The Nigeria Sovereign Investment Authority (NSIA), in collaboration with Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA), and Africa50, has officially announced a strategic partnership to establish the $500 million Distributed Renewable Energy (DRE) Nigeria Fund. This initiative is aimed at developing and financing distributed renewable energy projects throughout Nigeria.
The primary objective of the DRE Nigeria Fund is to mobilize financing that will provide customized financial instruments and attract private sector investment. This is particularly crucial in addressing significant challenges that have historically hindered the growth of renewable energy in the region, such as currency volatility, complex tariff structures, and the scarcity of financing options in local currency.
The fund will focus on targeted investments in various renewable energy solutions, including mini-grids, solar home systems, commercial and industrial (C&I) power solutions, embedded generation projects, and energy storage technologies. By doing so, the DRE Nigeria Fund aims to enhance the reliability and affordability of power access for households and businesses across Nigeria. A key goal of the fund is to stimulate local currency funding from domestic sources, including pension funds, insurance companies, and other institutional investors, thereby fostering a more sustainable financial ecosystem for renewable energy projects.
Co-managed by Africa50 and NSIA, the DRE Nigeria Fund is envisioned as a pioneering model for similar country-specific funds that are expected to be launched under the broader DRE Africa Platform. This platform aims to replicate the success of the Nigeria fund across the continent, facilitating the growth of renewable energy initiatives in various African nations.
Aminu Umar-Sadiq, Managing Director and CEO of NSIA, emphasized the significance of this initiative, stating;
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.
Alain Ebobisse, CEO of Africa50, also highlighted the importance of this partnership, remarking;
This is a strong partnership with solid partners that 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 and driving economic growth for businesses and communities across the continent.
Through this partnership and the establishment of the DRE Nigeria Fund, stakeholders are optimistic about the potential to transform Nigeria’s energy landscape, making renewable energy more accessible and sustainable for all.
