In January 2026, the grid collapsed twice. The outages affected large parts of the country and once again showed how unreliable the system still is.

Because of this, many Nigerians rely on petrol and diesel generators. Homes, shops, offices and small businesses use generators to power lights, appliances and equipment.

While this helps people get by, it comes with rising fuel costs, regular maintenance and constant noise. The fumes from generators also lead to health and environmental issues.

Unstable electricity has made it harder to use technology effectively. Smartphones, laptops, internet routers and smart home devices are often affected by outages.

Sudden power cuts and voltage changes damage batteries and internal parts, leading to frequent repairs and shorter device life.

These disruptions slow work, increase expenses and limit the growth of digital businesses.

Clean Energy Comes In

Clean energy is now filling part of the gap. Solar power systems, combined with inverters and battery storage, are becoming more common in homes and offices. Many users see them as a more reliable option than fuel generators.

Across the country, solar installations are increasing as equipment becomes more affordable. Projections suggest renewable energy will make up a larger share of Nigeria’s power supply by 2030.

Government policy has also supported this shift. The Renewable Energy Master Plan (REMP) targets an increase in renewable energy, excluding large hydro power, from 13% in 2015 to 36% by 2030.

Import duty exemptions on solar equipment and support for local manufacturing are part of this effort.

What This Means for Gadgets and Smart Devices

For everyday gadgets, stable power makes a difference. Solar-hybrid systems with battery backup allow phones to be charged, laptops to run and routers to stay on even during grid outages.

Steady voltage also reduces damage to devices. Batteries last longer, components fail less often, and repair costs drop over time.

Manufacturers are responding to this reality. Energy-efficient smartphones, laptops with longer battery life, smart plugs and low-power IoT devices designed for off-grid or hybrid power use are becoming easier to find in Nigeria.

Clean Energy and Electric Vehicles in Nigeria

Clean energy is also important for electric vehicles. EVs need reliable and affordable charging, and without stable power, adoption remains limited. Nigeria’s EV market is still small but growing.

Estimates reveal more than 10,000 electric vehicles, including two- and three-wheel models, are already in use, with steady growth between 2020 and 2025.

Increasing fuel prices and greater awareness of global trends have increased interest in EVs. Local assembly is also expanding, placing Nigeria among the early EV manufacturing countries in Africa.

Challenges, including the fact that public charging stations are limited, vehicle prices are high, and infrastructure is uneven, are still on ground. Even so, policy incentives, planned charging projects and private investment suggest gradual progress.

Therefore, Clean energy provides great benefits. Households spend less on fuel and gain more control over power.

Businesses find new opportunities in manufacturing, energy services and power management. The wider economy benefits from new jobs and reduced dependence on fossil fuels.

For Nigeria, clean energy is not just about sustainability. It is increasingly tied to how people use gadgets, run smart devices and prepare for electric mobility.

Though important to the economy, most still lack adequate financing, and many operate on thin margins with limited power access. 

These same businesses are now facing two major changes at the same time, the need to operate sustainably and the spread of green technology.

Green technology, clean energy, efficient processes, waste innovation and climate‑smart leverage, are changing markets worldwide. My argument is for African SMEs, sustainability need not be a cost centre or an aspirational label. 

With the right mix of policy, finance and adoption, green tech can be a profit engine, making SMEs stronger, more resilient and more competitive.

Top Policies to Watch: 2026 as Year of Institutional Discipline

SMEs: The Backbone of Africa’s Economy

Across the continent, SMEs make up the majority of businesses, informal and formal, and are vital to jobs and growth. They generate over half of Africa’s economic output. In low‑income economies, their share is usually over 50%. 

Meanwhile, less than a fifth of them have access to formal credit, leaving a massive investment gap. 

They are agile. They innovate. But they also feel immediate pressures such as high energy costs, unreliable electricity, and limited access to modern tools. That’s where green tech steps in.

What Green Tech Means for SMEs

Green tech is usually described at a national or multinational scale, but for SMEs, it’s far more concrete:

• Clean Energy: Solar panels and mini‑grids are now more affordable than ever. They replace expensive diesel generators and provide more reliable power.
• Climate‑Smart Agriculture: Irrigation tech, soil health systems and drought‑resistant methods help farms produce more with less risk.
• Circular Economy Innovation: Recycling and waste‑to‑value models turn disposal costs into revenue streams.
• Efficiency Tools: Software and sensors help track and reduce energy, water and fuel use.

