By Patience Chat Musicg
In a major step towards expanding energy access and decarbonising its power sector, Nigeria’s Rural Electrification Agency (REA) has signed a crucial Memorandum of Understanding (MoU) with ten leading Renewable Energy Service Companies (RESCOs), including Oando Clean Energy. This important partnership is set to generate a remarkable 948 megawatts (MW) of clean electricity from various renewable sources across the country.
The ceremony, held in Abuja, featured the REA’s Managing Director, Engr. Abba Aliyu, outlining an ambitious plan to transform Nigeria’s energy sector. At the heart of this vision is the Federal Government’s approval for the creation of a N500 million Renewable Asset Management Company (RAMCO), aimed at attracting an incredible N1 trillion in investments for vital projects within the renewable energy sector. This innovative funding approach intends to lessen dependence on external loans and grants, encouraging sustainable, locally-driven growth.
“To ensure the enduring sustainability of all these crucial interventions, the Rural Electrification Agency has successfully secured approval for the establishment of RAMCO,” Engr. Aliyu announced. He elaborated, “This company will serve as the financial backbone, warehousing on its balance sheet all the mega assets and infrastructure – including close to N500 million worth of assets already deployed at universities. RAMCO will leverage these assets to raise approximately N1 trillion, enabling us to consistently intervene and drive progress even in the absence of traditional loans and grants.”
Aliyu emphasised the transformative impact of this initiative, stating that RAMCO will enable Nigeria to independently accelerate electricity access and infrastructure development for many years to come. “This ramp-up is already underway, and we are committed to seeing it come to fruition before the end of the year,” he affirmed.
Further emphasising the government’s commitment to efficiency and cost reduction, Aliyu revealed a N100 billion project aimed at solarising public sector institutions. This important initiative, set to begin within weeks, will not only provide reliable power to government facilities but also considerably lower operational costs.
In a move aimed at strengthening funding for large-scale renewable projects, REA has also engaged in advanced discussions with the Japanese International Development Corporation (JICA) for a further co-financing of $200 million. This significant contribution will enhance the existing $750 million Distributed Access through Renewable Energy Scale-up (DARES) project, increasing its total funding to an impressive $950 million. This combined financial capacity is expected to speed up the deployment of decentralised renewable energy solutions across underserved communities.
Among the prominent companies signing the collaborative agreement, Oando Clean Energy notably committed to implementing a substantial 1,200 MW of renewable energy projects, highlighting the scale of private sector confidence in Nigeria’s green energy future.
Looking beyond immediate infrastructure development, Engr. Aliyu unveiled another pioneering initiative: the agency’s plan to establish the first Renewable Energy University in Africa, to be situated in Abuja. This educational institution represents a long-term strategic investment in human capital development, aiming to cultivate a skilled workforce essential for supporting Nigeria’s renewable energy ambitions and positioning the nation as a leader in green technology and innovation across the continent.
