ABUJA, Nigeria – Nigeria’s Rural Electrification Agency (REA) has announced plans to establish a renewable asset management company to bolster the country’s renewable energy sector and improve access to electricity, particularly in rural areas.
REA Managing Director Abba Aliyu unveiled the initiative at a signing ceremony with Renewable Energy Service Companies (RESCOs) in Abuja. The proposed asset management company would oversee approximately \$500 million worth of renewable energy infrastructure deployed to universities and public institutions. The REA aims to leverage these assets to generate up to N1 trillion (approximately \$[Calculate Exchange Rate as of Today’s Date]), which would be reinvested in the power sector.
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Aliyu also announced that President Bola Tinubu has approved N100 billion (approximately \$[Calculate Exchange Rate as of Today’s Date]) for the National Public Sector Solarisation project. This project aims to transition public institutions to solar energy, reducing government expenditure on electricity and diesel while promoting clean energy solutions.
The REA is also in advanced negotiations with the Japanese International Development Corporation for \$200 million in co-financing. This funding would supplement the existing \$750 million Distributed Access through Renewable Energy (DARE) program, bringing total funding for Nigeria’s renewable energy expansion to \$950 million.
As part of its efforts, the REA signed agreements with eight RESCOs, including Ashipa Electric Limited, Oando Clean Energy, and Sosai Renewable Energy Ltd.
Nigeria, like many countries in Africa, faces significant challenges in providing reliable electricity access, especially in rural communities. This initiative reflects a growing focus on renewable energy solutions to address these challenges and promote sustainable development. The success of the asset management company and the various renewable energy projects will depend on effective management, private sector participation, and a supportive regulatory environment
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