The Role of Result Based Financing in Driving Nigeria's Transition

Results-Based Financing (RBF) is emerging as a transformative tool to accelerate Nigeria’s energy transition, offering a mechanism where payments are linked to measurable outcomes such as improved electricity access, reduced carbon emissions, and enhanced renewable energy capacity. By incentivising tangible results, RBF fosters innovation, accountability, and efficient resource allocation in the energy sector.

Our report explores key RBF projects in Nigeria, including the Nigeria Electrification Programme (NEP), the UEF (Universal Energy Facility)’s Stand-Alone Solar for Productive Use Programme, and the SDG 7 Clean Cooking Programme. These initiatives have led to significant advancements in rural electrification, clean cooking access, and energy efficiency. As Nigeria prepares to scale its energy transition efforts, the effective design and implementation of RBF will be crucial in unlocking further investment, reducing inefficiencies, and achieving long-term sustainability goals.