Nigeria, in collaboration with a United Nations agency, has set up a $500 million fund to support local renewable energy developers. This initiative aims to improve access to clean energy through solar home systems and mini-grids, particularly in rural communities with limited electricity.
Boosting Renewable Energy Investment
The fund, backed by the Nigerian Sovereign Investment Authority and the UN’s Sustainable Energy for All (SEforALL), will be managed by Africa50. Africa50 is an infrastructure investment platform established by the African Development Bank (AfDB) to accelerate development projects across the continent.
Damilola Ogunbiyi, CEO of SEforALL also emphasized that the fund would be accessible in local currency. This approach is designed to make financing easier for small-scale energy providers in Nigeria.
“The aim is to create a fund that local developers can access in local currency,” Ogunbiyi said in an interview with Bloomberg during a global development finance forum in Cape Town.
Part of the Mission 300 Program
This funding is part of Mission 300, a broader initiative led by the World Bank and the AfDB. The program aims to provide electricity to 300 million people across Africa by 2030. Countries that implement power sector reforms and introduce regulatory measures to attract private investment are expected to benefit from this initiative.
Additionally, Africa50 is launching a separate $200 million Africa Solar Facility. This initiative, backed by the International Solar Alliance, will support distributed renewable energy projects across Africa.
Addressing Nigeria’s Energy Crisis
Nigeria faces a significant electricity deficit, with over 86 million citizens lacking access to power. Mini-grids and solar home systems offer viable solutions, especially for remote communities disconnected from the national grid.
Across Sub-Saharan Africa, more than 570 million people live without electricity, making up over 80% of the world’s energy-deprived population.
Global Commitment to Energy Security
During the Mission 300 Africa Energy Summit in January 2025, held in Dar es Salaam, Tanzania, the AfDB and the World Bank Group pledged $40 billion towards Mission 300. Experts highlight that large-scale investment is critical for Nigeria to bridge its electricity gap, with renewable energy playing a key role in achieving long-term energy security and economic growth.
Conclusion
The $500 million fund represents a significant step toward Nigeria’s renewable energy goals. By prioritizing local developers and ensuring financing is available in local currency, the initiative is expected to accelerate the transition to clean energy and improve electricity access for millions.
Key Takeaways:
- Nigeria and the UN have launched a $500 million fund for local solar energy developers.
- The fund, managed by Africa50, will support mini-grids and solar home systems.
- It is part of Mission 300, which aims to provide electricity to 300 million Africans by 2030.
- Over 86 million Nigerians lack access to electricity, highlighting the need for renewable solutions.
- The AfDB and the World Bank pledged $40 billion to support Africa’s energy transition.
With strong backing and strategic implementation, this initiative has the potential to transform Nigeria’s energy sector and drive sustainable development.
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