The Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA) and Africa50 have unveiled a $500m distributed renewable energy (DRE) Nigeria Fund.
The initiative was announced at the SEforALL Global Forum held in Bridgetown, Barbados, on 12 and 13 March 2025. It aims to develop and finance DRE projects in the country.
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The fund’s investments will focus on mini-grids, solar home systems, commercial and industrial power solutions, embedded generation projects and innovative energy storage technologies.
The fund aims to provide more reliable and affordable power for Nigerian homes and businesses.
NSIA MD and CEO Aminu Umar-Sadiq stated: “The DRE Africa Platform represents another major step in our commitment to unlocking Africa’s renewable energy potential. With the DRE Nigeria Fund, we are creating a scaleable model to attract global investments, drive industrial development and enhance energy access for millions of Nigerians and Africans.
“This initiative underscores our belief that sustainable infrastructure is critical to economic transformation, and we are proud to collaborate with SEforALL, ISA and Africa50 to turn this vision into reality.”
The DRE Nigeria Fund seeks to raise financing to provide tailored financial instruments and attract private sector capital.
It addresses challenges such as currency volatility, tariff structures and limited local currency financing options. One of the main aims of the fund is to encourage investment in local currency from pension funds, insurance companies and other local institutional investors.
Co-managed by Africa50 and NSIA, the DRE Nigeria Fund is designed to serve as a model for other country-specific funds across the continent under the DRE Africa Platform.
Africa50 CEO Alain Ebobisse stated: “This is a strong partnership with solid partners which can be a game-changer in accelerating investment in distributed renewable energy across Africa.
“This innovative collaboration aims to unlock the right financing instruments to fund projects at scale and help solve the energy access gap in Africa, bringing power to millions of Africans, driving economic growth for businesses and communities across the continent.”
The fund is expected to benefit from catalytic capital from the ISA through the recently announced Africa Solar Facility.
Its core value lies in mobilising institutional capital and fostering partnerships with the Nigerian government and private sector to scale renewable energy investments.
The plans for establishing the $500m fund were announced at the start of March 2025.
