REA Establishes Renewable Asset Management Company, Targets N500bn Funding

The Rural Electrification Agency (REA) has announced the creation of the Renewable Asset Management Company (RAMCO), aiming to revolutionise renewable energy financing in Nigeria.

The  REA managing director, Engr. Abba Aliyu, who made this known, said the new entity, established with approval of the minister of Power, Adebayo Adelabu, would seek to mobilise as much as N500 billion in commercial funding across three phases for deployment of renewable infrastructure nationwide.

Speaking at the signing of a Memorandum of Understanding (MOU) with 13 institutions and REA’s key partners in Abuja on Monday, Engr. Aliyu emphasised a strategic shift away from relying solely on federal government public funds.

Aliyu said the RAMCO would leverage both assets already deployed by the agency and partnerships like that with Barton Heyman to drive private investment into the sector.

“Our target in the first instance is to catalyse N500 billion in the three phases of commercial funding that will be utilised to continue to deploy this renewable infrastructure across the country,” Aliyu explained.

The agency believes that this fresh approach would  help accelerate the growth of renewable energy and deliver greater access to power in underserved areas.

The REA signed agreements with 13 institutions for various partnerships  as follows: The African Energy Council; Nigeria Incentive-based Risk Sharing System for Agricultural Lending Plc (NIRSAL); Nigerian Correctional Service on strategic collaboration for the deployment of solar powered infrastructures of renewable energy across the Nigerian Correctional Service facilities in Nigeria; Green Energy Mission Africa on the establishment of strategic collaboration for joint implementation of sustainable university challenge for research & development in renewable energy and the renewable energy internship programme;  Energy Grid Solution Ltd on building Long-term strategic collaboration that serves as a global best practice for scaling the development, deployment and operation of sustainable decentralised solar power projects across the country as well as Barton Heyman Limited, on mutual collaboration on the design and implementation of the Green Finance and Investment Facility (GFIF) Programme, including a carbon credit reporting framework.

Others are eight renewable energy service companies (RESCOs) including Grey Sak Ltd; ⁠Energy Grid Solution; ⁠COOD CRL;  ⁠PVG Solar; Auxano; Tranos; Esodora Ltd as well as Suntisolar.

Aliyu noted that the collaboration with RESCOs had unlocked private financing to the tune of $100 billion from First City Monument Bank and $20 million in concessional loans through the International Finance Corporation.

He added: “Through those MOUs with the RESCO’s, we have designed the DRIP program, Distributed Renewable Energy Enhancement Fund, a funding provided by the World Bank to be used to enhance the technical competence and the governance of the RESCOs.”

On the specific impact on public institutions, Aliyu revealed the agency had “secured 100bn Naira under the 2025 budget, which we are using to deploy renewable infrastructure in different public institutions.” Additionally, 200 mini-grids are under construction in 13 states, a direct outcome of synergies with sub-nationals that were facilitated by these agreements.

In his opening remarks, the executive director, Technical Services of the REA, Engr. Umar Umar said that the event marked a bold step in deepening cross-sector collaboration for rural electrification and national development.

Umar noted that the agreements represented a shared vision to improve energy access in ways that aligned with Nigeria’s development agenda, especially in critical sectors such as agriculture, education, security, and health.

He said that the REA currently implemented projects in all 36 states and the Federal Capital Territory (FCT), with more than 160MW of off-grid solar capacity deployed.

This, he said included electrifying over 1,650 communities, powering more than 1,000 healthcare centres, and connecting over six million Nigerians.

“But we know this is just the beginning. Through these MoUs, we are laying the foundation for a new chapter of accelerated impact.

“With the NCoS, the REA will deploy clean energy solutions to improve security, vocational training, and operational efficiency within custodial facilities, supporting justice sector reforms and human rights.,” he maintained.

Umar said that the partnerships also aligned with the federal government’s Energy Transition Plan (ETP), which aimed for universal energy access by 2030 and net-zero emissions by 2060.

He expressed optimism that the collaboration would lead to long-lasting change and reaffirmed REA’s commitment to working hand-in-hand with stakeholders to deliver scalable and sustainable energy solutions for all Nigerians.