Nigeria Launches $500mn Fund for Renewable Energy Projects
By Patience Ikpeme
The Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA), and Africa50 have announced a partnership to establish a US$500 million Distributed Renewable Energy (DRE) Nigeria Fund. This initiative aims to develop and finance DRE projects across Nigeria.
NSIA, SEforALL, and Africa50 signed the Fund’s Heads of Terms agreement at the SEforALL Global Forum in Barbados.
The DRE Nigeria Fund seeks to raise financing to provide tailored financial instruments and attract private sector capital. It will address challenges such as currency volatility, tariff structures, and the limited availability of local currency financing.
Investments will target mini-grids, solar home systems, commercial and industrial (C&I) power solutions, embedded generation projects, and energy storage technologies. This will improve reliable and cost-effective power access for Nigerian homes and businesses. A key goal of the fund is to encourage local currency funding from pension funds, insurance companies, and other institutional investors.
Damilola Ogunbiyi, CEO and SRSG for Sustainable Energy for All, said, “The launch of the DRE Nigeria Fund marks a pivotal moment in our efforts to address Africa’s energy access challenges. This Fund will attract the capital needed to scale projects, especially from institutional investors. With its focus on decentralized energy solutions, we are closer to achieving universal energy access across Nigeria.”
The DRE Nigeria Fund, co-managed by Africa50 and NSIA, will serve as a model for other country-specific funds across Africa, launched under the DRE Africa Platform.
Aminu Umar-Sadiq, MD and CEO of NSIA, stated, “With the DRE Nigeria Fund, we are creating a model to attract global investments, drive industrial development, and improve energy access for millions of Nigerians and Africans. This initiative shows our belief that sustainable infrastructure is crucial for economic transformation, and we are proud to collaborate with SEforALL, ISA, and Africa50.”
The DRE Nigeria Fund will benefit from catalytic capital from the International Solar Alliance, through the Africa Solar Facility.
Ashish Khanna, Director General-Elect of the International Solar Alliance, said, “Mobilizing private investments and promoting catalytic finance is key to a sustainable, energy-secure future for Africa. We’ll begin with Nigerian homes and businesses and then extend it to other countries.”
Alain Ebobisse, Africa50 CEO, said, “This partnership can be a game-changer in accelerating investment in distributed renewable energy across Africa. This collaboration aims to unlock financing to fund projects and help solve the energy access gap, bringing power to millions and driving economic growth.” He added, “We look forward to welcoming more partners to the platform.”
The Fund aims to mobilize institutional capital and build partnerships with the Nigerian government and private sector to scale renewable energy investments.