These technologies directly relieve cost pressures that have long throttled small businesses.

Turning Sustainability into Profit

The common misconception is that sustainability means higher costs. That’s really not the case:

1. Lower Operating Costs

Energy is a top expense for many SMEs. Solar power and energy‑efficient equipment cut utility bills and stabilise cash flow. Diesel generators are expensive and unreliable; solar kits paired with batteries provide a predictable cost base and reduce downtime. 

Recently, many African nations doubled imports of solar panels, showing expanded adoption of off‑grid clean energy solutions. 

2. New Revenue Streams

Green tech opens revenue paths that didn’t exist before:

• Excess energy sales: Micro solar and wind installations can feed local grids in some markets.
• Green services and products: Eco‑certified goods attract premium buyers domestically and internationally.
• Carbon and sustainability financing: As investors move to climate‑aligned assets, businesses with measurable sustainability credentials gain access to new capital pools.

In Nigeria, for example, SME sector frameworks now channel climate finance toward climate‑smart business practices, providing tax incentives and credit support for firms adopting environmental, social and governance (ESG) criteria.

3. Competitive Advantage

Consumers are paying attention. In urban markets especially, buyers value brands that reduce waste or support local sustainability. This trend influences buying decisions, pricing power and marketing stories.

Limitations and Solutions

Of course, the transition isn’t automatic. SMEs face some limitations:

• Financing gaps: The IFC estimates a funding shortfall in sub‑Saharan Africa exceeding $300 billion for SMEs. 
• Infrastructure deficits: Reliable transmission, storage and connectivity are still uneven, meaning some green tech can’t reach scale without support.
• Skills and capacity: Even affordable tech requires basic training and maintenance skills.

But solutions are emerging. Blended finance, where development finance, private capital and risk guarantees come together, is gaining ground. 

African financial institutions have pledged more than $100 billion for green growth initiatives, aiming to support renewable adoption and sustainable trade. 

There are also targeted funds focused on SMEs. For example, a $150 million solar green bond was launched to support rooftop installations and other productive uses for small businesses.

Policy and Finance: A Macro View

A supportive policy environment is important. Governments that extend tax incentives, import duty breaks on clean tech and clear sustainability standards make it easier for SMEs to adopt innovations. 

National climate strategies that link SME development with energy transition targets align private and public objectives.

At the same time, climate finance flows into Africa are increasing but still far below needs. Recent data show funding grew nearly 50% in a short period, yet meets only about a quarter of the amounts required to fulfil climate commitments by 2030.

Sound policy can bridge that gap, combining international funds with domestic private sector mobilisation.

Across the continent, green tech is already changing business trajectories:

• In rural villages of Mali and beyond, solar mini‑grids are enhancing local commerce, reducing daily energy costs and enabling businesses like welding shops and bakeries to thrive.
• In South Africa, programmes that open the energy market to private producers are expanding renewable capacity and encouraging SMEs to invest in their own energy solutions. 

These are templates, scalable, replicable and profitable.

With Africa’s population projected to approach 2.5 billion by 2050 and energy demand set to surge, green tech adoption is indispensable. 

The renewable transition is a chance to leapfrog legacy infrastructure and unlock prosperity aligned with climate resilience.

SMEs are nimble, they touch communities and can lead this change. They can scale change faster than large firms burdened by legacy systems. So long as financing, policy and capacity building advance together, green tech can be an engine of both sustainability and profit.

What SMEs Should Do Now

1. Get the basics right: Audit energy and resource use to identify quick savings.
2. Explore blended finance: Seek partnerships that de‑risk green investments.
3. Build competencies: Train staff on energy management and digital tools.
4. Tell your story: Document sustainability metrics to unlock premium markets and capital.

SMEs in Africa have long been engines of growth and now they are at the brink of another chapter, 2026, where sustainability is a driver of profitability, not a burden. 

Green tech isn’t just an add‑on but a strategy, and those who leverage it early will thrive well.

By early 2025, the company, with a goal to place one million e-bicycles on African roads by 2030, had dismissed most of its 50 employees across departments. 

