Nigeria, in collaboration with the United Nations, has announced a $500 million funding initiative to support local developers of renewable energy projects. The fund, which aims to expand access to electricity through solar home systems and mini-grids, is targeted at addressing the country’s significant energy gap, particularly in rural areas.
The initiative is spearheaded by the Nigerian Sovereign Investment Authority (NSIA) and the UN’s Sustainable Energy for All (SEforALL), with Africa50, an infrastructure investment platform established by the African Development Bank (AfDB), managing the fund. Speaking on the project, SEforALL CEO Damilola Ogunbiyi highlighted that the fund would be accessible in local currency, making it easier for small-scale energy providers to invest in Nigeria’s renewable energy sector.
“The aim is to put together a fund that would be accessible and will be in local currency for local developers,” Ogunbiyi said during a global development finance forum held in Cape Town, South Africa.
This initiative is part of the broader Mission 300 program, an ambitious effort led by the World Bank and AfDB to provide electricity to 300 million people across Africa by 2030. Countries that implement key power sector reforms and regulatory changes to attract private investment are expected to benefit from the program’s multibillion-dollar funding.
In addition to this effort, Africa50 is launching a separate $200 million Africa Solar Facility, supported by the International Solar Alliance, to promote distributed renewable energy projects across the continent.
With over 86 million Nigerians currently lacking access to electricity—making it one of the most energy-deprived nations globally—this fund comes at a critical time. Mini-grids and solar home systems are seen as vital solutions for rural communities far removed from the national grid. Sub-Saharan Africa as a whole accounts for more than 80% of the global population without electricity, highlighting the urgency of such initiatives.
The Mission 300 program has already garnered significant support, with pledges of $40 billion from the AfDB and World Bank Group during an energy summit held in January 2025 in Tanzania. Experts believe that massive investments like these are essential for bridging Nigeria’s electricity gap and driving economic growth through sustainable energy solutions.
