Nigeria has launched a $300 million distributed renewable energy (DRE) fund to scale mini-grids, standalone solar systems and other off-grid renewable energy projects across the country.
The fund, jointly managed by the Nigeria Sovereign Investment Authority (NSIA) and Africa50, was launched on the sidelines of the 81st United Nations General Assembly (UNGA) in New York.
It will be supported by the Sustainable Energy for All (SEforALL), the World Bank and International Solar Alliance supporting the initiative.
The World Bank provided an initial $25 million international development association (IDA) contribution to the fund.
The fund is designed to expand reliable, affordable and sustainable electricity access, particularly for communities and businesses underserved by traditional grid infrastructure. It also supports Mission 300, which seeks to connect 300 million people across Africa to electricity by 2030.
Aminu Umar-Sadiq, NSIA managing director and CEO, said the launch was a majordevelopment 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,” Umar-Sadiq added.
A statement issued by Africa50 said the fund’s operationalisation comes at a critical moment for Nigeria and the wider African continent as renewable energy solutions have an increasingly important role to play in closing energy access gaps, supporting productive economic activity and strengthening energy security.
“What sets the Nigeria DRE Fund apart is the strength of the partnership: NSIA’s local market expertise, Africa50’s pan-African investment and fund management capabilities, SEforALL’s energy-access leadership, and the World Bank’s global energy thought leadership and catalytic capital,” Alain Ebobissé, Group CEO of Africa50, said.
“Together, we are turning Nigeria’s energy needs into investable opportunities and building a model that can scale across Africa.”
Damilola Ogunbiyi. SEforALL CEO, said the financing mechanism would help translate Mission 300’s electricity access ambitions into investments and connections.