Internal documents sent to staff in February cited “a substantial decline in revenue, extremely high cost of operations, an unsustainable employee wage bill, and restructuring of the business to adopt a leaner, more efficient structure.”

Barely 10 employees remained after the first round of layoffs, but they too left by mid-year. “We understand that this news is difficult, and we share in the sadness of having to take these steps,” the company wrote in its redundancy notice. 

“Please know that we are doing everything we can to minimize the impact of these layoffs, and that the decision is driven solely by the need to ensure the company’s sustainability in the face of the current economic climate.”

This reveals a challenge in Kenya’s e-mobility market, where delivery riders and commuters are opting for electric motorbikes instead of bicycles. Riders point to cost and power. 

eBee’s eBX model, priced at KES 99,999 ($774) or about KES 9,500 ($74) per month on lease, remains far out of reach for the very workers it targeted, such as boda boda operators. Even with financing options, demand never picked up.

The company’s problems increased when the Tax Appeals Tribunal ruled against it in February 2025 in a dispute with the Kenya Revenue Authority (KRA). eBee had declared its imports as parts for local assembly, which would attract a 10% duty, but regulators disagreed. 

The tribunal ruled the shipments were fully built electric bicycles, subjecting them to a 25% import duty, 16% VAT, and an excise duty of KES 10,520 per unit. The decision left eBee with an additional tax bill of KES 2.78 million ($20,857).

The ruling stressed that the motor, not the battery, is the key defining part of an electric bicycle. eBee’s claim that sourcing batteries locally qualified its products as “assembled in Kenya” was dismissed. 

Industry watchers warn the case could set a precedent for other electric mobility firms, including BasiGo, Ampersand, and Spiro, which also rely on importing parts.

eBee, however, says it is not shutting down. In a written statement, the startup said it “remains operational and focused on serving customers and partners” while maintaining warranty and after-sales services. It also noted a “renewed strategy to strengthen commercial traction and ensure sustainable growth,” but gave no details on which locations were being merged or what form the strategy would take.

Founded in 2021 by Sten Van Der Ham, Jaap Maljers, Isidoor Maljers, and Joost Boeles, eBee built its brand on assembling and leasing e-bikes for courier companies such as Jumia, Glovo, and Bolt. 

The startup also expanded into Uganda and Rwanda through partnerships. Models like the Nyuki cargo bike, retailing at KES 119,999, were marketed for last-mile delivery.

But the timing worked against it. Kenya’s EV adoption remains weak. By mid-2025, only 671 electric vehicles were officially registered, nearly half of them motorcycles. A report by ALN Kenya has already called for clearer tax guidelines, incentives, and stronger public-private partnerships to prevent more startups from folding under regulatory and financial pressure.

Leadership changes have added more tension. In March, CEO and co-founder Sten Van Der Ham resigned, weeks after the company lost its tax dispute. His departure revealed the fragility of a business once seen as a pioneer in Africa’s clean mobility revolution.

This brings Meta’s total clean energy capacity from Invenergy to 1,800 MW, nearly doubling its earlier figure of 1,000 MW. It’s a direct response to the high energy demands driven by the company’s AI-focused infrastructure.

The new deals cover four major renewable projects scheduled to come online between 2027 and 2028: Yellow Wood Solar (300 MW) and Pleasant Prairie Solar (140 MW) in Ohio, Decoy Solar (155 MW) in Arkansas, and Seaway Wind (196 MW) in Texas. 

The electricity from these sites will feed into their respective regional power grids, but Meta will retain the renewable energy credits, effectively allowing the company to account for the clean power in its carbon reporting.

While financial terms remain undisclosed, the scale and scope of the deal involve Meta committing long-term to a diversified clean energy mix to meet the immense demands of AI processing.

Ted Romaine, executive vice president of Origination at Invenergy, said the partnership goes beyond another supply deal. “Winning the AI race requires reliable, cleaner, affordable energy and energy infrastructure — today and in the future. We’re grateful for our continued relationship with Meta and look forward to future partnerships as we work to strengthen American energy independence and economic prosperity.”

Meta recently inked a 20-year agreement with Constellation Energy for 1.1 gigawatts of nuclear energy from the Clinton Clean Energy Centre in Illinois. It also joined forces with geothermal developer XGS Energy to build a 150 MW water-independent geothermal facility in New Mexico.

