REA pursues a Renewable Asset Shift to raise N500bn for off-grid projects through a new asset management company.

The Rural Electrification Agency said in Lagos that it plans a Renewable Asset Shift that will allow it to raise N500bn from the capital market, using a new asset management company designed to hold and leverage federal solar investments valued at between 200 million and 300 million dollars.

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Managing Director Abba Aliyu announced the plan during PwC’s power roundtable, describing the move as a strategic effort to unlock long-term financing for off-grid projects.

He said Minister of Power Adebayo Adelabu had approved the creation of the Renewable Energy Asset Management Company, which will immediately assume ownership of REA’s renewable assets.

Aliyu said the new firm, which will operate with a substantial balance sheet, will enable the agency to collateralise its solar assets and attract further private sector funding.

He noted that relying on existing infrastructure without leveraging its value had limited the agency’s financial capacity for future work.

He said REA would approach the capital market soon to raise N500bn through the new company, adding that the initiative forms part of a broader finance and investment facility now being co-hosted by the agency.

Discussions with the Bank of Industry are also under way to create a combined project planning, financing and credit platform to support renewable developers.

Aliyu said updated planning data shows that 22 million households still require electricity access.

He explained that REA’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, underscoring the scale of unmet demand.

Despite this need, Aliyu said large-scale renewable projects continue to struggle due to limited early-stage financing.

He pointed to the failure of 14 earlier grid-connected Independent Power Producers, which collapsed after banks declined to provide support before viability was demonstrated.

He faulted most banks for staying on the sidelines, with the exception of Sterling Bank, Stanbic IBTC and FCMB, which he described as among the few actively financing renewable energy.

He also cited supply-chain constraints, low productive demand in rural communities and public hesitation toward solar as persistent barriers.

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Aliyu argued that renewable energy must be recognised as core national infrastructure if Nigeria is to build momentum in its power transition, calling for stronger sector understanding and a more ambitious financing culture to drive progress.