Nigeria Secures $500M for Renewable Energy

March 16, 2025 • Estimated Reading Time: 2 minutes

Key Figures & Findings: The Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA), and Africa50 have launched a $500 million fund to accelerate distributed renewable energy (DRE) projects across Nigeria. The fund will support mini-grids, solar home systems, commercial and industrial (C&I) power solutions, embedded generation projects, and energy storage technologies. Co-managed by NSIA and Africa50, the fund aims to attract local and international investors, with a focus on overcoming challenges such as currency volatility and limited local financing. NSIA’s CEO, Aminu Umar-Sadiq, emphasized that the initiative is a scalable model to drive industrial growth and energy access across Nigeria.

Statistics & Insights: Nigeria currently has an electrification rate of about 55%, leaving nearly 90 million people without reliable power. Despite its vast renewable energy potential, the country receives less than 3% of global solar investments. The new fund aims to mobilize long-term capital from pension funds, insurance companies, and institutional investors to scale up clean energy projects.

Future Implications: If successful, the fund could serve as a model for similar country-specific initiatives across Africa, accelerating renewable energy adoption and bridging the continent’s energy access gap. The first wave of projects is expected to roll out in 2025, with potential expansion to other African countries under the DRE Africa Platform.