The Climate Finance Accelerator (CFA) Nigeria aims to crowd-in private finance at scale to deliver Nigeria’s low-carbon, resilient and just transition in line with the Paris Agreement.

CFA Nigeria creates common ground for project proponents and financial institutions to deploy blended finance, de-risk and fund low-carbon opportunities. It acts to improve the bankability of projects and public-private partnerships (PPPs) and to connect projects with financial institutions. It also identifies policy, regulatory and fiscal interventions to enable greater flows of finance and builds understanding and awareness of the climate finance supply chain between finance, business, and government.

As a catalytic public-private initiative, CFA Nigeria offers substantial value to project developers, financial institutions and the Federal Government of Nigeria.

It acknowledges the size and importance of Nigeria’s economy, the sophistication of its finance sector, and the enormous need for climate finance to support sustainable growth in line with national objectives. CFA Nigeria’s vision is to provide a platform to foster common ground and partnerships in order to mobilise Nigerian and global climate finance at scale, towards environmentally and socially responsible investments that drive mitigation, adaptation, sustainable development goals, and gender inclusion, and lead towards resilience and transformation of economies and societies in Nigeria and Africa.

CFA Nigeria is a build-out of two CFA pilots launched in 2017 and 2019 and was successfully established as an independent legal platform – the Climate Finance and Investment Accelerator Ltd / Gte – in 2022.
The Climate Finance Accelerator is a global technical assistance programme funded by the UK government to directly support climate projects to access finance.
The CFA operates in nine countries (Nigeria, South Africa, Egypt, Türkiye, Pakistan, Viet Nam, Colombia, Peru and Mexico) with the aim of encouraging the flows of finance required to deliver countries’ ambition to limit global warming to 1.5°C. It is currently implemented in Nigeria by the Climate Finance and Investment Accelerator in partnership with Adam Smith International.

A fraction of the funding necessary for Nigeria’s just transition to a low-carbon, resilient economy is considered to be available in the market, demonstrating the scale of the challenge and the immense opportunity.

Crowding in private finance at scale is thus essential to implementing Nigeria’s ambitious climate commitments articulated through Energy Transition Plan and Nationally Determined Contribution (NDC). The 2021 NDC Update estimates investment need of at least $177 billion between now and 2030, of which $122 billion will be targeted at renewable energy. The Climate Finance Strategy and Investment Plan substantially raises this figure to $561 billion and the Energy Transition Plan calculates that circa $410 billion is required to reach net zero over 30 years or an average of $10 billion per annum over the time period.

In 2021 and 2022 CFA Nigeria has proven its concept by preparing an initial pipeline of projects for funding valued at over $445 million and amassing a core group of Nigerian, African and British financial institutions willing to examine them.

It now stands ready to grow into a leading platform for climate finance mobilisation in Nigeria convening and working at the interface of policy, finance and project development. In line with the NDC, it must drive growth and investment in the real sector covering the energy transition in power generation, transport, energy efficiency, residential, and oil and gas; agriculture, forestry and land use; waste and the circular economy; water; and industrial processes.

Services CFA Nigeria will provide are as follows

Raise visibility of and connect projects to finance

We will create value, mobilise multiple sources of Nigerian and global climate finance, and connect them projects via structured dialogues, workshops and webinars in Lagos and London. CFA Nigeria does not compete with financial institutions and will exit once actors agree to advance a transaction.

Share knowledge and insights

We will run an online resource platform available to stakeholders to share knowledge and information about innovative financing structures, investment models, risk mitigation, sectors and technologies of the climate change economy, climate finance, market actors, Nigeria’s just transition strategy, and policy, regulatory and fiscal incentives.

Build investment capacity

We will support knowledge building and transfer to project proponents to improve bankability and deal success and to financial institutions to improve environment, social and governance (ESG) and blended finance skills and understanding and take advantage of climate investment opportunities.

Share knowledge and insights Strengthen the policy and regulatory environment

Working primarily through other partners, we will improve the climate finance enabling environment through advocacy and policy recommendations, advising on sector transition and investment pathways and roadmaps, raising climate finance awareness and skills within government, and connecting actors to support best-in-class practices and outcomes.

Boost pipeline of investable opportunities

We will increase deal flow via a pipeline of quality projects in a good position to achieve financial close and shaped to the needs of financial institutions. Projects will be developed by high growth small and medium-sized enterprises, start-ups, corporates, and government as PPPs.

Convene key decision makers

We will build the investment ecosystem, improve market visibility and connectivity, and encourage participation and entry by financial institutions and project proponents by convening, showcasing opportunities, and strengthening the climate finance supply chain through partnerships.

How CFA Nigeria can support project developers

CFA Nigeria is a practical and transaction-oriented platform that supports climate projects to improve their bankability and appeal to financiers.

Preparing projects that are attractive to investors is challenging. Projects are often perceived as higher risk as new technologies and business models are not widely understood. Market, regulatory and policy barriers can also create blockages in accessing capital at scale.

CFA Nigeria offers a range of support to assist climate mitigation and adaptation projects in accessing finance

Projects should be in one of the following sectors aligned to Nigeria’s NDC and Energy Transition Plan: energy transition in power generation, transport, energy efficiency, residential, and oil and gas; agriculture, forestry and land use; waste and the circular economy; water; and industrial processes. Please note that the CFA does not provide financing to projects.

