AECF Launches Energy Transition Challenge Fund in Nigeria to Accelerate Access to Clean and Affordable Energy

Abuja, Nigeria – October 28, 2025

In a bold move toward a sustainable and inclusive energy future, the Africa Enterprise Challenge Fund (AECF) has launched the Energy Transition Challenge Fund (ETCF), a catalytic initiative to accelerate investment in clean, affordable, and reliable energy solutions in Nigeria.

The Fund aims to support innovative businesses and projects that advance Nigeria’s transition from fossil fuels to renewable energy, in line with the country’s Energy Transition Plan (ETP) and its goal of achieving net-zero emissions by 2060.

Together with partners from the private sector, development agencies, and research institutions, the Fund will identify and finance high-impact solutions in off-grid and mini-grid electrification, clean cooking, waste-to-energy innovations, and green manufacturing. Priority will be given to projects that enhance livelihoods, create green jobs, and strengthen climate resilience, particularly in underserved and rural communities.

Dr. Karin Jansen, Head of Development Cooperation, Embassy of Germany in Nigeria, added:

“We are proud to launch today an important new instrument: the ETCF. This fund will provide co-investment grants alongside consulting and training support for renewable energy and energy efficiency projects that cannot be fully financed through commercial sources.”

Speaking during the Launch, Lotfi Kourdali, Director of West Africa, noted

ETCF is a €20 million co-investment facility designed to catalyze private-sector investment into clean, reliable, and affordable energy solutions by addressing critical bottlenecks across the entire energy value chain, from generation and distribution to last-mile access and productive use of energy to enable households, businesses, and essential public services to power economic growth and improve livelihoods

Applications for the first round of funding will open on November 7, 2025, targeting early and growth-stage enterprises with sustainable business models and measurable social and environmental impact. Successful applicants will receive financial grants, technical assistance, and investment readiness support to scale their innovations.

The Energy Transition Challenge Fund underscores Nigeria’s commitment to promoting a just and inclusive transition, one that ensures no one is left behind in the move toward a greener, more prosperous future.

About AECF
AECF (Africa Enterprise Challenge Fund) is a leading non-profit development organization that supports innovative enterprises in the agribusiness and renewable energy sectors with the aim of reducing rural poverty, promoting resilient communities, and creating jobs.

About the Energy Transition Challenge Fund (ETCF)
The Energy Transition Challenge Fund (ETCF) is a four-year programme funded by Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) via KfW Development Bank (KfW) and implemented by the Africa Enterprise Challenge Fund. The programme supports Nigeria’s Energy Transition Plan, which outlines pathways for transitioning the power, industry, and residential sectors.

Media Contact
Communications Office – AECF
Email: aecfcomms@aecfafrica.org