The Rural Electrification Agency of Nigeria has received approval to set up a renewable asset management company to support its ongoing efforts in improving electricity access across Nigeria. This move is expected to ensure the long-term sustainability of the agency’s interventions in renewable energy infrastructure.
Speaking at a signing ceremony in Abuja, the Managing Director of REA, Abba Aliyu, outlined the agency’s strategy to leverage the new company’s assets for additional funding. According to him, the company will manage a portfolio of renewable energy assets, including infrastructure worth approximately $500 million, which has already been deployed to universities.
The establishment of this entity is expected to help REA raise nearly N1 trillion, enabling continued interventions in rural electrification projects even in the absence of loans or grants. The initiative aligns with the agency’s vision of ensuring Nigeria becomes self-reliant in expanding electricity access and strengthening infrastructure development for years to come.
In addition to this initiative, President Bola Tinubu has approved a funding allocation of N100 billion for REA to implement the National Public Sector Solarisation project. This federal government-led initiative aims to lower the cost of governance by reducing public sector expenditure on diesel and electricity.
Analysis of budget implementation in various government institutions has highlighted significant spending on energy costs, particularly the purchase of diesel and electricity bills. By transitioning to solar power, the government seeks to enhance efficiency and cut operational costs.
Beyond this, REA is in advanced discussions with the Japanese International Development Corporation to secure additional co-financing worth $200 million. This funding will supplement the existing $750 million available under the Distributed Access through Renewable Energy program, bringing the total financing to $950 million.
A recent trip to Japan by REA’s leadership, accompanied by the Minister of Power, Adebayo Adelabu, played a key role in advancing negotiations. With discussions nearing completion, the funds are expected to be made available soon, bolstering efforts to expand renewable energy adoption across the country.
As part of its commitment to electrification through renewable energy, REA signed an agreement with several Renewable Energy Service Companies (RESCOs). The agreement is aimed at accelerating the deployment of solar power solutions to homes and businesses in Nigeria.
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One of the major players in this initiative, Oando Clean Energy, announced plans to roll out 600 megawatts of renewable energy by 2026. This project is expected to enhance energy access not just in Nigeria but across the African continent. Additionally, the company is working on establishing Africa’s first modular solar assembly plant with an integrated recycling line.
Other companies involved in the agreement include Ashipa Electric Limited, De-Janees Concept Ltd, Fax Power Ltd, M&BH Power Ltd, Okra Solar PTY Ltd, Oando Clean Energy, Sosai Renewable Energy Ltd, and Weight Nigeria Ltd. These firms will contribute to expanding Nigeria’s renewable energy landscape by implementing clean energy solutions and improving electricity accessibility.
Through these efforts, REA is positioning itself as a key driver in Nigeria’s transition to sustainable energy. By leveraging asset-backed financing, securing international partnerships, and collaborating with private sector players, the agency is working to bridge Nigeria’s energy gap and promote long-term renewable energy development.
