The Nigeria Sovereign Investment Authority (NSIA), Africa50 and Sustainable Energy for All (SEforALL) have launched a $300 million Nigeria Distributed Renewable Energy (DRE) Fund to expand electricity access and attract investment into the country’s renewable energy sector.
The fund was commercially launched on the sidelines of the United Nations General Assembly in New York, marking the transition from its structuring phase to active deployment of capital.
The investment vehicle will support distributed renewable energy projects, including mini-grids, standalone solar systems and other decentralised electricity solutions, particularly in communities and businesses that remain underserved by conventional power infrastructure.
The initiative is also aligned with Mission 300, the continental programme aimed at connecting 300 million people across Africa to electricity by 2030.
Aminu Umar-Sadiq, Managing Director and Chief Executive Officer of NSIA, said the launch demonstrates that Nigeria’s distributed renewable energy market is ready for 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 is jointly managed by NSIA and Africa50, while SEforALL contributes its expertise in expanding energy access. The World Bank is also a partner in the initiative and has committed an initial $25 million through the International Development Association (IDA).
Alain Ebobissé, Group Chief Executive Officer of Africa50, said the partnership brings together different areas of expertise to create investment opportunities in Nigeria’s energy market.
“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. Together, we are turning Nigeria’s energy needs into investable opportunities and building a model that can scale across Africa,” he said.
The World Bank’s initial $25 million contribution represents about 8.3 percent of the targeted fund size and is intended to help combine development financing with additional public and private capital.
World Bank Managing Director of Operations, Anna Bjerde, said reliable and affordable electricity remains important to economic development across the continent.
“Reliable and affordable energy is required for job creation and economic transformation in Africa, and the Nigeria DRE Platform contributes through a bold, collaborative approach needed to accelerate it,” Bjerde said.
She added that the World Bank’s “initial $25m IDA contribution reflects our commitment to bridging funding sources and delivering real connections to people and communities across the continent.”
Damilola Ogunbiyi, Chief Executive Officer of SEforALL and Special Representative of the UN Secretary-General for Sustainable Energy for All, said the fund would support Nigeria’s electricity-access goals while contributing to the wider Mission 300 target.
“The commercial launch of the Nigeria Distributed Renewable Energy Fund is a significant step towards delivering Nigeria’s electricity access ambitions and advancing the objectives of Mission 300,” Ogunbiyi said.
“By creating a dedicated financing mechanism to scale distributed renewable energy, Nigeria is demonstrating how country-led action can translate Mission 300’s ambition into concrete investment and connections.”
The Director General of the International Solar Alliance, Ashish Khanna, described the initiative as the first country-level demonstration connected to a broader continental financing platform under Mission 300.
The fund is expected to help mobilise additional private capital for distributed renewable energy projects, while supporting the expansion of electricity access in locations where conventional grid infrastructure is limited or difficult to extend.
SEforALL said the Nigerian platform could also provide a model for other African countries seeking to develop financing structures capable of attracting private investment into distributed renewable energy.
With commercial operations now underway, the Nigeria DRE Fund is expected to move into active investment, supporting projects that can expand access to reliable and sustainable electricity while strengthening Nigeria’s renewable energy market.
