The Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA) and Africa50 have announced an innovative partnership for a $500m (N772.3bn) Nigeria Fund to develop and finance distributed renewable energy (DRE) projects in Nigeria.

In a statement, it said the aim of the DRE Nigeria Fund is 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.

It said the targeted investments would support mini-grids, solar home systems, commercial and industrial (C&I) power solutions, embedded generation projects, and innovative energy storage technologies to ensure more reliable and cost-effective power access for Nigerian homes and businesses.

Speaking during the signing of agreement at the SEforALL Global Forum in Barbados, the CEO and SRSG for Sustainable Energy for All, Damilola Ogunbiyi, said the launch of the DRE Nigeria Fund “Marks a pivotal moment in our collective efforts to address Africa’s energy access challenges.”

He said the fund would attract the long-term patient capital required to scale projects, especially from institutional investors.

“With the Fund’s targeted focus on scaling up decentralised 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.”

The MD & CEO of NSIA, Aminu Umar-Sadiq, noted that the fund’s strategic importance represents another major step to unlock Africa’s renewable energy potential.