FG approves establishment of Renewable Asset Management Company

Abba Aliyu, the managing director of the Rural Electrification Agency (REA), says the federal government has approved the establishment of Renewable Asset Management Company.

Speaking at an event in Abuja on Monday, Aliyu said the Renewable Asset Management Company has a capital raise target of almost N1 trillion, which will serve as intervention funding in the industry in the absence of loans and grants.

“This is something that we want to achieve. To ensure the sustainability of all these interventions, the Rural Electrification Agency has secured the approval for the establishment of Renewable Asset Management Company,” he said.

“A company that will warehouse on its balance sheet all the mega assets, infrastructure that will be deployed at the universities, close to $500 million worth of assets.

“This company will warehouse these assets and will leverage on the assets to raise close to $1 trillion so that we will continue to intervene even if there is no availability of loans and grants.

“The country will be standing on its own to continue to drive electricity access and infrastructure in the next many years to come. So that ramp-up is also something that we have started, and we intend to make sure that it comes to reality before the end of the year.”

Also, Aliyu said by this time next year, “the first 600 megawatt line will be up and we will be able to begin to supply this local market, not just Nigeria, but also the continent as a whole”.

“It will also be the first, on the African continent, solar modular assembly plant with a recycling line,” he said.

“So we’re building a solar modular assembly plant in Nigeria that will not only roll out solar panels, but also be able to take solar panels that are no longer working, maybe due to age or dysfunction, and recycle them into raw materials that we can then send back to those who use them for different purposes.”

Aliyu said it is not only about building infrastructure for energy provision but to ensure that the supply chain is embedded within Nigeria.