Renewable Energy Association Urges Naira-based Financing To Unlock Access

The Renewable Energy Association of Nigeria (REAN) has launched a new policy brief, recommending a shift to naira-denominated concessionary financing for renewable energy developers and consumers in Nigeria.

At a 2-day conference in Abuja with the theme, “Stronger Together: Advancing Energy Access Through Policy, Finance And Inclusion” the Association maintained that Nigeria’s renewable energy sector offers significant potential to address the country’s persistent electricity access deficit, highlighting the World Bank’s report of 85 million people still lacking access to a reliable electricity supply.

Speaking at the event, acting chief executive officer of the Renewable Energy Association of Nigeria (REAN), Motunrayo Akinfala, called for closer collaboration among stakeholders to address the lingering challenges confronting Nigeria’s renewable energy sector.

Akinfala noted that coordinated action among public and private sector players was essential to closing the country’s energy access gaps. “This conference is very apt at this time because now, more than ever, it is important for stakeholders in the renewable energy sector to collaborate,” she said.

She explained that meaningful partnerships involving development institutions, financiers and governments were necessary to scale clean energy deployment, especially to underserved groups.

“Together we can make more change happen. We can increase access not only in urban areas but also for last-mile communities and low-income consumers who cannot adopt renewable energy because of the high upfront costs.”

Akinfala appealed for stronger policy support from the federal government, urging authorities to act on recommendations generated from the conference and the newly issued policy brief. “We need more support from the government. We expect that from the commitments made at this conference, the government will begin to create more enabling policies that will expand renewable energy access in Nigeria.”

In his address, mnister of Power, Chief Adebayo Adelabu, represented by the principal electrical engineer, Engr. Metu Francis, said REAN’s leadership in advocating for naira-based concessionary financing and championing quality standards across the renewable energy value chain are vital for achieving national energy mix targets and ensuring no community is left behind.

He said the theme of the Conference aligns strongly with the Ministry’s commitment to expanding clean, reliable, and affordable energy for all Nigerians.

“We commend REAN for continuously fostering collaboration, innovation, and meaningful dialogue across the renewable energy ecosystem. The Ministry recognises the critical role of private sector leadership, local manufacturing. Financing institutions and community-based solutions play in achieving our national energy transition goals.

“Together, we can accelerate sustainable mini-grids, strengthen local capacity, unlock concessionary financing, and support women, SMEs, and underserved communities in adopting clean energy solutions. We appreciate REAN’s efforts in promoting evidence-based advocacy and industry-wide partnerships that strengthen the renewable energy sector.

He assured the Ministry’s continued support towards achieving Nigeria’s energy mix targets and a more sustainable future. “As Nigeria accelerates the deployment of renewable energy solutions from solar home systems and productive-use appliances to mini-grids, local manufacturing, and climate-smart technologies, collaboration becomes even more essential.”

Additionally, Ayo Ademilua, President of the Renewable Energy Association of Nigeria (REAN), noted that over the years, REAN has consistently driven impactful advocacy, industry coordination, and strategic partnerships that have significantly contributed to Nigeria’s renewable energy ecosystem.

He said: “Over the past year, REAN has continued to drive impactful advocacy, industry coordination, and strategic partnerships that have contributed significantly to Nigeria’s renewable energy ecosystem. REAN members have established solar panel assembly plants in the North and South. These facilities are producing high-quality panels for domestic and export markets, boosting investor confidence.

“Resulting impact includes increased Foreign Direct Investment into Nigeria, enhanced foreign exchange earning potential through exports, a more resilient and sustainable renewable energy value chain.

“Despite this progress, Nigeria continues to face significant energy access challenges. Our estimated 3.3 GW installed renewable energy capacity remains far from the 9 GW target set for 2030. Millions of Nigerians still live without reliable electricity. The Just Energy Transition Plan is progressing, but requires stronger action across policy, financing, and implementation. These gaps are not setbacks but reminders that our work must intensify.”