FG, ISA unveil $500m fund for solar growth

The Federal Government, in collaboration with the International Solar Alliance, has launched a $500m Distributed Renewable Energy Nigeria Fund to accelerate solar energy deployment nationwide.

This was disclosed in a statement on Wednesday by Bolaji Tunji, media aide to the Minister of Power, Chief Adebayo Adelabu. The agreement was formalised by Adelabu and ISA Director-General Ashish Khanna during the Seventh Regional Committee Meeting for Africa held in Accra, Ghana, from September 2 to 4, 2025.

According to the statement, the framework establishes a robust three-year action plan to accelerate Nigeria’s solar adoption. The $500m DRE Nigeria Fund is designed to catalyse investment in renewable energy projects, backed by stronger regulatory support from the Ministry of Power.

The plan prioritises advocacy, capacity building, and programmatic support. Specific initiatives include scaling up solar use in agriculture, promoting rooftop solar adoption, deploying mini-grids, and establishing a Solar Technology and Application Resource Centre.

Adelabu described the partnership as a milestone in Nigeria’s energy transition strategy.

“This partnership is about more than light; it’s about powering development,” he said. “Decentralised renewable energy solutions are not merely about providing light to households, they are about unlocking development, powering schools and clinics, energising small and medium enterprises, supporting agricultural processing, driving e-mobility, and opening opportunities for digital inclusion in rural communities.”

He stressed the far-reaching impact of the initiative, noting that every mini-grid and solar system deployed has the potential to transform lives. “Every mini-grid and solar system deployed means a child can study, a clinic can function, an entrepreneur can thrive, and a farmer can irrigate his fields. This is the transformational promise of renewable energy for Africa,” he added.

The partnership also reflects growing regional collaboration on renewable energy development, as Ghana and The Gambia signed similar agreements during the Accra meeting.

Nigeria, through the initiative, aims to place solar energy at the core of its national electrification and clean energy strategy, helping the country close its electricity access gaps, reduce dependence on fossil fuels, and create sustainable jobs.