Banks are more and more prepared to finance renewable vitality initiatives in Nigeria – REA MD
The Nigerian vitality sector is witnessing vital growth, with banks exhibiting elevated willingness to finance renewable vitality initiatives.
The Managing Director of the Rural Electrification Company (REA), Abba Aliyu, emphasised the rising willingness of banks in Nigeria to throw their weights behind renewable vitality initiatives.
Talking on the Lagos Power Summit 2025, Aliyu urged private-sector gamers to refine their enterprise proposals to enhance their possibilities of securing funding.
Aliyu famous that {financial} establishments are adopting extra revolutionary approaches to vitality financing, but many personal companies lack well-structured plans that align with banking expectations.
“I’ve by no means been a spokesperson for banks, however I can confidently say that they’re able to fund renewable vitality. My place permits me to see the transactions firsthand, and I can affirm their dedication,” he said.
Poor enterprise proposals
Regardless of the readiness of banks, many functions submitted by personal companies fail to satisfy basic {financial} requirements.
Aliyu defined that proposals typically lack alignment between enterprise plans and {financial} statements, decreasing their possibilities of approval.
He careworn the significance of due diligence, urging entrepreneurs to develop complete plans that cater to banks’ funding standards.
Vital vitality challenges in Nigeria
Talking on the identical occasion, Chartered Petroleum Engineer and Senior Lecturer on the College of Aberdeen, Dr. Lateef Akanji, highlighted the essential vitality challenges Nigeria faces.
He cited that solely 33% of Nigerians have entry to electrical energy, with energy shortages inflicting an estimated annual {economic} lack of $26.2 billion.
- Dr. Akanji famous that whereas Nigeria possesses huge vitality assets—together with fossil fuels and renewable choices—the nation continues to wrestle with vitality poverty, restricted {economic} development, unemployment, and local weather considerations.
- He praised Lagos State for pioneering clear vitality initiatives by means of progressive insurance policies and stakeholder collaborations.
- He additional advisable addressing the abilities hole within the renewable vitality sector by means of capability constructing, coaching applications, and data switch.
To speed up vitality investments, he advocated for inexperienced bond initiatives and upfront capital funding in important vitality initiatives.
Compliance and accountability within the vitality sector
Commissioner, Engineering and Requirements on the Lagos State Electrical energy Regulatory Fee, Engr (Dr) Oluwaseun Fadare, stated that to make sure compliance and accountability within the vitality sector, there’s a have to implement sufficient upkeep by means of regulation, which requires strategic insurance policies and frameworks.
He highlighted penalties for non-compliance, incentives for upkeep excellence, public reporting mechanisms, capability constructing and coaching, expertise integration in laws, an unbiased regulatory physique, and emergency upkeep funds as key options for efficient regulation.
“Combining obligatory requirements, technological developments, incentives, and penalties, these regulatory measures can successfully implement sufficient upkeep and promote long-term sustainability.”
What it’s best to know
Final month, the Rural Electrification Company obtained approval to ascertain a renewable asset administration firm to maintain its electrification interventions and guarantee long-term infrastructure viability.
- Aliyu disclosed this on the signing of a collaborative Treaty between the company and eight Renewable Power Service Corporations (RESCOs) in Abuja.
- He stated the brand new asset administration firm is anticipated to supervise and keep mega belongings, together with renewable vitality infrastructure price practically $500 million, which has been deployed to universities throughout Nigeria.
Aliyu additionally revealed that President Bola Tinubu has authorized N100 billion for REA to implement the Nationwide Public Sector Solarisation Venture, a strategic initiative geared toward decreasing the price of governance by transitioning public establishments to photo voltaic vitality.
