Through the First City Monument Bank (FCMB) Energy Finance Loan, Nigerian homes and small businesses can now borrow up to N10 million to purchase solar panels, batteries, inverters, and other green energy equipment.
The loan is intended to support the use of clean energy in homes and small enterprises like hospitals, schools, restaurants, bars, shops, hotels, and fashion establishments.
The Managing Director of FCMB, Mrs. Yemisi Edun, spoke about the Energy Loan product and called it "another bold intervention by the lender to unlock the potential of the renewable and clean energy sector, provide relief to Nigerians, and encourage clean energy."
She declared: "Economic growth and progress are fueled by energy access. The FCMB Energy Finance offering is a reiteration of our dedication to environmentally responsible energy finance in order to combat global warming, spur company expansion, enhance quality of life, and quicken development through environmentally friendly energy solutionsâ€. More Nigerians are concentrating on alternative energy sources to power their homes and businesses now that the petrol subsidy has been eliminated.
To help the nation fully capitalize on the prospects in these sectors for the benefit of humanity as a whole, we will continue to step up our support for people and enterprises.
Given the widespread usage of tiny gasoline generators to power homes and small businesses, the Bank improved the product to mitigate the effects of reduced subsidies on conventional fossil fuels, which have increased gasoline prices nationwide.
Mr. George Ogbonnaya, Group Head of Business Banking at FCMB, commented as follows:
"We comprehend the difficulties that people and companies encounter when trying to secure money for the production of clean and sustainable power. The loan from FCMB Energy Finance is set up to overcome these difficulties. It is a versatile facility with variable repayment terms of two to seven years at reasonable interest rates. We enjoin Nigerians, especially small business owners, to seize this chance to lower the cost of electricity for their residences and establishments.
The energy finance loan is innovative and coming at the right time when the market needs alternative energy solutions, primarily due to PMS price increase," stated Mr. Ayo Ademilua, President of the Renewable Energy Association of Nigeria, in a statement praising the product.
Dr. Segun Adaju, CEO of Consistent Energy Limited, spoke on carbon financing.
“The 2023 Electricity Act encourages collaborations between the public and private sectors, enabling commercial businesses to engage in the renewable energy sector and spur investment through carbon trading. Following the establishment of the Africa Carbon Markets Initiative (ACMI) in 2022 to unlock the potential of voluntary carbon markets for financing Africa's energy, climate, and development goals, the carbon trading market has grown more appealing, and more parties are starting to promote carbon trading in Africa. It is heartening that FCMB has recognized this and responded by offering a platform through the FCMB Energy Finance Loan product to help Nigerians obtain the much-needed capital for low-cost renewable energy sourcesâ€.
Through a three-pronged strategy of capacity building, facilitating access to capital, and creating chances to link renewable energy entrepreneurs with end consumers, FCMB has assumed the lead in expanding the renewable energy market. The Bank has provided debt financing for mini-grids, commercial projects, and solar household systems to more than 50% of the major developers in Nigeria. Mini-grids, solar energy, and other energy efficiency projects have all received approximately N7 billion in funding so far for implementation.
The FCMB Group Plc includes First City Monument Bank (FCMB) as a member. The Bank is dedicated to promoting equitable and sustainable growth within its communities and seeks to create an African-based supportive ecosystem that links markets, capital, and people. The FCMB is assisting in enhancing the economic well-being of businesses and Nigerians by providing cutting-edge financial solutions including Energy Finance loans.