Nigeria, in partnership with a United Nations agency, has established a $500m target to finance the roll-out of distributed renewable energy solutions such as solar home systems and mini-grids, as reported by Bloomberg.
The fund, backed by the Nigerian Sovereign Investment Authority and the UN’s Sustainable Energy for All (SEforALL), will be managed by Africa50, an infrastructure investment platform founded by the African Development Bank (AfDB).
Go deeper with GlobalData
Nigerian pension funds are also expected to invest in the initiative, SEforALL’s CEO Damilola Ogunbiyi told the publication.
She emphasised that the aim is to put together a fund that would be accessible and will be in local currency for local developers.
The fund is part of the Mission 300 programme, led by the World Bank and AfDB, which seeks to provide electricity to 300 million people in Africa by 2030.
The programme is expected to channel tens of billions of dollars into countries that meet specific criteria, including power utility reforms and regulatory adjustments to encourage private investment.
During the Mission 300 Africa Energy Summit in Dar es Salaam, Tanzania, from 27 January to 28 January 2025, more than $8bn in new funding commitments were secured.
This summit was hosted by Tanzania, the African Union, the AfDB, and the World Bank Group. Launched in April 2024, the initiative’s total estimated cost is $90bn.
The two banks have already pledged up to $48bn, with the possibility of additional contributions during the implementation phase.
Africa50 CEO Alain Ebobisse mentioned in an interview in January that while the fund was being planned, its size had yet to be finalised.
Separately, Africa50 is establishing a $200m fund, the Africa Solar Facility, to invest in distributed renewable energy projects across the continent, sponsored by the International Solar Alliance, the report said.
Mini-grids and solar home systems are viewed as crucial for delivering electricity to remote settlements and rural areas far from national grids.
In sub-Saharan Africa, over 80% of the 570 million people without electricity access reside, including 86 million in Nigeria.
