Nigeria has commercially launched a $300 million fund designed to accelerate investment in distributed renewable energy and expand electricity access to underserved communities and businesses across the country.
The Nigeria Distributed Renewable Energy (DRE) Fund was launched on the sidelines of the 81st United Nations General Assembly in New York, marking the transition of the initiative from its structuring phase to active capital deployment.
The fund is jointly managed by the Nigeria Sovereign Investment Authority (NSIA) and Africa50, with Sustainable Energy for All (SEforALL) and the World Bank among the key partners involved in the initiative.
It is expected to finance distributed energy projects, including mini-grids, standalone solar systems and other decentralised renewable energy solutions, particularly in locations where communities and businesses have limited or unreliable access to the national grid.
The World Bank has committed an initial $25 million to the fund through the International Development Association (IDA). The contribution represents about 8.3 per cent of the targeted $300 million fund size and is intended to help attract additional public and private investment.
NSIA Managing Director and Chief Executive Officer, Aminu Umar-Sadiq, described the commercial launch as an important milestone for Nigeria’s distributed renewable energy market, noting that the initiative would support investment at scale.
Africa50 Group Chief Executive Officer, Alain Ebobissé, said the partnership combines local market expertise with investment and fund-management capabilities, while SEforALL provides energy-access expertise and the World Bank contributes development financing.
The fund is also aligned with Mission 300, the continental initiative targeting electricity connections for 300 million people across Africa by 2030.
SEforALL Chief Executive Officer and UN Special Representative for Sustainable Energy for All, Damilola Ogunbiyi, said the initiative would contribute to Nigeria’s electricity-access objectives by creating a dedicated financing mechanism for distributed renewable energy.
The International Solar Alliance has described the Nigerian fund as a country-level demonstration linked to the wider Mission 300 financing framework, with the model potentially providing lessons for other African countries seeking to attract private investment into renewable energy.
The launch comes as Nigeria continues to seek greater investment in alternative electricity solutions, particularly in areas where expanding conventional grid infrastructure remains difficult.
Through mini-grids, standalone solar systems and other distributed renewable energy projects, the fund is expected to support electricity access for households, communities and businesses while creating opportunities for additional private-sector participation in Nigeria’s renewable energy market.
