The Rural Electrification Agency REA plans to enter the capital market to raise N500bn. The move will rely on a new renewable asset management company created to manage solar investments worth $200m to $300m. REA’s Managing Director, Abba Aliyu, revealed this during PwC’s power roundtable in Lagos. He said the plan aims to unlock long-term financing for off-grid projects.
He confirmed that the Minister of Power, Adebayo Adelabu, approved the new Renewable Energy Asset Management Company. REA will now transfer all its renewable assets into this firm. According to him, RAMCO will start with a strong balance sheet and attract more private funding.
Aliyu noted that these assets will be collateralised for greater financing opportunities. He added that REA will use RAMCO to raise N500bn and expand ongoing electrification work. He also mentioned a new partnership with the Bank of Industry. The goal is to develop a combined project planning and credit facility.
He said REA’s data shows that 22 million households still need electricity access. The agency identified 9.9 million homes for solar systems, 5.3 million for grid extension, and 6.8 million for mini-grids. However, he stressed that large renewable projects face delays because early-stage financing is scarce.
Aliyu explained that banks avoid project development risks. He noted that only a few banks actively fund renewable projects. Also listed supply issues, low rural demand, and public hesitation as major obstacles.
He urged the nation to view renewable energy as critical infrastructure that deserves serious investment.
