Nigeria, in collaboration with a United Nations agency, has set a $500 million target for a fund designed to support local developers of renewable energy, with a focus on expanding access to solar power in rural areas.
According to Bloomberg, the initiative aims to boost renewable energy adoption through solar home systems and mini-grids, providing electricity to communities currently underserved by the national grid.
The fund is backed by the Nigerian Sovereign Investment Authority and the UN’s Sustainable Energy for All and will be managed by Africa50, an infrastructure investment platform established by the African Development Bank.
Chief Executive Officer of SEforALL, Damilola Ogunbiyi, highlighted that the fund would be accessible to local developers and available in local currency to encourage investment in Nigeria’s renewable energy sector. Speaking at a global development finance forum in Cape Town, South Africa, last weekend, Ogunbiyi emphasized the need for financial support for small-scale energy providers.
“The aim is to put together a fund that would be accessible and will be in local currency for local developers,” Ogunbiyi told Bloomberg.
The fund is part of the broader Mission 300 program, a joint initiative by the World Bank and the AfDB, which seeks to provide electricity to 300 million people across Africa by 2030. Countries that implement power sector reforms and adopt regulatory measures to attract private investment are expected to benefit from the program’s multibillion-dollar funding.
Additionally, Africa50 is launching a separate $200 million Africa Solar Facility, supported by the International Solar Alliance, to finance distributed renewable energy projects across the continent.
Mini-grids and solar home systems are regarded as key solutions to Nigeria’s ongoing electricity crisis, particularly in rural regions disconnected from the national grid.
With more than 86 million Nigerians currently lacking access to electricity, Nigeria remains one of the most energy-deprived countries globally. Across sub-Saharan Africa, over 570 million people live without electricity, representing more than 80% of the world’s population without power.
Meanwhile, Nairametrics reported that the AfDB and the World Bank Group have pledged $40 billion towards the Mission 300 initiative. The commitment was made during the Mission 300 Africa Energy Summit in January 2025 in Dar es Salaam, Tanzania.
Experts have stressed the urgent need for significant investment to close Nigeria’s electricity gap, which has long stifled economic growth and development. Renewable energy is expected to play a crucial role in securing the country’s energy future.
