UCEE Microfinance Bank, a subsidiary of United Capital Plc, is marking its first year in business with the launch of a N50 million solar loan scheme, betting that clean-energy financing will gain traction in a country where unreliable power supply has long stifled growth.
The solar energy loan, unveiled in Lagos, is designed to make solar installations more affordable by offering flexible repayment plans and minimal paperwork.
Nigeria generates about 4,000 megawatts of electricity on average for its more than 200 million people, less than a fifth of estimated demand, leaving businesses and households dependent on costly diesel and petrol generators.
“Our priority has always been the welfare and progress of the people we serve,” said Esther Adeola-Balogun, UCEE’s managing director. “We are providing households and businesses with affordable access to reliable power so they can focus on growth.”
The move comes as green financing gains momentum in Nigeria. The government has pledged to reach net-zero by 2060, while multilateral lenders including the African Development Bank and the World Bank are increasing support for off-grid solar projects.
Analysts say consumer-focused products like UCEE’s could help unlock retail demand for renewable energy, especially among small enterprises that struggle with both power shortages and expensive credit.
Since its 2024 launch, UCEE has rolled out high-yield savings accounts with returns of up to 20 percent, back-to-school loans, and SME financing of up to N50 million.
Its mobile app has become central to its retail strategy, offering free transfers and merchant payments in an increasingly competitive digital-banking landscape.
The bank’s solar product underscores how microfinance institutions are repositioning amid rising energy costs.
Diesel prices have more than tripled since Nigeria scrapped fuel subsidies in 2023, making alternatives like solar more attractive. By tapping into that shift, UCEE aims not only to expand its customer base but also to build a foothold in the growing green-finance market.
