The Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA), and Africa50 have launched a $500 million Distributed Renewable Energy (DRE) Nigeria Fund. This initiative aims to finance and develop renewable energy projects throughout Nigeria, with the Fund’s Heads of Terms agreement signed during the SEforALL Global Forum held in Barbados.
The DRE Nigeria Fund seeks to mobilize financing by providing customized financial solutions and attracting private sector investment. It will tackle significant challenges, including currency fluctuations, tariff issues, and the scarcity of local currency financing options.
Investments from the Fund will focus on a range of projects, such as mini-grids, solar home systems, commercial and industrial energy solutions, embedded generation projects, and advanced energy storage technologies. This initiative is designed to enhance reliable and affordable power access for households and businesses across Nigeria. A vital goal of the Fund is to encourage local currency investment from pension funds, insurance companies, and other domestic institutional investors.
Damilola Ogunbiyi, CEO and Special Representative of the Secretary-General for Sustainable Energy for All, expressed the significance of the DRE Nigeria Fund, stating, “This marks a pivotal moment in our collective efforts to address Africa’s energy access challenges. The Fund will attract the long-term capital necessary to scale projects, particularly from institutional investors. With a focus on decentralized energy solutions, we are moving closer to achieving universal energy access in Nigeria.”
Co-managed by Africa50 and NSIA, the DRE Nigeria Fund aims to serve as a model for similar country-specific funds across Africa, expected to be developed under the DRE Africa Platform.
Aminu Umar-Sadiq, Managing Director and CEO of NSIA, highlighted the Fund’s strategic importance, noting, “The DRE Africa Platform is a significant step towards unlocking Africa’s renewable energy potential. Through the DRE Nigeria Fund, we are creating a scalable model that attracts global investments, fosters industrial growth, and enhances energy access for millions. Sustainable infrastructure is vital for economic transformation, and we are committed to realizing this vision through collaboration with SEforALL, ISA, and Africa50.”
The DRE Nigeria Fund will also benefit from catalytic support from the International Solar Alliance via the recently launched Africa Solar Facility. Ashish Khanna, Director General-Elect of ISA, emphasized the importance of mobilizing private investments, stating, “Promoting catalytic finance through grants and equity is essential for a sustainable energy future in Africa, which currently receives a mere 3% of global solar investments. We will start with Nigeria and expand to other countries across the continent.”
Alain Ebobisse, CEO of Africa50, remarked on the partnership’s potential: “This collaboration aims to accelerate investment in distributed renewable energy across Africa. By unlocking effective financing instruments, we can address the energy access gap, providing power to millions and fostering economic growth across the continent. We look forward to welcoming more partners to this initiative.”
With the launch of the DRE Nigeria Fund, stakeholders are optimistic about advancing renewable energy solutions and improving energy access for countless Nigerians, ultimately driving economic development and sustainability in the region.
