By Oluwakemi Kindness
Communities and businesses underserved by Nigeria’s traditional electricity infrastructure are set to benefit from a $300 million fund aimed at expanding distributed renewable energy across the country.
The Nigeria Distributed Renewable Energy (DRE) Fund reached commercial launch on Monday, moving from fund structuring to active capital deployment.
The fund was unveiled on the sidelines of the United Nations General Assembly by the Nigeria Sovereign Investment Authority (NSIA), Africa50 and Sustainable Energy for All (SEforALL).
It is designed to scale renewable energy solutions, including mini-grids and standalone solar systems, to help close electricity access gaps.
NSIA Managing Director and Chief Executive Officer, Aminu Umar-Sadiq, said the unveiling signals that Nigeria’s distributed renewable energy market is ready for investment at scale.
He said the fund would signal to investors, governments and development partners that the sector is “investable, credible and ready to operate at scale.”
The fund is also expected to support businesses and communities that lack reliable access to conventional electricity, while strengthening energy security and supporting economic activity.
The World Bank is a founding partner in the initiative and has committed an initial $25 million from its International Development Association (IDA) financing.
World Bank Managing Director of Operations, Anna Bjerde, said reliable and affordable energy is essential for job creation and economic transformation in Africa.
The fund is co-managed by Africa50 and NSIA and is designed to mobilise private capital for distributed renewable energy projects in Nigeria.
It also supports Mission 300, the initiative aimed at connecting 300 million people across Africa to electricity by 2030.
SEforALL CEO and UN Secretary-General’s Special Representative for Sustainable Energy for All, Damilola Ogunbiyi, said the fund would help translate the Mission 300 ambition into concrete investments and electricity connections.
The partners said the Nigeria DRE Fund could serve as a model for other African countries seeking to attract investment and expand electricity access through distributed renewable energy.
