FG Approves N500 Billion for Solar Infrastructure in Nigeria
- REA announced that the federal government has approved plans for a N500 billion Renewable Asset Management Company (RAMCO) to fund solar energy projects
- The initiative will support the construction of small grids and sustainable energy infrastructure, with funding provided in three stages
- The Memorandum of Understanding signed by RESCOs, NIRSAL, and government organizations will supply clean energy to prisons and agricultural areas
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Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Rural Electrification Agency of Nigeria (REA) has stated that plans to create a N500 billion Renewable Asset Management Company (RAMCO) to fund solar energy have been authorized by the federal government.
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The disclosure was made by REA Aliyu, the Managing Director, when the Nigerian Correctional Service, Renewable Energy Service Companies (RESCOs), and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) signed a Memorandum of Understanding.
According to Aliyu, the RAMCO is a commercial funding source that will spur the nationwide deployment of infrastructure, rather than coming from the federal government.
According to him, the money will be implemented in three stages and will be available to developers for the construction of small grids and other sustainable energy infrastructure.
According to the Memorandum of Understanding signed by the RESCOs and government organizations, clean energy would be supplied to prisons and agricultural areas nationwide.
“We want NIRSAL to target those areas to catalyse funding and to de-risk the agricultural activities within those clusters, thereby creating sustainability and ensuring that whatever financial commitment it makes within those areas, the possibility of recouping its investment is almost certain.
“Also, there will be the 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 will now spread across the other states. Those communities that are often neglected, those communities that are often not factored into the deployment of infrastructure in the country, that narrative is changing due to your foresight and due to your innovation.”
The prior Memorandums of Understanding, he continued, provided N100 billion in private investment through First City Monument Bank for the RESCOs' nationwide renewable energy deployment.
“We have also catalysed the funding of $20m by the International Finance Corporation as debt financing, concessional debt financing for the RESCOs, which, as of today, four of our RESCOs have accessed. 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.
FG insists on ending solar panel imports
Legit.ng reported that amid the crisis in Nigeria’s power sector, the importation of photovoltaic solar panels has risen in recent years, now amounting to almost N200 billion annually.
However, the federal government has insisted on ending the importation of solar panels as a means to save the much-needed foreign exchange and reduce pressure on the naira.
The government is instead looking in a different direction and has recently revealed what will be the alternative to solar panel imports.
Source: Legit.ng
