LAPO Microfinance Bank Signs MoU with Baobab+ and GreenMax to Expand Access to Clean Energy Across Nigeria
Lagos, Nigeria – July 1, 2025 — In a strategic move to deepen its sustainability and social impact agenda, LAPO Microfinance Bank has signed a tripartite Memorandum of Understanding (MoU) with Baobab+ and GreenMax Capital Advisors. The partnership is aimed at scaling access to renewable energy solutions across Nigeria, targeting underserved households and small businesses with affordable clean energy financing options.
Facilitated by GreenMax, which will provide a First Loss Guarantee, the agreement underscores a shared commitment to accelerating Nigeria’s transition to sustainable energy, in line with Sustainable Development Goal 7 (SDG 7) — ensuring access to affordable, reliable, sustainable, and modern energy for all.
Baobab+, a leading social enterprise specializing in digital and solar energy products, will spearhead the product deployment through its extensive Pay-As-You-Go (PAYG) platform and last-mile distribution network. LAPO MfB, on its part, will extend tailored credit facilities to enable clients, especially women and low-income households, to acquire solar home systems, clean cookstoves, and other decentralized energy solutions.
Speaking at the signing, Cynthia Ikponmwosa, Managing Director of LAPO Microfinance Bank, noted that the agreement reinforces the bank’s long-standing commitment to sustainability.
“LAPO Microfinance Bank began its journey into the sustainability space as far back as 2012, with initiatives focused on financial inclusion and environmental responsibility. This partnership marks a new phase in that journey, enabling us to finance clean energy solutions that improve livelihoods, reduce carbon footprints, and close the energy access gap for millions of Nigerians.”
Despite global progress in electrification, over 666 million people worldwide still lack access to electricity, with sub-Saharan Africa accounting for more than 85 percent of this number, according to the 2024 Tracking SDG7: Energy Progress Report published by the United Nations and World Bank. The report also highlights that off-grid solar solutions accounted for over 55 percent of new electricity connections in Africa in 2023, affirming the growing relevance of decentralized energy systems.
Kolade Osinowo, Group CEO of Baobab+, described the partnership as a major leap in scaling inclusive energy access.
GreenMax Capital Advisors, an impact-driven risk mitigation firm, will support the rollout by providing a First Loss Guarantee—de-risking the project for LAPO MfB and enabling the scale-up of clean energy financing with reduced exposure.
Sunkanmi Olowo, Director, Business Development, GreenMax Capital Advisors, emphasized the catalytic role of risk-sharing models in advancing climate-aligned investments.
“This MoU is a textbook example of how partnerships can unlock innovation. Our First Loss Guarantee is designed to reduce financial risk and give institutions like LAPO Microfinance Bank the confidence to support high-impact, low-income markets. Together, we’re not only expanding energy access but contributing to Nigeria’s clean energy ambitions.”
Under the partnership, the organisations will provide community-based awareness campaigns, robust monitoring of environmental and social impact indicators such as carbon emissions reductions and improved household savings.
The MoU signals a landmark moment in Nigeria’s renewable energy ecosystem and reflects the broader shift toward inclusive green finance.
For LAPO MfB, it is another step in its evolving mission to drive sustainable development—financially, socially, and environmentally.
