The Rural Electrification Agency (REA) has taken a significant step toward accelerating Nigeria’s clean energy transition by signing a Memorandum of Understanding (MoU) with 10 Renewable Energy Service Companies for the generation of 948 megawatts (MW) from renewable sources.
Additionally, the agency has partnered with Oando Clean Energy to develop a 1.2-gigawatt solar power plant, a landmark project aimed at boosting Nigeria’s renewable energy infrastructure. This initiative forms part of the $950 million Distributed Access through Renewable Energy Scale-up Project, designed to enhance local capacity in solar energy production.
Speaking at the signing ceremony in Abuja, REA Managing Director, Abba Aliyu, highlighted the project’s funding from the World Bank and the Japan International Cooperation Agency. He emphasized that it aims to provide electricity to over 17 million Nigerians through a combination of off-grid power plants, interconnected grids, and a solar manufacturing facility.
Read also: IFC Invests $70 Million in Nigerian Companies to Boost Renewable Energy
“The way we want to scale up this intervention is the same way we want to localize solar material production. One of the MoUs we signed today is for a 1.2-gigawatt PV panel assembly plant in Nigeria. In the coming weeks, we will also sign a joint development agreement with Infracorp and the Ministry of Finance Incorporated for an additional 1-gigawatt PV panel assembly plant in collaboration with REA,” Aliyu stated.
To ensure long-term sustainability, the government has approved the establishment of a N500 million Renewable Asset Management Company, with a target of raising N1 trillion for sector interventions, reducing dependence on loans and grants.
“This company will warehouse critical energy infrastructure, particularly those deployed at universities, and leverage them to raise additional funding. This ensures that Nigeria can continue expanding electricity access, even in the absence of external financing,” Aliyu explained.
In another major initiative, the REA has secured N100 billion to solarize public sector institutions, with implementation set to begin in the coming weeks.
Further cementing Nigeria’s role as a leader in renewable energy, Aliyu announced plans to establish Africa’s first Renewable Energy University in Abuja, which will serve as a hub for talent development in the clean energy sector.
Speaking on the partnership, Oando Clean Energy President & CEO, Ademola Ogunbanjo, revealed that the company will launch its first 600-megawatt solar production line next year, catering to both the local and African markets.
“This will be Africa’s first solar modular assembly plant with a recycling line. We are not only producing solar panels but also ensuring sustainability by recycling non-functional panels into raw materials for reuse,” Ogunbanjo said.
These initiatives mark a new era for Nigeria’s renewable energy landscape, positioning the country as a key player in Africa’s green energy revolution.