Urvi Parekh, Meta’s Head of Global Energy, stressed the urgency behind these moves. “We’re laser-focused on advancing our AI ambitions—and to do that, we need clean, reliable energy. We’re grateful for Invenergy’s longtime partnership that helps us support our energy needs and implement our clean energy goals, and look forward to continued collaboration.”

At the heart of this strategy is a transition toward long-term, stable, and zero-carbon energy sources that can reliably support Meta’s future AI workload. 

The company’s model now relies on both immediate and forward-looking procurement, blending traditional renewables with more experimental and baseload options like nuclear and geothermal.

These infrastructure investments are expected to yield economic benefits. Beyond environmental impact, the projects are projected to create jobs and strengthen local economies in the host states, while also supporting national efforts towards energy independence.

Invenergy, headquartered in Chicago, is currently the largest privately owned clean energy developer in the United States. Its role in powering Meta’s massive data infrastructure reveals how private-sector energy partnerships are becoming indispensable to the tech industry’s future.

This pioneering initiative will provide dispatchable clean energy, enhance grid stability, and help manage peak demand.

The project is expected to generate 3,000 GWh of renewable power annually, reducing carbon emissions by up to 1.4 million metric tons.

Strategic Financing for a Sustainable Future

The blended financing model covers 80% of the total estimated capital expenditure of $590 million, ensuring affordability and private sector participation.

The funding includes:

• AfDB’s $184.1 million package, featuring commercial loans and concessional funding.
• EBRD’s $173.5 million financing, supported by a European Fund for Sustainable Development guarantee.
• BII’s $100 million concessional loan and $15 million returnable grant, making battery storage more viable.

A Milestone in Egypt’s Energy Transition

The solar power plant, developed by Scatec, will be built in two phases, with operations starting in 2026. The energy will be sold under a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee.

Egypt aims to achieve 42% renewable energy in its power mix by 2030, and this project is a major step toward that goal. It will reduce reliance on fossil fuels, create new investment opportunities, and set a precedent for future hybrid renewable energy projects.

Leaders Applaud the Initiative

Egypt’s Minister of Planning, Economic Development, and International Cooperation, Dr. Rania A. Al-Mashat, hailed the project as a landmark in Egypt’s clean energy transition.

“This project exemplifies the scale of renewable energy potential across Africa and demonstrates how strong partnerships and innovative solutions can advance the energy transition,” said Wale Shonibare, AfDB’s director of Energy Financial Solutions.

With global financial backing, cutting-edge technology, and ambitious sustainability goals, Egypt is positioning itself as a leader in renewable energy.

And now, with $320,000 (R6 million) in grant funding from the Energy and Environment Partnership (EEP Africa), the startup has the backing to prove it’s not just an idea.

The project isn’t about selling more chargers or fancy dashboards, but confronting one of South Africa’s most pressing headaches — load shedding — with a tool that’s been parked in our garages all along.

Zimi’s focus is vehicle-to-grid (V2G) technology. In plain terms, it’s a system that lets EVs push electricity back into buildings or the national grid. You go out, you drive, you come back, you plug in — and instead of just topping up your battery, your car can give power back to your home or workplace. When the grid fails, you don’t have to sit in the dark.

“The grant aims to investigate and understand the limitations and challenges of Vehicle-to-Grid (V2G) technology, develop real-world pilot applications to test V2G in practice, and ultimately create a commercial model that operates within existing grid constraints,” said Michael Maas, CEO of Zimi.

The EEP Africa grant didn’t come easy. Over 530 organisations submitted applications. Only 32 got the green light. Zimi was one of them. That’s no fluke.

Zimi already works closely with logistics firms — companies that own large vehicle fleets and lose money every time a truck sits idle. With V2G, that downtime becomes productive. An EV parked at a warehouse can now help power the lights and keep operations running during outages. It’s energy recycling, fleet-style.

“Perhaps the most important factor is a proven track record – something we have established through our work with major logistics providers such as Bakers Logistics,” Maas added.

The EV market in South Africa is still growing, but Zimi isn’t waiting for mass adoption. It’s betting on fleet operators to lead the transition. These are the early adopters who feel the pinch of diesel prices and operational delays more than anyone else. They also have the scale to test and refine new tech like V2G before it hits mainstream consumers.

