Nigeria DRE Fund reaches commercial launch milestone, sets model for Africa

The Nigeria Sovereign Investment Authority (NSIA), Africa50 and Sustainable Energy for All (SEforALL) have announced the commercial launch of the $300 million Nigeria Distributed Renewable Energy (DRE) Fund.

The deal which comes on the sidelines on UNGA, marks a decisive shift from structuring to active capital deployment.

The Fund is designed to scale distributed renewable energy solutions across Nigeria, while serving as a model for similar initiatives across Africa.

Strategically aligned with Nigeria’s national development priorities, the DRE Fund supports the country’s ambition to expand reliable, affordable and sustainable energy access. It also contributes to Mission 300, the continental drive to connect 300 million people to electricity by 2030.

“This is a major development milestone. It is a strategic signal to markets, investors, governments and development partners that Nigeria’s distributed renewable energy market is investable, credible and ready to operate at scale,” said Aminu Umar-Sadiq, Managing Director and Chief Executive Officer of NSIA.

The Fund’s operationalization comes at a critical moment, as distributed renewable energy solutions such as mini-grids and standalone solar systems are increasingly vital to closing energy access gaps, supporting productive economic activity and strengthening energy security.

Alain Ebobissé, Group Chief Executive Officer of Africa50, emphasized the strength of the partnership: “What sets the Nigeria DRE Fund apart is the strength of the partnership: NSIA’s local market expertise, Africa50’s pan-African investment and fund management capabilities, SEforALL’s energy-access leadership, and the World Bank’s catalytic capital. Together, we are turning Nigeria’s energy needs into investable opportunities and building a model that can scale across Africa.”

Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for SEforALL, highlighted the Fund’s role in advancing Mission 300: “The commercial launch of the Nigeria Distributed Renewable Energy Fund is a significant step towards delivering Nigeria’s electricity access ambitions. By creating a dedicated financing mechanism, Nigeria is demonstrating how country-led action can translate Mission 300’s ambition into concrete investment and connections.”

Ashish Khanna, Director General of the International Solar Alliance, described the Fund as a landmark financing model: “It shows how innovative financial structures can mobilize capital more efficiently, support local market development and accelerate progress towards universal energy access. We believe this model and its associated knowledge transfer between Africa and India can be replicated across African countries.”

Anna Bjerde, Managing Director of Operations at the World Bank Group, added: “Reliable and affordable energy is required for job creation and economic transformation in Africa, and the Nigeria DRE Platform contributes through a bold, collaborative approach. The World Bank is proud to be a founding partner, and our initial $25 million IDA contribution reflects our commitment to bridging funding sources and delivering real connections to people and communities.”

Co-managed by Africa50 and NSIA, the Nigeria DRE Fund is designed to scale, becoming a model for other countries and helping build the next generation of African distributed renewable energy champions.