Nomba, a financial services company for African businesses, and Synafare, a fintech focused on renewable-energy financing, have announced a N2 billion commitment to expand access to solar-energy financing for small and medium-sized enterprises (SMEs) across Nigeria.

The companies disclosed this in a statement yesterday, saying the new commitment builds on more than a year of collaboration through which Nomba has provided direct financing to SMEs seeking to acquire renewable-energy equipment.

Speaking on the initiative, Nomba's Chief Executive Officer, Yinka Adewale, said the partnership demonstrated the company's approach to responsible lending.

"At Nomba, we've built our credit business on a simple principle: lend responsibly, and lend directly, so the value reaches the merchant without unnecessary friction," Adewale said.

Keep up with the latest headlines on WhatsApp | LinkedIn

He added: "Our partnership with Synafare has shown what that looks like in one of Nigeria's most important sectors, solar energy access. Committing N2 billion to scale this model is a statement of confidence in Nigerian SMEs and in what we've built together with Synafare."

The CEO of Synafare, Tobi Esho, said the partnership was designed to address the high upfront cost of solar equipment, which often prevents businesses from transitioning to renewable energy.

"Every business we work with wants solar power equipment to run and grow their operations, but the upfront cost of solar products is often out of reach.

"What Nomba's direct financing has done, through the businesses we originate and vet, is close that gap. This N2 billion commitment lets us bring that same impact to a much larger group of Nigerian SMEs," he added.