- The $500 million DRE Nigeria Fund, launched by NSIA, SEforALL, ISA, and Africa50, will finance decentralised energy projects in Nigeria, such as mini-grids and solar home systems.
- The fund aims to attract private sector capital and local investments, addressing issues like currency volatility and limited financing for renewable energy.
- The initiative seeks to enhance energy access for Nigerian households and businesses while supporting industrial development and sustainable infrastructure.
The Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA), and Africa50 have launched a $500 million Distributed Renewable Energy (DRE) Nigeria Fund. The fund aims to boost decentralised energy projects across Nigeria.
NSIA, SEforALL, and Africa50 formalised the initiative at the SEforALL Global Forum in Barbados by signing a Heads of Terms agreement. The fund seeks to attract private sector investment and address challenges like currency volatility, tariffs, and limited local currency financing.
The fund will focus on mini-grids, solar home systems, commercial and industrial (C&I) power solutions, embedded generation, and energy storage. It will improve energy access for households and businesses while ensuring affordability and reliability.
The fund mobilises local currency investments from pension funds and insurance companies. The DRE Nigeria Fund scales up and serves as a model for similar projects under the broader DRE Africa Platform.
Damilola Ogunbiyi, CEO of SEforALL and Special Representative of the UN Secretary-General for Sustainable Energy for All described the fund as “a crucial step toward addressing Africa’s energy challenges.” She highlighted the potential to attract long-term investment to expand decentralised energy solutions and move Nigeria closer to universal energy access.
Aminu Umar-Sadiq, NSIA Managing Director and CEO, emphasised the fund’s potential to bring global investment. He said it drives industrial development, increases energy access, and supports sustainable infrastructure and economic growth.
The International Solar Alliance will contribute to the fund with support from the newly launched Africa Solar Facility. ISA Director General-Elect Ashish Khanna urged private investment and grants to secure Africa’s energy future. He noted that Africa currently receives only 3 per cent of global solar investments and identified Nigeria as a key starting point for expanding energy access across the continent.
Africa50 CEO Alain Ebobisse described the partnership as “a transformative step” to speed up renewable energy investments in Africa. He said the collaboration unlocks financing tools for large-scale projects and helps bridge Africa’s energy access gap.
The DRE Nigeria Fund’s core strategy involves mobilising institutional capital, fostering partnerships with the Nigerian government and private sector, and scaling renewable energy investments. These efforts aim to support economic growth and improve energy access.
In summary, the $500 million DRE Nigeria Fund represents a significant step in expanding decentralised renewable energy in Nigeria. It solves financing challenges, attracts private capital, and models initiatives for other African countries. This fund can potentially improve energy access, drive industrial growth, and support sustainable development across Nigeria and Africa.