The Energy Transition Challenge Fund (ETCF) Programme for Nigerian SMES (Up To EUR 800,000 Matching Fund)

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Applications are open for The Energy Transition Challenge Fund (ETCF) Program. The Energy Transition Challenge Fund Programme seeks to empower SMEs to contribute to Nigeria’s Energy transition ambitions and boost the productivity and resilience of key sectors and value chains.

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.

The programme responds to Nigeria’s Energy Transition Plan, which requires an estimated USD 410 billion in incremental funding by 2060. By leveraging catalytic grants and blended finance, ETCF is designed to de-risk private sector investments, crowd in commercial capital, and accelerate the transition.

Energy Transition Challenge Fund (ETCF) Objectives

The ETCF programme seeks to empower SMEs to contribute to Nigeria’s Energy transition ambitions and boost the productivity and resilience of key sectors and value chains. Specific objectives include:

Increasing household access to modern, affordable, and sustainable energy solutions by supporting the transition from traditional fuels to clean and efficient technologies.
Accelerating the energy transition in the commercial, industrial, and agribusiness sectors by promoting investments in clean, efficient, and cost-effective energy solutions that contribute to climate goals.
Powering public institutions with sustainable energy solutions and strengthening the skills and competencies needed for the energy transition through targeted investments in Technical and Vocational Education and Training (TVET) institutions.

The programme is being implemented across Nigeria, with beneficiaries drawn from all regions of the country. While nationwide in scope, the programme places particular emphasis on peri-urban and rural areas, where energy access challenges are most acute.

Funding Details

The ETCF programme provides three windows of funding opportunities:

Window 1: Household Energy Access Window

This window targets private sector companies that distribute renewable energy solutions for households and small businesses in rural and peri-urban areas, including clean cooking and off-grid technologies for productive use.

Minimum fund award – EUR 100,000
Maximum fund award – EUR 800,000
Duration of agreement – Up to 24 months
Matching funds range – 1:1 (minimum 80% in cash, up to 20% in-kind)

Window 2: Commercial and Industrial Window

The window targets private sector companies investing in renewable energy systems for use in commercial, industrial, and agribusiness use in Nigeria with a focus on improving productivity, reducing fossil fuel use, and advancing climate goals.

Minimum fund award – EUR 100,000
Maximum fund award – EUR 800,000
Duration of agreement – 12 to 24 months
Matching funds range – 1:1 (minimum 80% in cash, up to 20% in-kind)

Window 3: Public Institutions

This window will support public institutions (e.g., schools, health centres, local governments) to access clean, reliable energy and invest in Technical and Vocational Education and Training (TVET) to build skills for Nigeria’s energy transition.

Matching Fund Requirement

Applicants must provide matching funds equivalent to AECF’s contribution on a 1:1 basis. At least 80% of the applicant’s contribution must be in cash, with in-kind contributions capped at 20%. AECF will discuss with the applicant how to best agree on the contribution, commitment and valuation.

Eligibility Criteria for Energy Transition Challenge Fund (ETCF)

Eligible applicants must be legally registered for-profit companies physically established in Nigeria, with at least two full accounting years of operation and the ability to provide audited accounts.
Companies must not have received prior funding for the same project within six months and are required to demonstrate commitment to matching contributions based on specified ratios.
Applicants must comply with all relevant laws and regulations, including tax, human rights, labor, and environmental management standards, and must not be involved in corruption, illegal activities, or prohibited business associations.