REA Secures Approval for Renewable Asset Management Company to Drive Long-Term Power Access

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Abuja, March 10, 2025 (NAN) – The Rural Electrification Agency (REA) has announced it has obtained approval to establish a renewable asset management company aimed at sustaining its long-term interventions in the energy sector.

Mr. Abba Aliyu, the Managing Director of REA, disclosed this during a collaborative agreement signing ceremony with several Renewable Energy Service Companies (RESCOs) in Abuja on Monday.

Aliyu revealed that the newly established company is set to manage assets worth nearly $500 million, which will primarily be deployed to universities. The company will act as a warehouse for these assets, allowing REA to leverage them and raise close to N1 trillion in capital to support continued energy interventions—ensuring that power access in Nigeria is sustained even in the absence of loans or grants.

“This initiative will make the country self-sustaining in driving electricity access and infrastructure for years to come,” Aliyu said, adding that the project’s implementation is slated for completion by the end of the year.

In addition, President Bola Tinubu has approved N100 billion for REA to launch the National Public Sector Solarisation Project, aimed at reducing public sector energy costs. Aliyu pointed out that many public institutions spend significantly on diesel and electricity, and the solarization project will help alleviate these financial burdens.

The REA MD also revealed that discussions with the Japanese International Cooperation Agency (JICA) regarding additional co-financing of $200 million were progressing well. This funding will supplement the $750 million allocated to the Distributed Access through Renewable Energy initiative, bringing the total funding for the project to $950 million. The REA delegation, including Minister of Power Mr. Adebayo Adelabu, recently visited Japan to finalize these discussions.

Addressing the signing of agreements with the eight RESCOs, Aliyu reiterated the agency’s commitment to improving electricity access for Nigerians through renewable energy solutions.

Mr. Ademola Ogunbanjo, President of Oando Clean Energy, spoke on behalf of the RESCOs and outlined plans to roll out the first 600 megawatts of renewable energy by 2026. Ogunbanjo also highlighted the company’s plans to establish Africa’s first solar modular assembly plant, complete with a recycling line, to not only supply Nigeria but also serve the continent.

The eight RESCOs involved in the agreement are 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.