The Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA), and Africa50 have launched a $500mn Distributed Renewable Energy (DRE) Nigeria Fund to accelerate renewable energy projects across the country.

The initiative aims to attract private sector investment and introduce financial instruments to address challenges such as currency volatility, tariff structures, and restricted access to local financing.

The fund will focus on mini-grids, solar home systems, commercial and industrial power solutions, embedded generation projects, and energy storage technologies, with the goal of expanding energy access for Nigerian households and businesses. NSIA and Africa50 will co-manage the fund as part of the broader DRE Africa Platform, a model designed for replication in other countries.

NSIA Chief Executive Officer Aminu Umar-Sadiq described the fund as a key step in unlocking Africa’s renewable energy potential, driving industrial development, and attracting global investment.

"This initiative underscores our belief that sustainable infrastructure is critical to economic transformation, and we are proud to collaborate with SEforALL, ISA, and Africa50 to turn this vision into reality," he said.

SEforALL Chief Executive Officer Damilola Ogunbiyi called the launch a "pivotal moment" in addressing Africa’s energy challenges. ISA, through its Africa Solar Facility, is expected to provide catalytic capital to support the fund’s objectives.

Africa50 Chief Executive Officer Alain Ebobisse stated that the partnership represents a transformative model for scaling up renewable energy investment across Africa. He highlighted that the continent currently accounts for only 3% of global solar investments, underscoring the need for initiatives like the DRE Nigeria Fund.

"This innovative collaboration aims to unlock the right financing instruments to fund projects at scale and help solve the energy access gap in Africa, bringing power to millions of Africans, driving economic growth for businesses and communities across the continent," Ebobisse said.