Nigerian fintech Nomba and renewable-energy financing company Synafare are committing ₦2 billion, equivalent to about $1.4 million, to help 300 small and medium-sized businesses acquire solar power systems over the next 24 months. The initiative targets one of the biggest challenges facing Nigerian businesses: the combination of unreliable electricity and limited access to affordable credit.
The financing will support the purchase of solar panels, inverters and batteries, allowing businesses to reduce their dependence on petrol and diesel generators. For many Nigerian SMEs, generators remain an essential part of daily operations, but rising fuel and maintenance costs can significantly reduce already-tight profit margins.
The partnership brings together Nomba’s lending infrastructure and Synafare’s renewable-energy financing network. Synafare will identify, vet and pre-qualify businesses interested in adopting solar power. Those businesses will then submit applications and required know-your-customer documents to Nomba, which will independently assess their creditworthiness before approving and disbursing loans directly to merchants.
Synafare will manage repayment collections, while Nomba provides the capital and handles the credit assessment. Loans are expected to average around ₦50 million, with eligible businesses able to access as much as ₦100 million depending on their size and energy requirements.
The programme addresses a significant financing gap. Nigeria has roughly 40 million micro, small and medium-sized enterprises, which contribute nearly half of the country’s GDP. Yet more than 80% of these businesses reportedly lack access to formal credit. This makes the upfront cost of solar installations particularly difficult to absorb, even when switching from generators could lower long-term energy expenses.
For Nomba, the initiative expands its merchant-lending business into energy financing. The company believes providing credit directly to businesses can help merchants invest in assets that improve their productivity rather than simply covering short-term expenses.
Synafare, meanwhile, is addressing one of the biggest barriers to solar adoption: the initial cost. By spreading payments over time, businesses can access equipment without having to make the entire investment upfront. More dependable electricity could allow SMEs to operate for longer hours, reduce fuel spending and devote more resources to growing their core businesses.
The new commitment builds on an existing relationship between the two companies. Nomba and Synafare say they have already disbursed more than ₦500 million to 10 SMEs over more than a year without recording a default. The new ₦2 billion commitment represents a major expansion of that model.
Scaling from 10 businesses to approximately 300 will nevertheless test the partnership’s ability to maintain disciplined underwriting and effective customer vetting. If it succeeds, the model could demonstrate how fintech lending can help solve infrastructure problems alongside traditional financial needs.
For Nigerian SMEs, the initiative represents more than access to credit. It offers a pathway to more reliable power, lower dependence on generators and potentially stronger business resilience. As energy costs continue to influence the economics of running a business in Nigeria, financing solar adoption could become an increasingly important part of the country’s fintech and clean-energy landscape.
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