Nigeria: SAS Investment Highlights
- The standalone solar (SAS) sector in Nigeria has grown significantly. As of 2019, ~1.8M SAS products were present and in use in the country
- To spur traction, the sector attracted ~USD 227 million from a wide range of investors from 2015 – 2020 with a 22% CAGR within the period
- DFIs, government, and later-stage investors accounted for ~54% of the total investments, from USD 500K in 2015 to over USD 32M in 2020
- Debt, equity, and mixed instruments comprised most of the investment, at 54%, 21%, and 19%, respectively
- Grants comprise the largest number of investments, but they had lower ticket sizes, USD 20K – 520K, provided by donors & early-stage investors
- International SAS companies consistently captured most of the investments, receiving 93% of the total investments, largely in debt & quasi-equity, demonstrating a lack of investment to indigenous companies
- Of the USD 18M deployed in indigenous companies, equity and grants are the predominant forms of financing (81%)
- Local currency financing was limited mainly because it is expensive and local financiers lack understanding of the sector
- Despite the traction, companies continue to cite limited access to financing as a major setback