- REA will raise ₦500 billion from the capital market, backed by a new renewable asset management company holding $200 million to $300 million worth of federal solar assets.
- The new RAMCO structure will unlock early-stage financing, a major barrier that previously stalled large renewable projects and caused past IPPs to fail.
The Rural Electrification Agency (REA) plans to raise ₦500 billion from the capital market. It will utilise a new company, the Renewable Energy Asset Management Company (RAMCO), to support the fundraising efforts. RAMCO will hold federal solar assets valued between $200 million and $300 million.
REA’s Managing Director, Abba Aliyu, announced this at PwC’s Power Roundtable in Lagos. He said the Minister of Power, Adebayo Adelabu, approved the creation of RAMCO. As a result, REA will move all its renewable energy assets into the new company.
According to Aliyu, RAMCO will start with a strong balance sheet. He said the assets will be collateralised to attract private-sector funding. Therefore, REA will soon go to the capital market to raise ₦500 billion through RAMCO.
Furthermore, Aliyu stated that REA is collaborating with the Bank of Industry to establish a single facility for project planning, financing, and credit. This move aims to fix the long-standing lack of early-stage financing for renewable energy projects.
He explained that REA’s data shows 22 million households still need electricity access. The modelling identifies 9.9 million homes for solar home systems, 5.3 million for grid extension, and 6.8 million for mini-grids.
However, Aliyu said many large renewable projects remain stuck. The main reason is the absence of funding before projects reach viability. He pointed to the failure of 14 earlier grid-connected IPPs because banks refused to finance their early stages.
Additionally, he noted that only Sterling Bank, Stanbic IBTC, and FCMB are actively financing renewable energy projects. He said other banks lack understanding of the sector. He also mentioned supply-chain delays, low productive use in rural areas, and public hesitation toward solar as significant challenges.
Finally, Aliyu stressed that Nigeria must treat renewable energy as core national infrastructure. He said, “Renewable energy is an infrastructure project, and the country must see it that way.”