Zimi’s solution is a complete system that helps businesses monitor their energy usage, manage payments, and even plug into solar power when available. Think of it as a full EV ecosystem, designed for the realities of South African power problems.

The timing couldn’t be better. Volvo recently launched the EX90 in South Africa, one of the country’s first EVs capable of bi-directional charging — a key requirement for V2G tech. Slowly but surely, the hardware is catching up with the vision.

At its core, Zimi is pushing for a mindset shift. The car in your driveway or at the company depot isn’t just for transport anymore. It’s a backup generator, a battery, and a power manager rolled into one.

For a country that still dreads the next stage of load shedding, it’s a breath of fresh thinking. 

With over 22 million petrol and diesel generators in use nationwide, backup power has become a $14 billion industry. But EcoFlow has officially landed, and the company is bringing a whole new energy to the situation.

You see, this isn’t just another company trying to sell us something. EcoFlow, a global power technology company, is here to offer a real alternative—one that’s clean, quiet, and cost-effective. The company gets that Nigeria’s energy problems are a massive headache. As Isaiah Umoh, EcoFlow Nigeria’s Business Development Manager, said:

“With energy reliability being a constant challenge in Nigeria, we recognise the urgent need for a solution that is both practical and sustainable. EcoFlow is here to redefine the power landscape, offering advanced battery-powered solutions that eliminate the noise, pollution, and high running costs of traditional generators. Our goal is to make clean, efficient power accessible to everyone, whether for homes, businesses, or outdoor use.”

And he’s not wrong. Nigeria has an installed electricity capacity of 13,000MW but generates only 4,000MW on most days, forcing millions of households and businesses to rely on expensive, polluting fuel generators. The situation has only worsened since the removal of fuel subsidies, which has drastically increased petrol and diesel costs. The result? More people are desperately seeking alternatives.

A Smarter, More Sustainable Alternative

So, what’s EcoFlow bringing to the table? Portable power stations. And no, these aren’t our old noisy, fuel-guzzling generators. We’re talking sleek, silent, and clean energy solutions that can power everything from your fridge to your business tools.

EcoFlow’s best-selling product range is the new RIVER 3 Max Plus, a portable “never-power-off” solution with:

• 858Wh capacity, capable of running 90% of essential home appliances.
• Fast-charging technology, reaching full charge in just 2.3 hours (AC outlet).
• Solar and car charging compatibility for flexible power options.
• Ultra-quiet operation, running at under 30 decibels—quieter than a normal conversation.
• Long lifespan, powered by an advanced LFP (Lithium Iron Phosphate) battery, lasting up to 10 years.

Beyond the RIVER series, EcoFlow’s DELTA series offers even more power, ranging from 1,000W to 3,600W. At the launch event, a DELTA unit (2,700W output) was demonstrated, effortlessly powering a TV, fridge, and microwave simultaneously. Prices start at ₦250,000 for the smallest unit (300W) and go up to ₦1.1 million for higher-capacity models.

Participants explored eco-friendly solutions, including the RIVER 2 Pro, DELTA 2, and DELTA 2 Max, through engaging and interactive experiences.

The Cost Question—Making Clean Energy Affordable

Now, I know what you’re thinking: “Renewable energy? Isn’t that expensive?” Well, EcoFlow’s got a plan for that too. They’ve partnered with TD Africa to introduce “Buy Now, Pay Later” financing through JOI (Just Own It), allowing customers to spread payments over 6 to 48 months. 

With Nigerians spending up to 40% of their income on electricity and backup power, this flexible payment plan could be a game-changer.

EcoFlow isn’t just here to sell gadgets, the company is here to bolster Nigeria’s power sector. Offering an affordable, long-term alternative to fuel generators, EcoFlow seeks to disrupt the multi-billion-dollar backup power industry and reduce Nigeria’s reliance on fossil fuels.

But it’s also thinking bigger. EcoFlow’s expansion into Nigeria will drive:

• Job creation in sales, distribution, and technical support.
• New partnerships with local retailers and energy providers.
• Greater adoption of renewable energy in homes, businesses, and off-grid communities.

Let’s be real—Nigeria’s power problems won’t disappear overnight. But EcoFlow’s entry is a big step toward cleaner, more reliable energy in the country. We know electricity instability has held back businesses, drained household budgets, and polluted the air for decades, but this is a breath of fresh air.

