By Rareview Energydesk
The Federal Government, through the Nigeria Sovereign Investment Authority (NSIA), has commercially launched a $300 million fund to accelerate investment in off-grid electricity and distributed renewable energy projects across Nigeria.
The Nigeria Distributed Renewable Energy (DRE) Fund, jointly managed by NSIA and Africa50, is designed to mobilise public, development and private capital for mini-grids, standalone solar systems and other decentralised power projects serving communities and businesses underserved by the national grid.
NSIA, Africa50 and Sustainable Energy for All (SEforALL) announced the commercial launch on the sidelines of the United Nations General Assembly, marking the transition of the fund from its structuring phase to active capital deployment.
The initiative comes as Nigeria continues to grapple with inadequate and unreliable electricity supply, leaving households and businesses heavily dependent on diesel and petrol generators and other alternative sources of power.
The fund is aligned with Nigeria’s electricity-access objectives and the Mission 300 initiative, which seeks to connect 300 million people across Africa to electricity by 2030.
NSIA Managing Director and Chief Executive Officer, Aminu Umar-Sadiq, described the launch as a signal that Nigeria’s distributed renewable energy market is ready to attract 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,” he said.
The fund will target projects that generate electricity close to where it is consumed, reducing reliance on large central power plants and the national transmission network.
Africa50 Group Chief Executive Officer, Alain Ebobissé, said the initiative combines NSIA’s knowledge of the Nigerian market with Africa50’s investment and fund-management capabilities and the energy-access expertise of SEforALL.
The World Bank is providing an initial $25 million through the International Development Association (IDA), representing about 8.3 per cent of the targeted fund size.
World Bank Group Managing Director of Operations, Anna Bjerde, said the contribution was intended to help bridge development and private financing and expand access to reliable and affordable electricity.
SEforALL CEO and UN Secretary-General’s Special Representative for Sustainable Energy for All, Damilola Ogunbiyi, said the fund would help translate Nigeria’s electricity-access ambitions into concrete investments and connections.
The International Solar Alliance also described the fund as an important country-level demonstration under the broader Mission 300 financing platform, with potential for the model to be replicated in other African markets.
The structure is intended to use public and development finance to crowd in private investment, addressing one of the major challenges confronting distributed renewable-energy developers: access to affordable, long-term capital.
For Nigeria, the significance of the fund will ultimately be measured not by the size of the financial commitment announced but by how quickly it translates into functioning mini-grids, solar systems, productive-use power and new electricity connections. If the fund succeeds in converting development finance into commercially sustainable projects, it could help reduce dependence on generators while creating a more investable framework for decentralised electricity across the country.