The Rural Electrification Agency (REA) is preparing to raise N500bn from the capital market as part of a new financing approach built around a dedicated renewable energy asset company.
Managing Director of the agency, Abba Aliyu, revealed the plan during a PwC power sector roundtable in Lagos, explaining that the government has approved the creation of the Renewable Energy Asset Management Company (RAMCO), a vehicle intended to hold and leverage federal investments in solar infrastructure valued at between $200m and $300m.
According to him, all existing government-funded renewable energy installations, including projects under the Energising Education Programme, will be transferred into RAMCO’s balance sheet to strengthen its capacity to attract private capital.
Aliyu said the new structure is designed to solve a major gap in Nigeria’s clean-energy sector: the absence of early-stage project financing. He noted that many grid-connected renewable power developers previously failed to progress because banks were unwilling to support them before full project viability was confirmed.
While commending a few lenders such as Sterling Bank, Stanbic IBTC and FCMB for showing interest in renewable financing, he stated that most financial institutions remain hesitant due to limited understanding of the infrastructure.
The REA chief also highlighted updated national planning data showing that 22 million households still lack access to electricity. Of these, he noted that 9.9 million homes are best suited for solar home systems, 5.3 million for grid extension, and 6.8 million for mini-grids.
He listed additional obstacles facing the sector, including supply-chain delays, weak productive demand in rural areas and continued public doubt about the reliability of solar power. He stressed that renewable energy should be treated as core national infrastructure, not as a niche alternative.
To support project preparation and accelerate development, the agency is in talks with the Bank of Industry to create a combined project-planning, financing and credit facility. Aliyu said discussions have advanced significantly.
