Nigeria DRE Fund launches with $300m for renewable energy

The Nigeria Sovereign Investment Authority (NSIA), Africa50, and Sustainable Energy for All (SEforALL) have commercially launched the $300 million Nigeria Distributed Renewable Energy (DRE) Fund. Announced on the sidelines of the United Nations General Assembly, the fund marks a transition from its structuring phase to the active deployment of capital.

The investment vehicle is designed to expand electricity access by financing mini-grids, standalone solar systems, and other decentralized renewable energy solutions. These projects aim to serve communities and businesses currently underserved by the national power grid. The initiative aligns with Mission 300, a continental program targeting electricity connections for 300 million people across Africa by 2030.

To mitigate investment risks such as irregular household incomes and equipment costs in foreign currencies, the World Bank has provided an initial $25 million contribution through the International Development Association (IDA). The fund is jointly managed by NSIA and Africa50, leveraging local market expertise and pan-African investment capabilities.