It’s time to power up differently—smarter, cleaner, and more sustainably. And honestly? I’m here for it.

With CEO Tim Cook recently visiting Beijing, the investment aims to align the company’s Chinese supply chain with global clean energy goals.

The investment is the second phase of Apple’s China Clean Energy Fund, first launched in 2018. The initial phase mobilised $300 million from Apple and 12 of its suppliers, leading to the development of over 1 gigawatt of solar and wind projects across 14 provinces. 

Now, Apple aims to add another 550,000 megawatt-hours of renewable energy to China’s grid, pushing its suppliers further toward sustainable manufacturing.

Jeff Williams, Apple’s chief operating officer, noted the role of Chinese partners in this transition, stating, “Our suppliers in China are promoting world-class progress in the fields of intelligent manufacturing and green manufacturing. With the launch of the second phase of the China Clean Energy Fund, we are honoured to deepen our connection with suppliers across China.”

Apple has kept quiet on which suppliers are part of this new phase, though past participants included major firms like Compal Electronics, Corning, Jabil, and Luxshare. Some of these suppliers have since reshaped their operations—Luxshare, for instance, acquired Pegatron’s iPhone production facility, while Catcher Technology sold key assets to Lens Technology.

This initiative ties into Apple’s environmental strategy. The company has been carbon neutral in its corporate operations since 2020 and is pushing to extend that across its supply chain and products by 2030. In China, about two-thirds of Apple’s manufacturing is already powered by renewable energy, with the company working alongside over 100 suppliers to accelerate the shift.

Cook’s visit to China coincided with the China Development Forum, where he met with senior officials and reiterated Apple’s focus on innovation and sustainability in the country. 

Apple’s green initiatives have previously won global recognition, including a UN Climate Action award, though not without controversy. After announcing the Apple Watch Series 9 as its first carbon-neutral product in 2023, a Chinese environmental group accused the company of “climate-washing.”

Beyond China, Apple’s Supplier Clean Energy Program is pushing its global partners to adopt renewables, revealing the company’s strategy to influence supply chains worldwide.

The explosion, which took place on the Karu Bridge, located between Kugbo and Nyanya in the Federal Capital Territory (FCT), left several people dead and many others injured. 

While acknowledging reports that a bi-fuel petrol tanker was involved, the PCNG Initiative urged the public to refrain from speculation until a full investigation determines the exact cause.

“Preliminary accounts indicate a possible brake system failure leading to the explosion of the petrol storage tank, but it is crucial to avoid speculation until all facts are established,” the statement read.

Authorities, including the FCT Emergency Management Agency (FEMA) and the Federal Fire Service, have launched an inquiry. Teams from FEMA, the Nigeria Police Force, and the National Emergency Management Agency (NEMA) were on the scene all night, working to control the blaze and manage the fallout.

Again, the PCNG Initiative has reaffirmed its focus on promoting compressed natural gas (CNG) as a cleaner and safer energy alternative. It stressed the need for strict safety regulations and pledged to work with stakeholders to prevent similar disasters.

While the exact number of casualties is not known, eyewitnesses described a chaotic scene, with thick black smoke filling the sky and panicked commuters fleeing for safety. Further updates are expected as investigations progress.

Renewable energy startups in Africa have cumulatively raised $836.1 million to date and in recent years, the financial sector has shifted towards green investments.

Clean energy spending now surpasses fossil fuel investments at a ratio of 2:1. In 2024, global energy investment is projected to exceed $3 trillion for the first time, with $2 trillion allocated to clean energy technologies and infrastructure. This is a commendable increase from the $1.8 trillion invested in 2023, showing a 17% year-over-year growth. 

In 2023, global investment in renewable energy reached approximately $619 billion, an 8% increase from the previous year. For every dollar spent on fossil fuels, $1.7 was allocated to clean energy, showing a strong global move towards sustainability.

Projections by Bloomberg disclose that Environmental, Social, and Governance (ESG) assets are steadily growing to surpass $53 trillion by 2025, representing more than a third of the anticipated $140.5 trillion in total assets under management.

The green bond market is also well-prepared for strong growth, potentially reaching $2 trillion by 2025, with a compound annual growth rate of 25%.

