The Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA), and Africa50 have launched a $500 million fund to develop and finance distributed renewable energy (DRE) projects in Nigeria.
Objective of the Fund
The DRE Nigeria Fund aims to raise financing through tailored financial instruments to attract private sector capital. It seeks to address key challenges such as:
- Currency volatility
- Tariff structures
- Limited availability of local currency financing
According to a statement seen by BusinessDay, the fund will support mini-grids, solar home systems, commercial and industrial (C&I) power solutions, embedded generation projects, and innovative energy storage technologies.
A key objective is to mobilize local currency funding from pension funds, insurance companies, and other institutional investors to drive the growth of Nigeria’s renewable energy sector.
Strategic Significance
Damilola Ogunbiyi, CEO of SEforALL, described the launch as a pivotal moment in addressing Africa’s energy access challenges.
“This fund will attract the long-term patient capital required to scale projects, especially from institutional investors. With its focus on decentralized energy solutions, we are one step closer to achieving universal energy access across Nigeria.”
Aminu Umar-Sadiq, MD & CEO of NSIA, emphasized the fund’s potential impact:
“The DRE Africa Platform is a major step in unlocking Africa’s renewable energy potential. With the DRE Nigeria Fund, we are creating a scalable model to attract global investments, drive industrial development, and enhance energy access for millions.”
A Model for Africa’s Renewable Energy Expansion
Co-managed by NSIA and Africa50, the fund will serve as a model for other country-specific renewable energy funds under the DRE Africa Platform.
Ashish Khanna, Director General-Elect of ISA, stressed the importance of mobilizing private investments and catalytic financing, noting that Africa receives only 3% of global solar investments.
“We’ll begin with Nigerian homes and businesses and then expand to the rest of the continent.”
Alain Ebobisse, CEO of Africa50, echoed this sentiment:
“This strong partnership will accelerate investment in distributed renewable energy across Africa. It will help close the energy access gap, bringing power to millions and driving economic growth.”
Future Prospects
The DRE Nigeria Fund is expected to benefit from catalytic capital from the International Solar Alliance’s recently announced Africa Solar Facility.
Additional partners are expected to join the platform, further strengthening collaboration between the Nigerian government, private sector, and institutional investors to expand renewable energy investments across Africa.
