FG, partners launch $300m fund to expand off-grid electricity across Nigeria

The Federal Government and its development partners have launched a $300 million investment fund aimed at expanding off-grid electricity and distributed renewable energy projects across Nigeria. Known as the Nigeria Distributed Renewable Energy Fund, it is co-managed by the Nigeria Sovereign Investment Authority and Africa50. The primary focus of the fund is to attract public and private capital into initiatives such as mini-grids, standalone solar systems, and other decentralized power solutions.

The fund targets communities and businesses that are inadequately served by the national electricity grid. The Nigeria Sovereign Investment Authority, Africa50, and Sustainable Energy for All announced the commercial launch of the fund during the United Nations General Assembly, marking a transition from the development and structuring phase to active capital deployment.

The initiative aims to provide a dedicated financing platform for Nigeria's distributed renewable energy market at a time when unreliable electricity supply is pushing households and businesses towards generators and alternative power sources. The fund aligns with Nigeria's electricity-access objectives and Mission 300, which targets electricity connections for 300 million people across Africa by 2030.

The launch reflects growing investor interest in Nigeria's distributed renewable energy sector, signaling market readiness and investor confidence. The fund is expected to finance various projects, including mini-grids and standalone solar systems, as Nigeria seeks to improve electricity access while increasing cleaner energy in its power mix.

The World Bank is contributing an initial $25 million through the International Development Association, representing about 8.3% of the fund's $300 million target.