- Nigeria has launched a $300 million fund to finance distributed renewable energy projects, including solar systems and mini-grids.
- NSIA and Africa50 will manage the fund with support from SEforALL, the World Bank and other development partners.
Nigeria has launched the $300 million Nigeria Distributed Renewable Energy (DRE) Fund to expand electricity access through solar power and mini-grids.
The Nigeria Sovereign Investment Authority (NSIA) and Africa50 will manage the fund. Sustainable Energy for All (SEforALL), the World Bank and other partners will support the platform.
The fund will finance distributed renewable energy projects in communities with limited or unreliable grid electricity. It will also support projects that can supply power directly to homes and businesses.
The initiative seeks to address electricity access challenges without relying solely on national grid expansion. Developers can use distributed systems to provide electricity closer to consumers. NSIA Managing Director and Chief Executive Officer Aminu Umar-Sadiq described the launch as a signal to investors.
“This is a major development milestone,” Umar-Sadiq said. He added that the launch signals that Nigeria’s distributed renewable energy market is “investable, credible and ready to operate at scale.”
The platform will provide investors with a dedicated channel for financing distributed renewable energy projects. Eligible projects will include mini-grids and standalone solar systems. The financing model could help reduce funding barriers for projects in underserved communities. It could also support electricity access where grid connections require significant infrastructure investment.
Small and medium-sized businesses could also benefit from expanded solar and mini-grid deployment. More reliable electricity could reduce their dependence on diesel and petrol generators. The fund also supports Mission 300, the African initiative that seeks to connect 300 million people to electricity by 2030. Africa50 Group Chief Executive Officer Alain Ebobissé said the platform combines different areas of expertise to address Nigeria’s electricity needs.
He said the partnership combines NSIA’s knowledge of the Nigerian market with Africa50’s investment experience. It also draws on SEforALL and World Bank expertise in energy access.
Ebobissé said the model could extend beyond Nigeria. Partners could adapt the approach for renewable energy investment in other African markets. SEforALL Chief Executive Officer and UN Special Representative for Sustainable Energy for All Damilola Ogunbiyi said the fund could convert Nigeria’s electricity access plans into investments and new connections.
“The commercial launch of the Nigeria Distributed Renewable Energy Fund is a significant step towards delivering Nigeria’s electricity access ambitions and advancing the objectives of Mission 300,” Ogunbiyi said.
The World Bank is contributing $25 million through the International Development Association (IDA). The contribution forms part of the platform’s effort to attract additional capital for electricity projects.
World Bank Group Managing Director of Operations Anna Bjerde said reliable electricity remains important for economic development. “Reliable and affordable energy is required for job creation and economic transformation in Africa,” Bjerde said. The World Bank said its $25 million contribution demonstrates its commitment to expanding electricity connections. The funding will also help attract additional investment into distributed energy projects.
The International Solar Alliance also sees the platform as a potential financing model for other African countries. Its Director General, Ashish Khanna, said Nigeria could provide lessons on attracting private capital into renewable energy.
Khanna also highlighted opportunities for knowledge sharing between Africa and India. Such cooperation could support the development and financing of renewable energy projects.
The fund will therefore combine public and development finance with private investment. This approach seeks to mobilise the capital required to expand electricity access across Nigeria.
The platform will focus on distributed generation rather than relying exclusively on large power plants and the national grid. Mini-grids can supply clusters of homes, businesses and communities, while standalone solar systems can serve individual users.