FG Targets 6,500MW Power Supply By December, 8,000MW In 2027

…Unveils Renewable Assets Management Company

…RAMCO will unlock fresh capital for sustainable renewable assets—REA

The federal government has set a target of 6,500 megawatts of electricity supply by the end of December, with a further target of 8,000 megawatts by 2027, as it unveiled the Renewable and Asset Management Company (RAMCO), a new institution charged with managing the country’s renewable power infrastructure.

The minister of Power, Joseph Tegbe, who disclosed this in Abuja on Wednesday, said that the country’s current generation capacity stood at approximately 5,000 megawatts.

He said the ministry was working to close that gap through grid stabilisation efforts, asset optimisation and renewed investment in transmission and distribution infrastructure.

“We’re struggling to wheel 5,000 megawatts today, and my target is that by the end of this year, we will conveniently be wheeling 6,500 megawatts. We will be wheeling conveniently 8,000 megawatts, by the end of next year, Tegbe said.”

Tegbe said RAMCO would be central to the government’s push to raise generation and improve reliability, describing its establishment as a shift from the traditional model of acquiring and abandoning public power assets to one built on professional stewardship, governance and measurable performance.

“RAMCO is not going to be measured by how many megawatts it delivers, but the reliability of the delivery and the sustainability of that delivery,” he said, adding that the company’s success would ultimately be judged by how many assets remained operational, rather than the size of its portfolio.

The minister said Nigeria had, for too long, operated an unbalanced power sector, rich in energy resources and installed infrastructure, yet poor in the availability of dependable electricity.

He said RAMCO was designed to correct that imbalance by treating public power assets as national investments whose value must be preserved, rather than infrastructure to be commissioned and left unattended.

According to him, the ministry had identified three priority corridors for grid stabilisation: the Lagos axis, the Abuja-Kaduna-Kano corridor, and the Enugu-Onitsha axis.

He announced that the government will build mini-grids in areas facing transmission deficits, emphasizing that RAMCO was established to deliver sustainability and reliability while bridging the gap between accessibility and long-term viability.

The minister disclosed that a technical audit is currently underway on infrastructure over 42 years old, noting that these outdated facilities will be replaced with modern assets in a matter of weeks.

Highlighting asset optimisation through aggregation, he explained that energy resources will be strategically linked to high-demand clusters.

He added that the federal government will revisit the East-West supergrid project to build resilience into the national grid.

The minister further revealed that the federal government is targeting power generation of 6,500MW by year end and 8,000MW by the end of 2026.

He stated that 21 dormant dams will be put to productive use, noting that those identified along the Sokoto-Badagry expressway corridor will be made commercially viable.

“Public investment must be matched by discipline to protect the assets,” Tegbe stressed.

The minister said the government was also addressing liquidity challenges within the sector, including the accumulated debt burden, through a framework for sustainable repayment and the closure of tariff shortfalls that have long undermined investment in the sector.

On the scope of RAMCO’s operations, Tegbe said the company’s mandate would not be limited to renewable energy alone, but would eventually extend across the entire grid.

Also speaking, the chairman of the Rural Electrification Agency (REA), Ayodele Fayose,  described the Renewable Asset Management Company (RAMCO) as the best thing to happen to Nigeria’s electricity sector.

Fayose, while commending the REA managing director and his management team for upholding a legacy of continuity, he noted that it is not enough to simply build new projects; their maintenance and operational continuity are equally critical.

Fayose also emphasised the need for a shift in public attitude, stating that infrastructure will last significantly longer when Nigerians adopt an ownership mindset and protect public utilities.

In his remarks, the managing director/CEO of the REA, Abba Aliyu, described RAMCO as the future of productive renewable energy asset utilization.

He highlighted institutional continuity across both the Ministry and the Agency as the foundation for bringing the initiative to fruition.

He explained that RAMCO will not burden the national treasury, but will instead unlock fresh private capital and revenue streams to ensure the long-term sustainability of off-grid infrastructure.

“RAMCO will reduce Nigeria’s dependence on government budgets, sovereign borrowing, and development finance to expand electricity access,” Aliyu said.

Aliyu said the new model would also enable existing renewable energy assets to generate predictable revenues that could be aggregated and potentially leveraged to attract private capital for additional infrastructure.

He added that RAMCO will enable capital deployed into mature renewable energy assets to be refinanced or recycled under robust commercial and regulatory frameworks, freeing up liquidity for new projects.

Beyond asset management, Aliyu said RAMCO would support Nigeria’s efforts to develop local renewable energy manufacturing capacity.

He said REA had entered into a joint development arrangement with MOFI and InfraCorp involving German manufacturers for the production of solar modules, batteries, inverters, street lighting equipment and solar asset recycling.

Also speaking, the managing director/CEO of MOFI, Dr. Armstrong Takang, highlighted the critical role RAMCO will play in actualising Nigeria’s target of a one-trillion-dollar economy.

He explained that the country must look beyond its debt profile and properly account for its capital assets to boost public revenue and enhance fiscal transparency.

Similarly, the managing director of InfraCorp, Dr Lazarus Angbazo, praised RAMCO as a landmark achievement of collaboration adding that a portfolio of well-managed assets will unlock asset-backed financing, credit enhancement, and long-term institutional capital.

“Infrastructure does not create value simply because it has been commissioned; it creates value because it continues to work.”

“RAMCO exists to provide stewardship of Nigeria’s renewable energy assets by maintaining, optimising, and restoring underperforming systems so they continue to deliver services. It represents a major opportunity for the private sector and will cultivate a competitive renewable energy economy,” Angbazo stated.

The director-general of the Budget Office of the Federation, Tanimu Yakubu, also welcomed the initiative.

He noted that RAMCO provides investors with a transparent portfolio backed by sound lifecycle planning and credible performance tracking, firmly positioning Nigeria as a serious destination for global renewable energy investments.

Delivering his remarks, the minister of State for Health and Social Welfare, Dr Iziaq Adekunle Salako, described reliable electricity as a non-negotiable clinical input critical to saving lives, powering neonatal incubators, operating theatres, and cold-chain vaccine storage.

Highlighting that between 60 and 70 percent of Nigeria’s public health facilities face severe outages or complete energy poverty with teaching hospitals spending up to half their operating budgets on diesel, Dr Salako hailed RAMCO as the missing operational link needed to fulfill the presidential Nigeria Power-for-Health Initiative, which aims to electrify at least 30 percent of health facilities by the end of 2027.

Dr Salako explained that over 30 per cent of solar systems installed in Primary Health Care Centres historically fail within three years due to a lack of maintenance budgets, spare parts, and post-commissioning ownership.

To solve this, he proposed four key synergies: designating health facilities as a distinct asset class within RAMCO, integrating RAMCO’s commercial asset management with hospital-level energy teams, unifying energy audit data, and directing a portion of recycled capital to aggregate and sustain off-grid primary healthcare centers.