G4A and LAPO MFB Launch Game-Changing Financing Program to Tackle Energy Poverty in Nigeria
Lagos, Nigeria – July 9, 2025 — In a bold new step toward tackling energy poverty in Nigeria, GreenMax Capital Group’s Green-for-Access (G4A) First-Loss Guarantee Facility has partnered with LAPO Microfinance Bank (LAPO MFB) to unlock renewable energy financing for thousands of low-income households and small businesses.
Backed by G4A’s pioneering first-loss guarantee, the partnership empowers LAPO MFB to expand its lending for clean energy technologies—including solar-powered freezers, cold rooms, e-mobility solutions, and productive-use equipment—without bearing the full risk of loan defaults. The model derisks lending, strengthens confidence, and removes long-standing barriers for financial institutions entering the clean energy sector.
In its first phase, the collaboration is set to finance ₦2.25 billion ($1.5 million) in renewable energy transactions, reaching an estimated 2,453 customers. The LAPO–G4A partnership is part of G4A’s broader vision to catalyze over $1 billion in climate-aligned financing across Sub-Saharan Africa by 2030, through similar partnerships with local financial institutions in multiple countries.
“This is a unique partnership that we are happy about because of the different perspectives and players involved to ensure we execute,” said Cynthia Ikponwonsa, CEO of LAPO Microfinance Bank. “The first-loss guarantee from GreenMax allows us to commit more deeply—targeting 15% of our lending portfolio to renewable energy. With G4A’s local partner network, we’re not just scaling finance—we’re building an ecosystem.”
The partnership introduces vetted delivery partners—Baobab+, Koolboks, Eja Ice, and SunKing—whose customers will now be eligible for LAPO MFB financing. This approach lets solar companies focus on product delivery while LAPO handles financing, all with G4A covering the downside risk.
“We believe that when strong last-mile distribution meets affordable finance, the magic happens,” said Kolawole Osinowo, Group CEO of Baobab+. “G4A’s guarantee gives LAPO the confidence to act, and our customers the chance to thrive.”
The projected impact is substantial:
- Over 1 million people expected to benefit
- GHG reduction exceeding 20,000 metric tonnes
- Health and livelihood improvements across women-led businesses, food processing hubs, and fish-smoking communities
- Reduced fuel costs, enhanced cold chains, and expanded clean energy access for underserved Nigerians
“To meet SDG7, affordability and access must go hand in hand,” said Sunkanmi Olowo, Director of Business Development at G4A. “We’re not just financing energy—we’re catalyzing local ecosystems. With LAPO, Baobab+, and others on board, G4A is making energy access investable, scalable, and truly inclusive.”
This partnership signals a shift in how clean energy is financed—rooted in local trust, global climate goals, and a shared commitment to unlocking prosperity through power.
About G4A
The Green-for-Access (G4A) First-Loss Facility is a blended finance platform managed by GreenMax Investment Managers (“GIM”), with generous support from the IKEA Foundation and in partnership with CLASP. By providing full or partial first-loss guarantees, G4A catalyzes local currency lending by commercial banks and non-bank financial institutions to consumers, smallholder farmers, and MSMEs for the purchase of productive-use appliances and electric vehicles (EVs). GIM has piloted the facility in Nigeria, Kenya, and Uganda.
About LAPO MFB
LAPO Microfinance Bank is West Africa’s leading national MFI, with over 535 branches and a proven track record in inclusive finance. It is one of the few microfinance institutions on the continent with dedicated capacity for renewable energy lending.
Contact:
Emily Lundberg
Communications Manager, GreenMax Capital Group
elundberg@greenmaxcap.com
Sunkanmi Olowo
Director, Business Development, G4A Facility
solowo@greenmaxcap.com