•Renewable varsity to electrify 86m Nigerians
•Oando seeks retention of $50b solar spend in Africa
Nigeria is looking to invest $2.7 billion in renewable energy projects, including the establishment of Africa’s first renewable energy university, as part of its push to become the continent’s leading clean energy hub.
The Federal Government, through the Rural Electrification Agency (REA), is also working to raise N1 trillion to finance electrification projects in universities across the country.
This was disclosed in Abuja, yesterday, at a signing ceremony between REA and Renewable Energy Service Companies (RESCOs), where Oando, Ashipa Electric, De-Janees, Concepts, Fox Power, MBH Power, Okra Solar PTY, Sosal Renewable Energy, Welight Nigeria and others were beneficiaries.
REA Managing Director, Abba Aliyu, said implementation of most of the renewable projects had begun with the deployment of 40 interconnected mini-grids under the Distributed Access through Renewable Energy Scale-up (DARES) project, stressing that the projects would serve as the foundation for scaling up future interventions and ensuring sustainable energy access across the country.
Aliyu said the 40 interconnected mini-grids would provide 21.15 megawatts (MW) of electricity, marking a significant milestone in Nigeria’s renewable energy sector.
He stated that $750 million had already been allocated to the DARES project, while President Bola Tinubu approved N100 billion for the National Public Sector Solarisation Initiative. The initiative aims to reduce the cost of governance by transitioning public institutions from expensive diesel-powered electricity to solar energy.
He further disclosed that discussions were at an advanced stage with the Japan International Cooperation Agency (JICA) to secure additional $200 million in co-financing, which would raise total DARES funding to $950 million.
In addition, Tinubu’s recent visit to Tanzania had helped secure $700 million from the African Development Bank (AfDB)’s Desert-to-Power Framework, which is focused on scaling up renewable energy access across Africa.
According to Aliyu, these public sector investments would be instrumental in positioning Nigeria as the continent’s leading renewable energy hub.
Beyond government funding, REA expects these investments to attract additional $1.1 billion in private sector funding for the implementation of DARES projects.
He outlined a comprehensive roadmap aimed at electrifying 17.5 million Nigerians through a mix of renewable energy solutions.
To ensure the success of these initiatives, Aliyu emphasised the importance of the RESCOs, established to deploy and maintain renewable energy infrastructure.
He said the introduction of RESCOs represented a significant shift in the country’s power sector, particularly in light of the growing collaboration between mini-grid developers and electricity distribution companies (DisCos).
In the past, DisCos had been reluctant to allow mini-grid developers into their franchise areas, but they are now actively seeking partnerships with RESCOs, with some even considering outsourcing entire states to them for energy management.
Achieving the country’s renewable energy ambitions, Aliyu noted, requires localising the energy value chain, as he pointed out that relying on imports for renewable energy infrastructure would only deplete foreign exchange reserves and fail to create local jobs.
To address this, he disclosed that the government initiated a strategy to boost domestic manufacturing and assembly of solar components with capacity now hovering around 600 MW of solar photovoltaic (PV) panel assembly and manufacturing capacity.
To build local expertise in the sector, Aliyu said there is a plan for the establishment of Africa’s first Renewable Energy University in Abuja.
He said REA secured approval for the establishment of a Renewable Asset Management Company, which will oversee nearly $500 million worth of energy infrastructure deployed in Nigerian universities. The company is expected to leverage the assets to raise close to N1 trillion, ensuring long-term sustainability in electrification projects even in the absence of external loans or grants.
Speaking on the establishment of Africa’s first solar module assembly plant with an integrated recycling line in Nigeria, Chief Executive Officer of Oando Clean Energy, Ademola Ogunbanjo, stated that the facility would initially roll out 600MW production line.
Ogunbanjo said the plant would supply not only Nigeria but also the wider African market, emphasising the importance of retaining value within Africa’s renewable energy sector\.
If current trends persist, he noted, up to 90 per cent of the estimated $50 billion that African countries will spend on PV infrastructure over the next decade could flow to China.
