REA Launches Renewable Energy Asset Firm, Eyes N1 Trillion Investment

The Rural Electrification Agency (REA) has secured approval to establish a renewable asset management company to oversee and sustain electrification projects across Nigeria.

Managing Director of REA, Mr. Abba Aliyu, announced this during a formal agreement signing with eight Renewable Energy Service Companies (RESCOs) in Abuja.

According to Aliyu, the company will manage renewable energy assets worth nearly $500 million that have been deployed to Nigerian universities and other institutions.

“This company will be responsible for managing these assets, allowing REA to leverage them to generate close to N1 trillion. This ensures continued intervention even in the absence of loans or grants, positioning Nigeria for sustainable electricity expansion,” Aliyu explained.

He emphasized that the initiative will enable Nigeria to independently drive electricity access and infrastructure development for years to come. The goal is to make the company fully operational before the end of the year.

N100 Billion Fund for Public Sector Solar Project

Aliyu also disclosed that President Bola Tinubu has approved N100 billion for the National Public Sector Solarisation Project, designed to reduce government energy costs by transitioning public institutions to solar power.

“The budget analysis indicates that many public institutions spend heavily on diesel and electricity. To cut costs, REA initiated this project, set to launch in the coming weeks,” he stated.

Japan to Provide Additional $200 Million for Renewable Energy

Aliyu confirmed that discussions with Japan’s International Development Corporation for a $200 million co-financing deal are nearing completion.

“Three weeks ago, we traveled to Japan with the Minister of Power, Mr. Adebayo Adelabu, and we are close to finalizing the deal,” Aliyu noted.

This financing will be merged with the $750 million Distributed Access through Renewable Energy (DARE) fund, increasing the total available funding to $950 million.

600MW Solar Expansion by 2026

RESCOs, represented by Oando Clean Energy President, Mr. Ademola Ogunbanjo, announced plans to roll out 600 megawatts (MW) of solar energy by 2026.

“This agreement with RESCOs is a major step toward ensuring Nigerians have reliable electricity access,” Ogunbanjo said.

Strategic Partnerships to Expand Renewable Energy Access

REA signed agreements with eight RESCOs to accelerate Nigeria’s renewable energy deployment. The companies involved 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
• Weight Nigeria Ltd

Aliyu reiterated that these partnerships align with REA’s commitment to increasing sustainable electricity access across Nigeria.