NSIA, SEforALL, others launch $500m fund for renewable energy projects in Nigeria

The Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA), and Africa50 have launched a $500 million fund to develop and finance distributed renewable energy (DRE) projects in Nigeria.

In a statement seen by BusinessDay, NSIA, SEforALL, and Africa50 signed the Fund’s Heads of Terms agreement at the SEforALL Global Forum in Barbados.

The DRE Nigeria Fund aims to raise financing to offer tailored financial instruments and attract private sector capital while addressing critical challenges such as currency volatility, tariff structures, and the limited availability of local currency financing options.

The statement read: “Targeted investments will support mini-grids, solar home systems, commercial and industrial (C&I) power solutions, embedded generation projects, and innovative energy storage technologies. This will ensure more reliable and cost-effective power access for Nigerian homes and businesses.

“A key objective of the Nigeria DRE Fund is to catalyze local currency funding from pension funds, insurance companies, and other local institutional investors.”

Damilola Ogunbiyi, CEO and SRSG for Sustainable Energy for All, said the launch of the DRE Nigeria Fund marks a pivotal moment in our collective efforts to address Africa’s energy access challenges.

“This Fund will attract the long-term patient capital required to scale projects, especially from institutional investors. With the Fund’s targeted focus on scaling up decentralized energy solutions, we are one step closer to achieving universal energy access across Nigeria.”

The DRE Nigeria Fund, co-managed by Africa50 and NSIA, would serve as a model for other country-specific funds across the continent that are expected to be launched under the DRE Africa Platform.

In his remarks during the launch, Aminu Umar-Sadiq, MD & CEO, NSIA, emphasised the fund’s strategic importance: “The DRE Africa Platform represents another major step in our commitment to unlocking Africa’s renewable energy potential.

“With the DRE Nigeria Fund, we are creating a scalable model to attract global investments, drive industrial development, and enhance energy access for millions of Nigerians and Africans at large.

“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.”

The DRE Nigeria Fund is expected to benefit from catalytic capital from the International Solar Alliance through the recently announced Africa Solar Facility.

Ashish Khanna, Director General-Elect of the International Solar Alliance, said mobilizing private investments and promoting catalytic finance through grants and equity is the key to a sustainable, energy-secure future for the African region, which currently receives only 3 percent of global solar investments.

“We’ll begin with Nigerian homes and businesses and then take it to all countries of the continent.”

Also commenting, Alain Ebobisse, Africa50 CE,  said in his remarks: “This is a strong partnership with solid partners which can be a game-changer in accelerating investment in distributed renewable energy across Africa.

“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.”

He added that additional partners are expected to join the platform soon, highlighting the fund’s core mission of mobilising institutional capital and strengthening partnerships with the Nigerian government and private sector to expand renewable energy investments.

According to the statement, the DRE Nigeria fund is expected to benefit from catalytic capital from the International Solar Alliane through the recently announced Africa solar facility.