- REA gets approval to establish a renewable asset management company to sustain interventions, leveraging $500m in assets to raise nearly ₦1 trillion for future projects.
- Nigeria secures $950m for renewable energy expansion, with $200m co-financing from Japan, a N100bn solarisation project, and a 600MW rollout by 2026 led by Oando Clean Energy.
The Rural Electrification Agency (REA) has received approval to establish a renewable asset management company to sustain REA’s interventions.
The Managing Director of REA, Abba Aliyu, announced this on Monday, March 10, in Abuja. He disclosed this while signing a collaborative agreement with some Renewable Energy Service Companies (RESCOs).
Aliyu explained that the company would manage significant assets deployed to universities, including infrastructure worth nearly $500 million. He added that REA would use these assets to raise nearly ₦1 trillion, ensuring continued intervention without loans and grants.
According to him, this effort will help the country become self-reliant in driving electricity access and infrastructure in the coming years. He assured that REA would implement this plan before the end of the year.
Aliyu revealed that President Bola Tinubu had approved ₦100 billion for the agency, which it will use to implement the National Public Sector Solarisation project.
He stated that the Federal Government launched the project to reduce governance costs, noting that public institutions spend a significant amount on diesel and electricity. He further said that the REA secured the project to address this issue, which will begin in a few weeks.
The REA MD also disclosed ongoing discussions to secure additional co-financing of $200 million from the Japanese International Development Corporation. He added that this amount would be combined with the $750 million Distributed Access through Renewable Energy fund, bringing total funding to $950 million.
Three weeks ago, Aliyu and the Minister of Power, Adebayo Adelabu, visited Japan, confirming that discussions were nearly complete and the funding would soon be available.
While signing the agreement, Aliyu reaffirmed REA’s commitment to electrifying Nigerian homes through renewable energy projects. He stated that signing the agreement with RESCOs would ensure electricity access for Nigerians.
Speaking on behalf of the RESCOs, Ademola Ogunbanjo, President of Oando Clean Energy (OCEL), announced a major development. He revealed that the company would roll out the first 600 megawatts in 2026.
Ogunbanjo stated that OCEL would supply renewable energy to Nigeria and the entire continent and establish Africa’s first solar modular assembly plant with a recycling line.
The News Agency of Nigeria (NAN) reported that REA signed the agreement with eight RESCOs. The companies 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.