Nigeria Launches $300m Fund to Scale Distributed Renewable Energy

By Adedapo Adesanya

Nigeria’s $300 million Distributed Renewable Energy Fund has been commercially launched, moving from the structuring phase to capital deployment, the Nigeria Sovereign Investment Authority (NSIA) said on Monday.

The fund brings together public and private capital to finance distributed renewable energy projects and expand access to reliable electricity across Nigeria.

The commercial launch, announced on the sidelines of the 81st United Nations General Assembly in New York, marks a shift from developing the investment platform to deploying capital into projects capable of expanding electricity access, particularly through distributed renewable energy solutions.

The fund is being co-managed by the NSIA and Africa50, with Sustainable Energy for All providing energy-access leadership. The World Bank is a founding partner and has committed an initial $25m contribution through the International Development Association (IDA).

The initiative is aligned with Mission 300, the African development programme targeting electricity connections for 300 million people across the continent by 2030.

According to the partners, the Nigeria DRE Fund is intended to mobilise additional private investment into the country’s renewable energy market while addressing financing constraints that have limited the expansion of off-grid and distributed power solutions.

NSIA Managing Director and Chief Executive Officer, Mr Aminu Umar-Sadiq, said the commercial launch demonstrated that Nigeria’s distributed renewable energy market was ready to attract and deploy investment at scale.

Africa50 Group chief executive, Mr Alain Ebobissé, said the partnership combines local market knowledge, pan-African investment expertise, energy-access capabilities and catalytic capital to develop commercially viable opportunities in Nigeria’s energy sector.

Sustainable Energy for All Chief Executive Officer and Special Representative of the UN Secretary-General, Mr Damilola Ogunbiyi, said the fund would provide a dedicated financing mechanism to support Nigeria’s electricity access ambitions.

According to a statement, the International Solar Alliance described the initiative as the first country-level demonstration connected to a continental financing platform under Mission 300, with the model potentially applicable to other African markets.

The World Bank said reliable and affordable electricity remains critical to job creation and economic transformation, adding that its initial contribution would help address financing gaps and support new electricity connections.

The commercial launch comes as Nigeria continues to seek greater private-sector participation and investment in distributed renewable energy as part of efforts to improve electricity access, reduce dependence on conventional power infrastructure and support economic activity.

The partners said the fund is expected to demonstrate how public and private capital can be combined to scale renewable energy investments and create a financing model that can be replicated across Africa.