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The Nigeria Distributed Renewable Energy Fund will mobilise public and private capital for mini-grids, standalone solar systems and other decentralised energy projects.
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NSIA and Africa50 will jointly manage the fund, with the World Bank providing an initial $25m contribution through the International Development Association.
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The financing platform is designed to expand electricity access for underserved communities and businesses while supporting Nigeria’s Mission 300 targets.
September 22, (THEWILL) – The Federal Government has commercially launched a $300m investment fund designed to attract public and private capital into off-grid electricity and distributed renewable energy projects across the country.
The Nigeria Distributed Renewable Energy Fund, jointly managed by the Nigeria Sovereign Investment Authority and Africa50, will finance projects including mini-grids, standalone solar systems and other decentralised energy solutions, particularly in communities and businesses underserved by the national grid.
The Nigeria Sovereign Investment Authority, 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.
The launch marks the transition of the fund from its structuring phase to active capital deployment and creates a dedicated financing platform for Nigeria’s distributed renewable energy market.
World Bank provides initial $25m
The World Bank is providing an initial $25m contribution through the International Development Association, representing about 8.3 per cent of the fund’s $300m target.
Anna Bjerde, Managing Director of Operations at the World Bank Group, said the investment vehicle would 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 said the initial IDA contribution was intended to help bridge funding sources and support electricity connections for communities.
The fund is aligned with Nigeria’s energy-access objectives and Mission 300, the initiative targeting electricity access for 300 million people across Africa by 2030.
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Fund targets underserved market
The initiative comes as households and businesses across Nigeria continue to depend on generators and other alternative power sources because of limitations in conventional electricity supply.
Distributed renewable energy systems generate electricity closer to where it is consumed, reducing reliance on large central power plants and the national transmission network.
Aminu Umar-Sadiq, Managing Director and Chief Executive Officer of the NSIA, said the commercial launch was a signal to investors that Nigeria’s distributed renewable energy market could support investment at scale.
“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.
Alain Ebobissé, Group Chief Executive Officer of Africa50, said the partnership combined NSIA’s domestic market knowledge with Africa50’s investment and fund-management capabilities, alongside the energy-access expertise of SEforALL and the World Bank’s development financing.
Beyond Nigeria
The partners said the fund was structured to use public and development financing to attract additional private-sector investment rather than depend solely on government funding.
The model is also intended to address the difficulty renewable-energy developers face in securing long-term financing for projects serving communities and businesses outside conventional electricity infrastructure.
Damilola Ogunbiyi, Chief Executive Officer of Sustainable Energy for All and Special Representative of the United Nations Secretary-General for Sustainable Energy for All, said the fund would support Nigeria’s electricity-access ambitions while advancing Mission 300.
Ashish Khanna, Director General of the International Solar Alliance, described the initiative as the first country-level demonstration linked to a wider continental financing platform under Mission 300.
He said the financing structure could help mobilise capital, develop domestic renewable-energy markets and provide a model that could be replicated in other African countries.
The partners said the investment vehicle is designed to grow beyond its initial deployment and create a financing model capable of supporting distributed renewable energy investment across Nigeria and potentially other African markets.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
