar power, small and medium-sized enterprises can operate for longer hours and significantly reduce their spending on expensive generator fuel. This not only lowers operational costs but also gives businesses greater control over their energy expenses.
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Building on Proven Success
The ₦2 billion commitment is not the first time Nomba and Synafare have worked together. The two companies have been collaborating for more than a year, and their joint lending operations have already shown impressive results. In their previous partnership, they disbursed more than ₦500 million to ten small and medium-sized businesses. What is particularly remarkable is that they achieved this without recording a single instance of default. This strong track record underscores the effectiveness of their credit evaluation and repayment management model and gives confidence in the scalability of this new, much larger commitment.
Leadership Perspectives on the Initiative
The leaders of both companies have expressed strong confidence in the partnership and its potential to transform the Nigerian business landscape. Yinka Adewale, the Chief Executive Officer of Nomba, explained that his company has built its credit business on a simple but powerful principle: lend responsibly and lend directly, so that the value reaches the merchant without unnecessary friction. Adewale stated that the ₦2 billion commitment reflects Nomba’s confidence in Nigerian SMEs and in what the company has built together with Synafare.
Tobi Esho, the Chief Executive Officer of Synafare, highlighted that every business they work with wants more reliable power to run and grow their operations, but the upfront cost of going solar is often out of reach. Esho noted that what Nomba’s direct financing has done, through the businesses that Synafare originates and vets, is close that gap. He expressed excitement that the ₦2 billion commitment will allow them to bring the same impact to a much larger group of Nigerian SMEs.
Impact on Economic Development and Sustainability
The implications of this financing program for Nigeria’s economic development and environmental sustainability are considerable. By facilitating access to solar power, the scheme promises to reduce operational costs for businesses while contributing to a cleaner energy profile for the nation. The growth of the solar sector in Africa is projected to accelerate, with Nigeria poised to be a key market. Initiatives like this are crucial for unlocking that potential, fostering energy independence, and driving economic resilience.
This partnership between Nomba and Synafare represents a vital step in democratizing access to renewable energy finance for Nigerian businesses. It highlights the growing role of fintech in enabling sustainable development and underscores the increasing investor appetite for impactful projects within the African energy transition narrative.
A Blueprint for the Future
The successful deployment of this capital could serve as a blueprint for future large-scale financing of solar solutions across the continent. As businesses across Africa face similar challenges with unreliable electricity and limited access to credit, models like the one developed by Nomba and Synafare could be replicated in other countries. The program demonstrates how strategic partnerships between fintech companies and renewable energy specialists can overcome the barriers that have historically prevented small businesses from accessing clean, affordable energy.
Building On A Great Promise
While the program holds great promise, deploying the funds will require both companies to maintain their existing underwriting and vetting standards while significantly expanding their capacity to identify suitable businesses. Scaling from ten businesses to three hundred is a major undertaking that will test the partnership’s systems and processes. However, the companies have already demonstrated their ability to lend responsibly and manage repayments effectively, which bodes well for the success of this expanded initiative.
An Important Milestone Towards Energy Independence
The ₦2 billion solar financing commitment by Nomba and Synafare marks an important milestone in Nigeria’s journey toward energy independence and economic resilience. By providing direct loans to three hundred small and medium-sized businesses, the program addresses two of the most significant challenges facing Nigerian entrepreneurs: unreliable electricity and limited access to credit. The partnership combines the strengths of both companies to create a model that is efficient, responsible, and scalable. As more businesses gain access to reliable solar power, they will be able to reduce their operating costs, operate for longer hours, and contribute more fully to Nigeria’s economic growth. This initiative not only benefits the businesses directly involved but also sets an example for how fintech and renewable energy companies can work together to drive sustainable development across Africa.
