The four organizations have partnered to create the $500 million Distributed Renewable Energy (DRE) Nigeria Fund.

The goal of the fund is to support the development and financing of small-scale renewable energy projects across the country.

It aims to attract private sector investment and provide flexible financing solutions that address key barriers in the renewable energy sector.

These include challenges such as exchange rate risks, complex electricity tariffs, and limited local financing options.

The fund will invest in different clean energy solutions, including mini-grids, solar home systems, energy solutions for businesses, small-scale power generation projects, and energy storage technologies.

The aim is to improve power supply for both households and businesses in Nigeria.

Another major focus of the fund is to encourage investment in local currency.

It seeks to involve local institutions like pension funds and insurance companies to build a more stable and long-term financial base for renewable energy projects.

NSIA and Africa50 will jointly manage the fund. It is also expected to serve as a model for similar funds in other African countries under the broader DRE Africa Platform. This platform will help expand renewable energy efforts across the continent.

Speaking on the initiative, NSIA Managing Director and CEO Aminu Umar-Sadiq said the project reflects their commitment to increasing clean energy access in Africa.

He said the fund will help attract global investment, support industrial development, and provide power to millions of people.

Africa50 CEO Alain Ebobisse also described the partnership as a major opportunity.

He said the fund could help close the energy gap in Africa and support economic growth in local communities.

Stakeholders believe the DRE Nigeria Fund has the potential to transform Nigeria’s energy sector by making clean, affordable, and reliable power more accessible.