NSIA unveils $300m Renewable Energy Fund

The Nigeria Sovereign Investment Authority, (NSIA) has launched the $300 million Nigeria Distributed Renewable Energy (DRE) Fund, a new investment vehicle designed to accelerate private-sector investment in renewable energy and expand electricity access to underserved communities and businesses across the country.

The Fund, which reached its commercial launch milestone on the sidelines of the United Nations General Assembly in New York, marks the transition from fund structuring to active capital deployment in Nigeria’s distributed renewable energy sector, according to a statement by the organisation yesterday.

The initiative is being implemented through a partnership involving the NSIA; Africa50; Sustainable Energy for All, SEforALL; and the World Bank, with the International Solar Alliance also supporting the broader continental vision.

Speaking on the launch, Managing Director and Chief Executive Officer of NSIA, Aminu Umar-Sadiq, described the milestone as a strategic signal to investors and development partners that Nigeria’s distributed renewable energy market was ready for investment at scale.

Umar-Sadiq was quoted as saying, “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.”

According to him, the commercial launch would help move the sector from fund structuring into actual deployment of capital for renewable energy projects across the country.

Chief Executive Officer of Africa50, Alain Ebobissé, said the strength of the partnership behind the Fund was one of its major advantages, combining NSIA’s knowledge of the Nigerian market with Africa50’s pan-African investment and fund-management capabilities.

He said SEforALL brought energy-access expertise to the platform, while the World Bank provided global energy-sector leadership and catalytic capital.

Also speaking, SEforALL Chief Executive Officer and Special Representative of the UN Secretary-General for Sustainable Energy for All, Damilola Ogunbiyi, said the commercial launch represented an important step towards achieving Nigeria’s electricity-access ambitions and advancing Mission 300.

She said the creation of a dedicated financing mechanism for distributed renewable energy demonstrated how country-led initiatives could translate the continental electricity-access ambition into concrete investments and electricity connections.

Director General of the International Solar Alliance, Ashish Khanna, described the Fund as a landmark initiative within the Mission 300 platform, particularly because of its potential to demonstrate how innovative financing structures could mobilise private capital for distributed renewable energy.

Managing Director of Operations, World Bank Group, Anna Bjerde, said reliable and affordable electricity was critical to job creation and economic transformation across Africa.