Project developers in Nigeria that are helping to fight the climate crisis are invited to respond to the call for proposals which is open until 17th February 2023

Eight to ten projects will be selected for support from this call for proposals. The selected projects will be at least in pre-feasibility stage and ideally post-feasibility and should be seeking investment of at least $5 million with no upper limit. Projects wishing to be part of CFA Nigeria should complete the online application.

Apply Here

Projects that are selected by CFA Nigeria will benefit in the following way

CFA Nigeria supports climate projects that meet certain criteria. Projects should:

  • Be designed to achieve measurable climate outcomes in terms of direct or facilitated GHG emission reductions and greater adaptation and resilience;
  • Contribute to Nigeria’s transition to a low-carbon, resilient economy;
  • Have a minimum total financing need of $5M;
  • Have an already proven concept, ideally beyond feasibility stage, with distinct elements of scalability, especially if ticket size is below $10m;
  • Have a business model that will generate commercially viable returns in the long-term, although some element of concessional financing may be required initially;
  • Demonstrate positive social impacts and contribute to furthering gender equality and social inclusion.

CFA Nigeria timeline

Call for proposals opens

Call for proposals closes

Shortlisted projects announced

Project capacity building

How CFA Nigeria collaborates with investors

There is growing interest in climate finance in Nigeria amongst both Nigerian and global financial institutions.

This applies to awareness of both the opportunities presented by climate projects and of the physical and transition risks of climate change. But the volumes of investment are low. Climate Policy Initiative analysis shows that in 2019/2020 an average $1.9 billion per year of public and private capital was invested in climate-related activities in Nigeria but that under a quarter of this total flowed from the private sector.

CFA Nigeria’s core clients are Nigerian, African and global financial institutions

We have consolidated relationships with over a dozen Nigerian, African and global financial institutions that will examine the pipeline. These include commercial banks, private equity, venture capital, angel investors, impact investors, and development finance institutions (DFIs). They have been involved in CFA Nigeria planning, pipeline development and capacity building activities and have agreed to appraise projects and assess investment potential. The involvement of global financial institutions and DFIs can raise investment and cement commitment.

CFA Nigeria can act as a country platform as promoted by the Glasgow Finance Alliance for Net Zero (GFANZ)

GFANZ has called for building new country platforms which deploy blended finance at scale, leveraging private finance at significant multiples and connecting standalone private finance with NDCs and transition plans. Such country platforms can provide a single focal point to channel technical assistance and public and private finance to support the delivery of Paris-aligned NDCs in Nigeria as well as other emerging markets and developing countries.

How CFA Nigeria collaborates with investors

Visibility of climate project pipeline

CFA Nigeria provides local and international financial institutions early visibility of, and closer engagement with, a credible pipeline of profitable projects. The projects we support supported will be socially and environmentally sustainable, contributing to sustainable and inclusive development.

Increased client networks

We will enable financial institutions to raise their profile and expand their networks. Deeper contacts will be fostered with other financiers, project developers, government representatives, and DFIs.

Sharing knowledge and skills

National and global financial institutions in Nigeria can share their standards and  with project developers, to support them in building projects that are more investment-ready. This in turn will help financiers to see the level of readiness of projects improve.

Best practice and capacity building

National and global financial institutions that engage with CFA Nigeria will benefit from the opportunity to better understand alternative financial mechanisms, such as innovative approaches to blended and green finance, of climate instruments such as green bonds, of ESG and sustainability criteria, and of challenges in the ‘climate finance supply chain’ from project origination, to development, financing and refinancing.

Frequently Asked Questions

Does CFA Nigeria provide funding for projects?

We do not provide or guarantee funding for projects. CFA Nigeria facilitates access to suitable investors, and provides capacity building, networking opportunities, and visibility for projects to achieve their low carbon project objectives.

Can the same project developer submit the application for several projects?

There is no limit to the number of projects that apply to the call for proposals as long they meet the requirements described above.

Can projects be in any sector?

Projects should contribute to mitigation and adaptation in line with national objectives in the following sectors: energy transition in power generation, transport, energy efficiency, residential, and oil and gas; agriculture, forestry and land use; waste and the circular economy; water; and industrial processes.

Will projects developed outside Nigeria be considered?

Projects will only considered in Nigeria. It is possible for projects with different branches or partner projects in different countries to take part, as long as the main project is in Nigeria.

Should project with total financing need of less than $5M apply?

If you believe your project will make substantial positive impacts to Nigeria’s transition you can apply. We will consider smaller projects on a case-by-case basis but projects with finance need of at least $5M are preferred.

What financial instruments will be used for each of the projects?

Financial instruments offered by the financiers and investors will depend on the project and its characteristics, and different instruments may be used, such as green bonds, loans, equity investments and public-private partnerships, among others.

Can we submit a proposal at any time during the call for proposals stage? Once a proposal has been submitted, can changes be made?

We suggest applying sooner rather than later as we review proposals on a rolling basis. Once an application has been submitted no changes can be made. A new application must be filled out if changes are required and you should notify us by email to consider only one proposal.

Contact Us

To learn more about CFA Nigeria write to us at info@cfa-nigeria.com