Added to this, power sector investment in solar photovoltaic (PV) technology is expected to exceed $500 billion in 2024, surpassing all other generation sources combined. This momentum points to a great period in sustainable finance, driven by technological advancements, supportive government policies, and increased environmental awareness.

Green Startups in Nigeria

Nigeria is quickly becoming a top choice in the global green investment sector. Since 2019, Nigerian climate-tech startups have raised over $3.4 billion, with investors having a growing focus on sustainable development.

One good example is Earthbond, a Lagos-based startup founded in 2023 by Chidalu Onyenso. The company addresses Nigeria’s $14 billion off-grid generator market by facilitating access to solar energy through group financing and carbon accounting. 

In October 2024, Earthbond secured $200,000 in pre-seed funding from Madica Ventures, bolstering Nigeria’s green economy.

Other startups include Daystar Power, which has raised $88.5 million to expand its clean energy products and services, Rensource Energy has raised $28.6 million to expand its Power-as-a-Service (PaaS) offerings across Nigeria and West Africa, Arnergy secured $12 million to continue providing reliable solar power solutions for businesses in emerging markets and Beacon Power Services obtained $2.8 million to enhance its energy management software and analytics for utilities.

Again, Ashipa Electric raised $120,000 to develop reliable microgrids in Africa and the Caribbean Islands, Imperium Energy received seed funding of N20 million from the Development Bank of Nigeria (DBN) for its innovative low-cost clean power solutions and SunCulture provides solar-powered water pumps for irrigation, enabling smallholder farmers to access reliable and sustainable energy solutions. In 2024, SunCulture raised $27.5 million to expand its operations.

Challenges and Opportunities

Challenges

Quite alright, we have a commendable view of the green sector, but some challenges could cause limitations:

1. Funding Gaps: Africa requires approximately $277 billion annually to meet its climate goals for 2030.
2. Geopolitical Conflicts: International conflicts and trade disputes disrupt renewable energy supply chains.
3. Regulatory Instability: Inconsistent policies across regions create limitations for investors.
4. Unpredictable Market: Fluctuations in energy prices and financial markets impact the attractiveness of green investments.

Opportunities

On the contrary, the growth of green investments brings lots of opportunities:

1. Innovations in Clean Technology: Innovations in energy storage and efficiency are reducing costs and increasing adoption rates.
2. Supportive Policies: Governments worldwide are implementing fiscal incentives and environmental regulations to promote green investments.
3. Private Capital Flow: Increased private sector involvement is narrowing funding gaps for climate-tech startups.

Economic Impact of Green Investments in Nigeria

Green investments are influencing Nigeria’s economy in the following ways:

1. Economic Growth: The green economy presents an estimated $250 billion in investment opportunities in Nigeria, driving GDP growth.
2. Job Creation: Renewable energy projects can create numerous employment opportunities, from technical roles to research and development positions.
3. Energy Security: Projects like solar farms and microgrids improve electricity access, reducing reliance on diesel generators. For instance, a $750 million World Bank program aims to enhance electricity access for 17.5 million Nigerians.

Again, the Nigerian Green Bond Market Development Programme, launched in 2018, has helped in promoting climate-resilient financial instruments. This initiative laid the foundation for Nigeria’s maiden sovereign green bond in 2017, valued at $26 million.

The Global Context: Investors and Policies

Investors managing over $29 trillion in assets have called for stronger climate policies, emphasizing the necessity of fiscal incentives to support the clean energy transition. 

Nonetheless, there were issues such as a 20% drop in climate tech funding in the first half of 2024, but targets set at the COP28 summit aim to triple renewable capacity and double efficiency by 2030.

Will Green Investments Dominate?

So, the course of green investments appears to be a good one. Global economic growth is projected to increase by 3.3% by 2025 (OECD). Sustainable finance, driven by ESG-linked products and green bonds, is expected to dominate the financial sector.

In Nigeria, the collaboration of government support and private sector innovation will ensure startups in the industry scale beyond the immediate environment.

Green investments are steadily growing and this is bolstered by technological progress, policy support, and environmental consciousness, bringing a unique opportunity for Nigeria to thrive in sustainable development. 

Strategic investments and strong policies will be essential in realising this vision, making green investments a high contributor to economic growth.