NSIA, firms create $500m fund to finance renewable energy projects in Nigeria

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

According to a statement on Friday, NSIA, SEforALL, and Africa50 signed the fund’s heads of terms agreement at the SEforALL global forum in Barbados.

The 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.

“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,” the statement reads.

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

‘THE FUND WILL ATTRACT LONG-TERM CAPITAL TO EXPAND PROJECTS’

Speaking at the launch, Damilola Ogunbiyi, chief executive officer (CEO) of SEforALL, described the launch of the DRE Nigeria fund as a significant milestone in the ongoing efforts to tackle Africa’s energy access challenges.

“This fund will attract the long-term patient capital required to scale projects, especially from institutional investors,” Ogunbiyi said.

“With the Fund’s targeted focus on scaling up decentralized energy solutions, we are one step closer to achieving universal energy access across Nigeria.”

In his remarks, Aminu Umar-Sadiq, managing director and CEO of NSIA, emphasised the fund’s strategic role in Nigeria’s economic and industrial development.

“The DRE Africa platform represents another major step in our commitment to unlocking Africa’s renewable energy potential,” he said.

“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.”

Ashish Khanna, director general-elect of the International Solar Alliance, expressed his support for the initiative and commended the partners.

Khanna said attracting private investments and promoting catalytic finance through grants and equity are crucial for building a sustainable and energy-secure future in Africa.

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

Also speaking, Alain Ebobisse, Africa50 CEO, described the initiative as a strong partnership with “solid” partners that has the potential to transform 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,” Ebobisse said.

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.

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