Nigeria DRE Fund Begins Capital Deployment for Renewable Energy

The Nigeria Distributed Renewable Energy (DRE) Fund, a $300 million investment vehicle, has reached a commercial milestone, signalling the commencement of active capital deployment to scale renewable energy solutions across Nigeria.

The Nigeria Sovereign Investment Authority (NSIA), Africa50, and Sustainable Energy for All (SEforALL) unveiled the fund's progress on the sidelines of the United Nations General Assembly, according to a statement issued by Joyce Onyegbula, Head of Corporate Communications at NSIA, in Abuja on Monday.

Supporting Nigeria's Electricity Access Goals

According to Onyegbula, the fund is designed to support Nigeria's efforts to expand reliable, affordable, and sustainable electricity access, while also contributing to Mission 300 — an initiative aimed at connecting 300 million people across Africa to electricity by 2030. "The commercial launch signals growing market readiness and investor confidence in Nigeria's distributed renewable energy sector," she said.

She explained that the fund represents an important step toward mobilising the scale of capital required to expand off-grid and distributed renewable energy solutions to underserved communities and businesses, noting that its operationalisation comes at a critical moment for Nigeria and the wider African continent. "Distributed renewable energy solutions, including mini-grids and standalone solar systems, have an increasingly important role to play in closing energy access gaps, supporting economic activities and strengthening energy security," she said.

"A Major Development Milestone" — NSIA Chief

Aminu Umar-Sadiq, Managing Director/Chief Executive Officer of NSIA, described the development as a major milestone for Nigeria's renewable energy sector. "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," he said.

Strength of Partnership Behind the Fund

Alain Ebobissé, Group Chief Executive Officer of Africa50, said the strength of the partnership behind the fund is central to its potential impact. "What sets the Nigeria DRE Fund apart is the strength of the partnership. It involves NSIA's local market expertise, Africa50's pan-African investment and fund management capabilities, SEforALL's energy-access leadership, and the World Bank's global energy thought leadership and catalytic capital," he said, adding that the partners are working to turn Nigeria's energy needs into investable opportunities while developing a model that could be scaled across Africa.

Damilola Ogunbiyi, Chief Executive Officer and Special Representative of the UN Secretary-General for SEforALL, said the fund would support both Nigeria's electricity access ambitions and the broader objectives of Mission 300. "By creating a dedicated financing mechanism to scale distributed renewable energy, Nigeria is demonstrating how country-led action can translate Mission 300's ambition into concrete investment and connections," she said.

A Model for Broader African Investment

Ashish Khanna, Director-General of the International Solar Alliance, said the fund represents an important milestone in efforts to develop investment platforms for private sector-led distributed renewable energy across Africa. He said the Nigeria initiative could demonstrate how innovative financial structures can mobilise capital, support local market development, and accelerate progress toward universal energy access, adding that the model — along with associated knowledge transfer between Africa and India — could be replicated in other African countries to help unlock investment at scale.

Anna Bjerde, Managing Director of Operations at the World Bank Group, said reliable and affordable energy is essential for job creation and economic transformation across Africa. She confirmed that the World Bank is a founding partner of the initiative, noting that its initial $25 million contribution from the International Development Association (IDA) reflects its commitment to expanding energy access. She said the contribution would help bridge funding sources and deliver electricity connections to communities across the continent.

The Nigeria DRE Fund is co-managed by Africa50 and NSIA, and is designed to scale into a model for other countries while helping build the next generation of African DRE champions.