The initiative is expected to help businesses overcome funding challenges, purchase more equipment, expand their distribution networks and take on larger projects. It could also improve access to solar products in communities where reliable electricity remains a major challenge.
Synafare announced the initiative at its Solar Roundtable 2.0 in Lagos on Saturday, where industry stakeholders discussed financing, access to solar equipment, business expansion and the opportunities emerging in Nigeria’s renewable energy sector.
The company’s Chief Executive Officer and cofounder, Tobi Esho, said Synafare was established about two years ago to address the financial difficulties faced by solar installers and other businesses operating within the renewable energy value chain.
According to Esho, the company has since expanded its operations beyond providing credit to installers. It now connects manufacturers, distributors and renewable energy developers, helping businesses obtain genuine products at competitive prices while accessing the financing needed to grow.
He explained that securing credit requires more than simply running a business, as financial institutions want evidence of stable operations, proper structures and predictable business activity.
“Credit doesn’t go to businesses just because they exist. Financial institutions want to see predictability, structure and business activity,” he said.
Esho noted that the first edition of the Solar Roundtable focused mainly on marketing, business positioning and helping installers organise their operations to improve their chances of securing financing.
The second edition, however, broadened the discussion to include stronger supplier relationships, better product pricing and opportunities for solar installers to expand into retail and distribution.
Synafare currently works with more than 2,000 businesses in the renewable energy sector, supporting equipment purchases, supply chain operations and project execution.
Its operations cover products such as inverters, batteries, solar equipment, energy efficient appliances, electric bikes and tricycles. The company works with manufacturers and authorised distributors, offering logistics support and buy now, pay later financing to installers, end users and distributors purchasing products in bulk.
Synafare Targets 100 Solar Merchants
Under the new initiative, Synafare is targeting 100 merchants, with each eligible business able to access financing of up to ₦100 million, depending on its turnover and capacity to manage the funds.
The company said its typical minimum financing amount is about ₦10 million. Esho also disclosed that two merchants had already received a combined ₦170 million before the roundtable formally began.
The planned financing could provide a major boost to solar businesses struggling with limited working capital and the high cost of purchasing equipment. With access to additional funds, merchants could increase their stock, serve more customers and compete for larger commercial opportunities.
To support participants at the event, Synafare negotiated special prices with participating distributors. It also reduced its monthly financing rate from the usual four to five per cent to 3.5 per cent.
Esho encouraged solar installers to consider expanding beyond installation services into product retail and distribution. He explained that purchasing equipment in larger quantities could reduce costs and improve profit margins.
He also urged businesses seeking corporate and government contracts to strengthen their internal structures, build skilled teams and improve their capacity to deliver projects on a larger scale.
Industry Leaders Stress Skills and Quality
While access to finance remains a major concern for solar businesses, stakeholders at the roundtable stressed that funding alone would not be enough to unlock the sector’s full potential.
During a panel discussion themed “The Future of Solar Trade in Nigeria,” participants highlighted technical standards, skilled manpower, quality assurance and reliable electricity access as important factors that would determine the industry’s long term growth.
Babafemi Isaac, founder and Chief Executive Officer of Kommercial Solar Limited, explained that his company had grown from handling residential installations to serving larger customers.
He identified functionality, safety and appearance as essential considerations when delivering quality solar installations.
Isaac also noted that business expansion had increased the need for a larger workforce, including trained roofers and other skilled artisans. He stressed the importance of maintaining quality control as companies take on more projects and employ additional workers.
Chinwe Udo Davies, founder and Chief Executive Officer of Instoller, similarly emphasised staff training and the use of digital tools to help solar businesses expand their operations across different locations.
She warned that neglecting employee development could put an entire business at risk.
“The cost of not training your people means your business can go down,” she said.
Davies encouraged business owners to invest in building their employees’ skills instead of attempting to personally manage every aspect of their operations. She maintained that a well trained workforce and effective systems were essential for businesses seeking sustainable growth.
Tega Ishaya, a COREN registered electrical engineer and commercial development associate at Elektron Energy Development Strategies Limited, identified Nigeria’s electricity access gap as a significant opportunity for solar energy providers.
She distinguished between underserved consumers, who receive unreliable electricity, and unserved communities that have no access to electricity at all. According to her, solar businesses need to understand these differences and develop solutions that address the specific needs of both groups.
The discussions at the event highlighted the importance of combining financing with efficient supply chains, skilled workers, quality installations and stronger business structures.
As Synafare moves to expand access to capital for solar merchants, the success of the initiative could depend not only on the amount of money deployed but also on how effectively businesses use the funding to increase supply, improve service delivery and extend access to reliable energy across Nigeria.
