Nigeria unveils $300m fund for off-grid power

The Federal Government of Nigeria, alongside its development partners, has officially launched a $300 million investment fund targeting the expansion of off-grid electricity and renewable energy projects throughout the country. The Nigeria Distributed Renewable Energy Fund, jointly overseen by the Nigeria Sovereign Investment Authority (NSIA) and Africa50, aims to attract both public and private capital for mini-grids, standalone solar systems, and other decentralized electricity initiatives, particularly benefiting communities and businesses with limited access to the national grid.

The fund's commercial launch, announced during the United Nations General Assembly, marks a significant shift from its structuring phase to active capital deployment. It will serve as a dedicated financing platform for investments in Nigeria's distributed renewable energy market, aligning with Nigeria's energy-access objectives and Mission 300, an initiative aiming to provide electricity access to 300 million people across Africa by 2030.

According to the NSIA, the fund underscores the growing market readiness and investor confidence in Nigeria's distributed renewable energy sector. The Managing Director and CEO of NSIA, Aminu Umar-Sadiq, emphasized that the launch signals Nigeria's renewable energy market as an attractive, credible, and scalable investment opportunity.

Africa50's Group CEO, Alain Ebobissé, noted that the fund combines local expertise with international development financing, highlighting the collaboration between NSIA, Africa50, SEforALL, and the World Bank. The World Bank's initial $25 million contribution, provided through the International Development Association, represents about 8.3% of the targeted $300 million fund.

Damilola Ogunbiyi, CEO of SEforALL and UN Special Representative for Sustainable Energy for All, stated that the fund supports Nigeria's electricity-access goals while contributing to Mission 300. The International Solar Alliance's Director General, Ashish Khanna, highlighted the fund as a country-level demonstration of a broader continental financing platform, potentially serving as a model for other African nations.