FG to create N500bn solar investment fund
The Rural Electrification Agency of Nigeria (REA) has stated that the federal government has approved plans to establish a N500bn Renewable Asset Management Company (RAMCO) to finance solar The Managing Director of REA Aliyu made the disclosure during the signing of an MoU between the agency, Renewable Energy Service Companies (RESCOs), Nigeria Incentive-Based Risk Sharing […]
The Rural Electrification Agency of Nigeria (REA) has stated that the federal government has approved plans to establish a N500bn Renewable Asset Management Company (RAMCO) to finance solar
The Managing Director of REA Aliyu made the disclosure during the signing of an MoU between the agency, Renewable Energy Service Companies (RESCOs), Nigeria Incentive-Based Risk Sharing System For Agricultural Lending (NIRSAL) and the Nigerian Correctional Service.
Aliyu said the RAMCO is a commercial funding and not through the federal government that will catalyse the deployment of infrastructure across the country.
He said the fund, which will be accessible to developers to build mini grids and other clean energy infrastructure, will be implemented in three phases.
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He added that the MoU signing between the RESCOS and government agencies is to provide clean energy in correctional centres and farmlands across the country.
“We want NIRSAL to target those areas to catalyse funding and to de-risk the agricultural activities within those clusters, thereby creating sustainability and also ensuring that whatever financial commitment it makes within those areas, the possibility of recouping their investment is almost certain.
“Also, there will be deployment of a solar farm in our correctional service areas. We will also speak about the exchange of information and data between different government agencies. We will start with the head office in Abuja and we will now spread across the other states. Those communities that are often neglected, those communities that are often not factored in all the deployment of infrastructure in the country, that narrative is changing due to your foresight and due to your innovation.
He added that the previous MoUs, the private funding to the tune of N100b through First City Monument Bank for the RESCO’s deployment of renewable energy across the country.
“We also have catalysed the funding of $20m by International Finance Corporation as a debt financing, concessional debt financing for the RESCOs, which as of today, four of our RESCOs have accessed that funding. Based on that MOU, we have secured N100bn under the 2025 budget, which we are using to deploy renewable infrastructure in different public institutions,” he said.