Nigeria and a United Nations agency have set a $500 million target for a fund that would be accessed by local developers of renewable energy.
As reported by Bloomberg, the fund is aimed at expanding access to renewable energy through solar home systems and mini-grids, especially for people in rural areas.
The initiative, 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 established by the African Development Bank (AfDB).
The Chief Executive Officer of SEforALL, Damilola Ogunbiyi, said the fund would be accessible to local developers and available in local currency to boost investment in Nigeria’s renewable energy sector.
Ogunbiyi, while speaking on the sidelines of a global development finance forum last weekend in Cape Town, South Africa, emphasized the importance of financial accessibility 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,” she said in an interview with Bloomberg.
Fund is part of Mission 300
Bloomberg reported that the fund is part of the broader Mission 300 program, an initiative led by the World Bank and the AfDB to provide electricity to 300 million people across Africa by 2030.
Countries that meet specific criteria—such as power sector reforms and regulatory adaptations to encourage private investment—stand to benefit from the program’s multibillion-dollar funding.
In addition to this initiative, Africa50 is launching a separate $200 million Africa Solar Facility, sponsored by the International Solar Alliance, to support distributed renewable energy projects across the continent.
Mini-grids and solar home systems are seen as critical solutions to Nigeria’s electricity crisis, particularly for rural communities far from the national grid.
Currently, more than 86 million Nigerians lack access to electricity, making the country one of the most energy-deprived in the world. Sub-Saharan Africa as a whole is home to over 570 million people without electricity, accounting for more than 80% of the global population living without power.
What you should know
- Nairametrics reported that the AfDB and the World Bank Group pledged $40 billion towards the Mission 300 initiative, which is aimed at providing electricity to 300 million Africans by 2030.
- The pledge was made at the Mission 300 Africa Energy Summit held in January 2025 in Dar es Salaam, Tanzania.
- Experts have said that massive investment is needed to help Nigeria bridge the electricity gap that has long hindered economic growth and development. Renewable energy is expected to play a significant role in achieving energy security.
