The 300-million-dollar Nigeria Distributed Renewable Energy, DRE, Fund has commenced commercial operations, marking the start of capital deployment into renewable energy projects aimed at expanding electricity access across the country.
The investment vehicle was formally launched on the sidelines of the United Nations General Assembly by the Nigeria Sovereign Investment Authority, NSIA, Africa50 and Sustainable Energy for All, SEforALL.
The fund is expected to finance distributed renewable energy projects, including mini-grids and standalone solar systems, targeting communities and businesses that remain underserved by conventional electricity infrastructure.
NSIA Managing Director and Chief Executive Officer, Aminu Umar-Sadiq, said the commercial launch demonstrates that Nigeria’s distributed renewable energy market is ready to attract and deploy capital at scale
He said the development sends a signal to investors, governments and development partners that the sector is becoming an investable market.
The fund is also linked to Mission 300, the continental initiative aimed at connecting 300 million people across Africa to electricity by 2030.
Africa50 Group Chief Executive Officer, Alain Ebobissé, said the fund brings together local expertise, pan-African investment capacity and international development support to create investable opportunities in Nigeria’s energy sector.
The fund is co-managed by NSIA and Africa50, while SEforALL provides energy-access leadership and the World Bank serves as a founding partner.
The World Bank has committed an initial 25 million dollars from its International Development Association, IDA, resources to the platform.
World Bank Managing Director of Operations, Anna Bjerde, said the initiative would help combine development finance with private capital to expand electricity connections and support economic activity.
SEforALL Chief Executive Officer and Special Representative of the UN Secretary-General for Sustainable Energy for All, Damilola Ogunbiyi, said the launch would help translate Mission 300’s electricity-access target into investments and actual connections.
The International Solar Alliance also described the fund as a potential model for other African countries seeking to mobilise private investment for distributed renewable energy.
Its Director General, Ashish Khanna, said the Nigerian platform could support knowledge transfer between Africa and India and provide a framework that could be replicated across the continent.
The launch comes as Nigeria seeks to increase electricity access while reducing reliance on traditional grid infrastructure, particularly in areas where extending the national grid remains difficult or costly.
With commercial operations now underway, the Nigeria DRE Fund is expected to move from fund structuring to active investment in distributed renewable energy projects, with the broader objective of attracting additional private capital into Nigeria’s clean-energy market
