Nigeria unveils $300m fund for off-grid power

The Federal Government of Nigeria, in collaboration with its development partners, has officially launched a $300 million investment fund dedicated to expanding off-grid electricity and distributed renewable energy projects throughout the country. The Nigeria Distributed Renewable Energy Fund, jointly managed by the Nigeria Sovereign Investment Authority (NSIA) and Africa50, aims to mobilize both public and private capital for mini-grids, standalone solar systems, and other decentralised electricity solutions, particularly in areas underserved by the national grid.

This development follows the persistent electricity supply deficit in Nigeria, which has forced millions of households and businesses to rely on generators and other alternative power sources. The fund represents a significant step towards mobilizing the necessary capital to expand off-grid and distributed renewable energy solutions, ultimately reaching communities and businesses currently lacking access to traditional energy infrastructure.

Aligned with Nigeria's energy-access objectives and Mission 300, an initiative aiming to provide electricity access to 300 million people across Africa by 2030, the fund is expected to support mini-grids, standalone solar systems, and other decentralized electricity projects. The partnership between NSIA, Africa50, and Sustainable Energy for All (SEforALL) strengthens the market readiness and investor confidence in Nigeria's distributed renewable energy sector.

The World Bank is contributing an initial $25 million through the International Development Association, representing about 8.3% of the targeted $300 million fund. This collaborative approach combines development finance with private capital to accelerate electricity access in Nigeria and contribute to Mission 300. The Nigeria Distributed Renewable Energy Fund demonstrates how country-led action can translate Mission 300's ambition into concrete investments and energy connections for Africa.