REA Moves To Raise N500bn As New Renewable Asset Company Takes Shape

Enam Obiosio

The Rural Electrification Agency (REA) has announced plans to raise N500 billion from the capital market, anchored on a new Renewable Energy Asset Management Company (RAMCO) set up to hold and leverage federal solar investments valued between 200 million and 300 million dollars. The Managing Director of REA, Mr. Abba Aliyu, recently disclosed the plan at a PwC power roundtable in Lagos, noting that all renewable assets under the agency will be transferred into the new entity.

“RAMCO will be created with a balance sheet of close to $200m to $300m. And we are not now going to wait and just look at our asset, just providing services. Those assets must be collateralised to create more private sector funding,” he said, “REA will soon go to the capital market to raise N500bn using RAMCO, using the assets for us to have funding to continue to do the work that we are doing. And that is also the great finance and investment facility that we are now co-hosting. We want to now change that narrative because we cannot just sit and say there is no project development financing. What are we doing? So we are changing that.

We are discussing with the Bank of Industry to create a project planning, financing, and credit facility all embedded in one. And this is a discussion that has gone very far.”  Mr. Aliyu also explained that REA’s planning data now shows that 22 million households need electricity access.

Why It Happened
According to Aliyu, the move follows the approval of the Honourable Minister of Power, Mr. Adebayo Adelabu, who endorsed the creation of the asset management company to support long term financing for off grid projects. He explained that early stage funding has remained the biggest barrier to renewable energy expansion, as developers lack financing before viability is established. The new company will collateralise existing federal solar assets to attract private capital.

Who Benefits
Off grid communities stand to gain the most, with the renewed financing plan expected to support solar home systems, mini grids, and connections for millions of unserved households. Private developers and financial institutions that understand renewable infrastructure will also benefit from clearer bankable structures and new financing windows. The Bank of Industry (BOI) is already in talks to establish a combined project planning and credit facility that will support developers.

Mr. Aliyu explained that REA’s planning data now shows that 22 million households need electricity access. He said the agency’s modelling identified 9.9 million homes suitable for solar home systems, 5.3 million for grid extension, and 6.8 million for mini-grids.

Who Loses
Banks that have remained passive in renewable energy financing may lose out on emerging investment opportunities. Mr. Aliyu noted that aside from Sterling Bank, Stanbic IBTC, and FCMB, most lenders have stayed on the sidelines due to poor understanding of the sector. Households in rural areas may also continue to lag if project financing remains slow.

What the Recognition Signifies
The creation of the new asset management company signals a shift toward treating renewable energy as core national infrastructure rather than a social intervention. It acknowledges that Nigeria’s 22 million unconnected households represent both a development need and a commercial opportunity. It also reflects REA’s push to change the narrative around project development funding after years of failed attempts by grid connected Independent Power Producers.

What to Expect Next
REA is expected to complete the transfer of its renewable assets into the new company once final approvals are secured. The planned N500 billion capital market raise will follow, backed by the new balance sheet. Discussions with the BOI on an integrated project development facility are already advanced. If successful, the financing model could open a new era for large scale renewables, with more developers, lenders, and investors entering the space.