The Federal Government, through the Nigeria Sovereign Investment Authority, and its development partners have commercially launched a $300 million investment fund to expand off-grid electricity and distributed renewable energy projects across Nigeria.
The Nigeria Distributed Renewable Energy Fund, jointly managed by the NSIA and Africa50, is expected to mobilise public and private capital for mini-grids, standalone solar systems and other decentralised electricity projects, particularly in communities and businesses underserved by the national grid.
The NSIA, Africa50 and Sustainable Energy for All announced the commercial launch on the sidelines of the United Nations General Assembly, according to a statement issued by the NSIA on Monday.
The partners said the launch marked the transition of the $300 million fund from its structuring phase to active capital deployment, creating a dedicated financing platform for investments in Nigeria’s distributed renewable energy market.
The initiative comes amid Nigeria’s persistent electricity supply challenges, which have left millions of households and businesses dependent on generators and other alternative sources of power.
According to the statement, the fund is aligned with Nigeria’s energy-access objectives and Mission 300, an initiative aimed at providing electricity access to 300 million people across Africa by 2030.
“The commercial launch signals growing market readiness and investor confidence in Nigeria’s distributed renewable energy sector,” the statement said.
“The Fund represents an important step towards mobilising the scale of capital required to expand off-grid and distributed renewable energy solutions and reach communities and businesses that remain underserved by traditional energy infrastructure.”
Distributed renewable energy projects generate electricity close to where it is consumed, reducing reliance on large central power plants and the national transmission network.
The Managing Director and Chief Executive Officer of NSIA, Aminu Umar-Sadiq, described the launch as a signal to investors about the potential of Nigeria’s renewable energy market.
“This is a major development milestone. It is a strategic signal to markets, investors, governments and development partners that Nigeria’s distributed renewable energy market is investable, credible and ready to operate at scale,” Umar-Sadiq said.
The fund is expected to support projects including mini-grids and standalone solar systems as Nigeria seeks to close its electricity-access gap while increasing investment in cleaner energy sources.
The Group Chief Executive Officer of Africa50, Alain Ebobissé, said the structure brought together domestic expertise and international development financing.
“What sets the Nigeria DRE Fund apart is the strength of the partnership: NSIA’s local market expertise, Africa50’s pan-African investment and fund management capabilities, SEforALL’s energy-access leadership, and the World Bank’s global energy thought leadership and catalytic capital,” he said.
“Together, we are turning Nigeria’s energy needs into investable opportunities and building a model that can scale across Africa.”
The World Bank is providing an initial $25 million contribution through the International Development Association, representing about 8.3 per cent of the targeted $300 million fund.
The Managing Director of Operations at the World Bank Group, Anna Bjerde, said the investment vehicle was designed to combine development finance with private capital to expand electricity access.
“Reliable and affordable energy is required for job creation and economic transformation in Africa, and the Nigeria DRE Platform contributes through a bold, collaborative approach needed to accelerate it,” Bjerde said.
She added that the World Bank’s “initial $25m IDA contribution reflects our commitment to bridging funding sources and delivering real connections to people and communities across the continent.”
The Chief Executive Officer of SEforALL and Special Representative of the United Nations Secretary-General for Sustainable Energy for All, Damilola Ogunbiyi, said the fund would support Nigeria’s electricity-access ambitions while contributing to Mission 300.
“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.
“By creating a dedicated financing mechanism to scale distributed renewable energy, Nigeria is demonstrating how country-led action can translate Mission 300’s ambition into concrete investment and connections.”
The Director General of the International Solar Alliance, Ashish Khanna, described the Nigerian initiative as the first country-level demonstration linked to a wider continental financing platform under Mission 300.
According to Khanna, the financing structure could help mobilise capital more efficiently, develop domestic renewable-energy markets and provide a template for other African countries.
“The Nigeria DRE Fund represents an important milestone in the Mission 300 platform for Africa energy access by building an ecosystem of investment platforms for private sector-led distributed renewable energy across Africa,” he said.
He added that the model and associated knowledge transfer between Africa and India could be replicated elsewhere on the continent to unlock investment at scale.
The partners said the fund was structured to use public and development financing to attract additional private-sector investment rather than rely solely on government resources.
The approach is expected to address one of the major constraints facing renewable-energy developers, particularly the difficulty of securing sufficient long-term financing for projects serving communities and businesses outside conventional electricity infrastructure.
The statement said the commercial launch provided “an important foundation for scaling distributed renewable energy solutions across the country” as Nigeria pursues its energy-transition and universal electricity-access targets.
It added that the investment vehicle was designed to expand beyond its initial deployment and provide a financing model that could be replicated in other African markets.
The NSIA, established under the Nigeria Sovereign Investment Authority Act of 2011, manages Nigeria’s sovereign wealth investments through the Stabilisation Fund, Future Generations Fund and Nigeria Infrastructure Fund.
Africa50 is an infrastructure investment platform backed by African governments and institutions, while SEforALL works with governments and other stakeholders to expand sustainable energy access.
