LAGOS, Nigeria: Nigeria has launched a $300 million investment fund to expand off grid electricity and distributed renewable energy projects, as the country seeks to improve power access for households and businesses that remain underserved by the national grid.
The Nigeria Distributed Renewable Energy Fund was commercially launched by the Nigeria Sovereign Investment Authority (NSIA), Africa50 and Sustainable Energy for All (SEforALL) on the sidelines of the United Nations General Assembly.
The fund is jointly managed by NSIA and Africa50 and is designed to attract public and private investment into mini grids, standalone solar systems and other decentralised renewable energy projects across Nigeria.
The commercial launch marks the transition of the fund from its structuring phase to active capital deployment, creating a dedicated financing platform for Nigeria’s distributed renewable energy market.
The initiative comes as millions of Nigerian households and businesses continue to depend on generators and other alternative power sources because of persistent electricity supply challenges.
According to the partners, the fund is aligned with Nigeria’s energy access objectives as well as Mission 300, the continental initiative seeking to connect 300 million people across Africa to electricity by 2030.
“The commercial launch signals growing market readiness and investor confidence in Nigeria’s distributed renewable energy sector.
“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 systems generate electricity close to where it is consumed, reducing reliance on large central power plants and the national transmission network.
NSIA Managing Director and Chief Executive Officer Aminu Umar Sadiq said the launch sends a message to investors that Nigeria’s renewable energy sector is ready for larger scale investment.
“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 finance projects including mini grids and standalone solar systems as Nigeria works to expand electricity access while increasing the role of cleaner energy sources in its power mix.
Africa50 Group Chief Executive Officer Alain Ebobissé said the initiative combines Nigerian market knowledge with international investment and development expertise.
“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 through the International Development Association, representing about 8.3 per cent of the fund’s targeted $300 million capital base.
World Bank Group Managing Director of Operations Anna Bjerde said the financing structure was intended to combine development funding with private investment to increase access to electricity.
“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.”
SEforALL Chief Executive Officer and Special Representative of the United Nations Secretary General for Sustainable Energy for All, Damilola Ogunbiyi, said the fund would contribute to Nigeria’s electricity access plans while supporting the wider Mission 300 programme.
“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.”
International Solar Alliance Director General Ashish Khanna described the Nigerian initiative as the first country level demonstration connected to a broader continental financing platform under Mission 300.
He said the structure could help attract capital more efficiently, strengthen domestic renewable energy markets and offer a model that could be adapted by 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,” Khanna said.
He said the model, together with knowledge transfer between Africa and India, could be replicated elsewhere on the continent to support investment at scale.
The partners said the fund would use public and development finance to attract additional private sector capital rather than depend entirely on government funding.
The approach is intended to address a major challenge facing renewable energy developers, particularly the difficulty of obtaining sufficient long term financing for projects serving communities and businesses outside conventional electricity infrastructure.
The partners said the commercial launch provides “an important foundation for scaling distributed renewable energy solutions across the country” as Nigeria pursues its energy transition and universal electricity access targets.
The investment vehicle is also designed to expand beyond its initial deployment and provide a financing structure that could eventually be adapted for other African markets.
The Nigeria Sovereign Investment Authority was established under the Nigeria Sovereign Investment Authority Act of 2011 and manages the country’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 access to sustainable energy.
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