The Shell-funded impact investment company, All On, has announced a $1.5 million investment in Auxano Solar Nigeria Limited to scale its operations over the next five years.“This investment would guarantee the expansion of Auxano’s solar panel assembly capacity by over 50 percent and is a great win for local content,” said All On in a statement on Tuesday.
“Auxano’s growth as the first private assembler of solar panels is a success story that ought to inspire other players in the renewable energy sector in Nigeria,” the Programmes and Investments Manager, Afolabi Akinrogunde, said.
All On’s contribution will be a blend of equity and debt investments that will facilitate the increase of Auxano’s capacity utilization by funding its expansion plans, covering facility relocation and meeting the working capital financing needs of a rapidly growing company that is also involved in the sales and distribution of renewable energy components such as hybrid inverters and charge controllers.
The investment will also enhance the company’s services such as after-sales installation, management and maintenance services of renewable power solutions to its customers.
The All On Hub will also provide development support, including functional and innovation support, business opportunity development and investor/donor engagement.
“This continued support from All On is in response to an increase in demand of our goods and services,” said COO of Auxano Solar, Chuks Umezulora.
”It is also an indication that Nigerians are increasingly becoming more accepting of solar as an alternative to on-grid energy and diesel generators,” he said.
At the initial stages of the business just three years ago, the company hired students from a local technical school, who were trained by foreign experts to manage costs. Today, Auxano is benefitting from an investment in excess of $1m.
“We are very happy about this announcement which aligns with our policy objective of driving economic development,” said Rural Electrification Agency MD, Ahmad Salihijo Ahmad. “This support from All On comes during a great economic downturn and injects significant capital that will scale Auxano’s solar panel assembly operations at a time when localizing supply chains is more critical than ever.
“We hope that this investment will encourage many more investors to see that Nigeria’s renewable energy sector is still very much open for business,” he said.