Nomba and Synfare have launched a N2 billion solar financing facility to enable Nigerian small and medium-sized enterprises (SMEs) to transition to renewable energy and reduce operational costs.
The partnership combines the capital resources of Synfare with the payment infrastructure and merchant network of Nomba to provide accessible funding for solar energy hardware.
The initiative seeks to address the acute energy deficit facing small businesses in Nigeria, which frequently rely on expensive diesel generators to maintain operations amid an unstable national grid.
Under the agreement, the N2 billion commitment will be used to provide financing for the procurement and installation of solar power systems, including panels, inverters, and battery storage.
The funding model is designed to lower the barrier to entry for SMEs that lack the upfront capital required for solar installation but can afford monthly repayments based on the savings generated from reduced fuel expenditures.
Nomba will leverage its data-driven approach to assess the creditworthiness of merchants, utilizing payment history and transaction volumes to streamline the loan approval process.
Mitigating the Impact of Rising Energy Costs
The facility arrives at a critical time for Nigerian businesses following the removal of the fuel subsidy in 2023, which triggered a sharp increase in the price of petrol and diesel.
For many SMEs, energy costs now represent one of the largest operational overheads, often consuming a significant percentage of monthly revenue.
According to reports on Nigeria’s energy landscape, the reliance on fossil-fuel generators not only increases costs but also exposes businesses to the volatility of global oil prices and local supply disruptions.
By transitioning to solar energy, businesses can lock in their energy costs over the long term, improving profit margins and ensuring a more reliable power supply for essential equipment.
The partnership between Nomba and Synfare focuses on removing the traditional collateral requirements that often prevent small businesses from accessing bank loans for energy upgrades.
Instead, the financing is structured around the asset itself, with the solar equipment serving as a primary component of the credit arrangement.
This shift toward asset-backed financing for green energy is part of a broader trend across Sub-Saharan Africa, where fintechs are filling the gap left by traditional commercial banks in the SME sector.
The World Bank has previously noted that energy poverty remains a primary constraint to the growth of small-scale manufacturing and services in the region.
The deployment of the N2 billion fund will be phased, with priority given to Nomba’s existing merchant base before expanding to other eligible SMEs across the country.
Applicants will be required to provide proof of business operation and an estimate of their current energy expenditure to determine the appropriate solar capacity and financing term.
The facility is expected to scale as more merchants migrate to renewable energy, potentially attracting further investment from impact funds focused on climate-smart business infrastructure.
The partnership was first detailed in reporting by BusinessDay, highlighting the move as a strategic attempt to integrate financial services with sustainable energy solutions.
Implementation of the funding rollout is expected to commence immediately, with Nomba integrating the application portal into its existing merchant dashboard to facilitate rapid onboarding.
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