Renewable Energy: REA, Lagos Sign Pact On $150m Lithium Battery Plant, Others

The federal government, through the Rural Electrification Agency (REA), has signed a Memorandum of Understanding (MoU) with the Lagos State government to establish a $150 million lithium battery assembly plant in Lagos.

This initiative, finalised during a roundtable in Victoria Island on Monday, aims to boost local manufacturing capacity and accelerate rural electrification projects across the state.

The agency, which made this known on Wednesday, said the agreement marks a significant milestone under the REA’s State-by-State Initiative and aligns with the federal government’s push to deepen sub-national electricity access through the 2023 Electricity Act.

The REA noted that the new partnership will support the deployment of sustainable, distributed energy solutions across Lagos, addressing the widespread use of over four million diesel generators in the state. The initiative aims to replace this fragmented energy landscape with reliable, renewable alternatives.

Speaking at the event, Lagos State deputy governor, Dr. Obafemi Hamzat, representing Governor Babajide Sanwo-Olu, emphasised the importance of strategic partnerships in tackling energy challenges. “We have excess power generation—but it’s misdirected and not evenly distributed. This collaboration with REA will help bridge that gap,” he said.

REA’s managing director/CEO, Abba Abubakar Aliyu, also announced several major projects under the new agreement, including plans for Nigeria’s first floating solar PV plant (8MW) to power Lagos State University.

He also highlighted the upcoming $150 million Lithium Battery Assembly Plant at the Lekki Free Trade Zone and the establishment of a Renewable Energy University to boost local skills and innovation.

According to Abba Aliyu, “partnership will also advance the National Public Sector Solarization Initiative (NPSSI) and the Distributed Access through Renewable Energy Scale-up (DARES) program, backed by the World Bank.” He added that, “this efforts are designed to empower local developers and build a robust market for Renewable Energy Service Companies (RESCOs) across the country.

“The REA remains committed to fostering collaboration, local manufacturing, and innovation to drive Nigeria’s clean energy transition and ensure sustainable power access for all.
The REA is the implementing agency of the Federal Government of Nigeria (FGN) under the Federal Ministry of Power tasked with the electrification of unserved and underserved communities to catalyse economic growth and improve quality of life for Nigerians.”

The Agency was established under part IX, Sections 88- 89 of the Electric Power Sector Reform Act (EPSRA), 2005.

The REA is currently implementing the Rural Electrification Fund (REF), Capital Projects, Nigeria Electrification Project (NEP), Distributed Access through Renewable Energy Scale-up (DARES), National Public Sector Solarization Initiative NPSSI, Energizing Education Programme (EEP), Energizing Economies Initiative (EEI), Energizing Agriculture Programme (EAP), Energy for All – Mass Rural Electrification, Research and Innovation Hub, among others.