Firm reduces solar financing rate to 3.5%

Politics Spice Special Features Education Sex & Relationship Interview Columns Opinion Advertise with us Firm reduces solar financing rate to 3.5% Appointment & Mgt October 28, 2026 12:02 am By Justice Okamgba Kindly share this story:

Synafare, a renewable energy supply-chain and financing company, has reduced its monthly financing rate for solar businesses to 3.5 per cent from its usual four to five per cent, as it seeks to expand access to credit and equipment across Nigeria’s solar market.

The company announced the reduced rate at its Solar Roundtable 2.0 in Lagos on Saturday, alongside an initiative offering financing of up to N100m per merchant to help businesses purchase equipment, expand operations and reach new markets.

Chief Executive Officer and Co-founder of Synafare, Tobi Esho said the company negotiated special prices with participating distributors for the event, allowing solar businesses to access equipment at lower costs while benefiting from the reduced financing rate.

He disclosed that two merchants had secured financing totalling N170m before the event officially began, while the company was targeting 100 merchants under the initiative.

Esho said individual merchants could access up to N100m, depending on their turnover, with a typical minimum financing amount of about N10m.

The initiative reflects Synafare’s effort to address financing constraints facing solar installers, distributors and other businesses in Nigeria’s renewable energy sector, where access to working capital can determine whether companies can take on larger projects or expand their product offerings.

According to Esho, the company, established about two years ago, has expanded beyond providing credit to installers to connecting manufacturers, distributors and developers through a supply-chain platform.

The platform covers products including inverters, batteries, solar equipment, energy-efficient appliances, electric bikes and tricycles. It also provides logistics and buy-now-pay-later financing to installers, end customers and distributors purchasing products in bulk.

Esho said Synafare worked with more than 2,000 businesses in the renewable energy sector, supporting their access to equipment and financing.

“Credit doesn’t go to businesses just because they exist. Financial institutions want to see predictability, structure and business activity,” he stated.

He encouraged installers to consider expanding into retail and distribution, arguing that bulk purchasing could lower procurement costs and improve profit margins. Businesses seeking larger corporate and government contracts, he added, needed to strengthen their organisational structures, workforce and operational capacity.

At the roundtable, industry stakeholders also identified technical standards, workforce development and reliable electricity access as important factors in expanding Nigeria’s solar market.

Founder and Chief Executive Officer of Kommercial Solar Limited, Babafemi Isaac, said his business had grown from residential installations to serving larger customers, requiring a bigger workforce and the training of roofers and other artisans to meet project demands while maintaining quality.

He identified functionality, safety and aesthetics as important considerations in delivering quality installations.

Founder and Chief Executive Officer of Instoller, Chinwe Davies stressed the importance of staff training and digital tools in helping solar businesses expand across multiple locations.

“The cost of not training your people means your business can go down,” she said, urging business owners to invest in employee development rather than attempt to manage every aspect of their operations themselves.

A COREN-registered electrical engineer and commercial development associate at Elektron Energy Development Strategies Limited, Tega Ishaya said Nigeria’s electricity access gap offered opportunities for solar businesses.

She distinguished between underserved consumers, who have access to unreliable electricity, and unserved communities without electricity access, urging companies to develop solutions for both groups.

The discussions highlighted the need for solar businesses to combine access to finance with reliable supply chains, skilled personnel and quality assurance to take advantage of opportunities in Nigeria’s energy market.

Justice has over three years experience spanning digital and print media. At The PUNCH, he currently covers the automobile sector with special interest in features and industry analysis.

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