Nigeria has introduced a $300m investment fund to support off-grid electricity and distributed renewable energy projects. The Nigeria Distributed Renewable Energy Fund was launched by the Nigeria Sovereign Investment Authority, Africa50, and Sustainable Energy for All on the sidelines of the United Nations General Assembly in New York. This fund aims to finance projects such as mini-grids and standalone solar systems for communities and businesses underserved by the national grid.
The fund is a collaboration between the Nigeria Sovereign Investment Authority and Africa50, with the goal of developing a pipeline of investable projects and attracting additional private-sector financing into Nigeria's renewable energy market. The initiative addresses Nigeria's persistent electricity supply and access challenges, where households and businesses rely on generators and alternative power sources to supplement grid electricity. The fund aligns with Nigeria's energy-access priorities and Mission 300, a continental initiative to connect 300 million people across Africa to electricity by 2030.
The commercial launch of the fund marks a significant step towards mobilizing capital for distributed renewable energy solutions. According to Aminu Umar-Sadiq, Managing Director and Chief Executive Officer of the Nigeria Sovereign Investment Authority, the launch demonstrates the growing investment potential of Nigeria's distributed renewable energy market. He stated that this development signals to markets, investors, governments, and development partners that Nigeria's distributed renewable energy market is investable, credible, and ready to operate at scale.
The World Bank is providing an initial $25m contribution to the fund through the International Development Association, representing about 8.3 per cent of the targeted $300m fund. Anna Bjerde, Managing Director of Operations at the World Bank Group, said the financing platform combines development finance with private capital to accelerate electricity access and support economic development. The fund is expected to support mini-grids, standalone solar systems, and other decentralised power projects as Nigeria seeks to narrow its electricity-access gap.
Damilola Ogunbiyi, Chief Executive Officer of Sustainable Energy for All and Special Representative of the United Nations Secretary-General for Sustainable Energy for All, stated that the commercial launch would support Nigeria's electricity-access objectives and the broader goals of Mission 300. The fund has been structured to use public and development financing to attract additional private-sector investment, rather than depend solely on government resources. This approach aims to address a major constraint confronting renewable-energy developers: access to sufficient long-term financing for projects.
The Nigeria Distributed Renewable Energy Fund represents the first country-level demonstration linked to a wider continental financing platform under Mission 300. Ashish Khanna, Director General of the International Solar Alliance, said the Nigerian initiative could help mobilise capital more efficiently, strengthen domestic renewable-energy markets, and provide a model that other African countries could adopt. The model, alongside knowledge transfer between Africa and India, could be replicated in other African markets to unlock investment at scale.
The partners believe that the fund has the potential to expand beyond its initial deployment and establish a financing model that could be replicated in other African markets. The investment vehicle is designed to support Nigeria's energy-transition and universal electricity-access targets. The commercial launch is seen as an important foundation for scaling distributed renewable energy solutions across the country. The Nigeria Sovereign Investment Authority, established under the Nigeria Sovereign Investment Authority Act of 2011, manages Nigeria's sovereign wealth.
Key points
- The fund aims to finance distributed energy projects including mini-grids, standalone solar systems and other decentralised power solutions.
- The World Bank is providing an initial $25m contribution to the fund.
- The fund is aligned with Nigeria's energy-access priorities and Mission 300.
