RAMCO targets private capital to revive Nigeria’s renewable pow...

The Rural Electrification Agency (REA) is repositioning the Renewable Asset Management Company (RAMCO) to attract private capital into Nigeria’s renewable power sector, reduce pressure on government budgets and improve the long-term performance of off-grid electricity infrastructure.

REA Chairman, Ayodele Fayose, described RAMCO as a major development for the power sector, saying the success of new electricity projects would depend not only on construction but also on effective maintenance and operational continuity.

Speaking in Abuja at RAMCO’s launch, Fayose said infrastructure that was not properly managed would fail to deliver lasting economic value, while calling for greater public ownership and protection of government assets.

Minister of Power, Joseph Tegbe, said renewable energy had become an increasingly important component of Nigeria’s energy mix and disclosed plans to deploy mini-grids in areas facing transmission deficits.

He said the Federal Government was also conducting a technical audit of electricity infrastructure that is more than 42 years old, with plans to replace obsolete facilities with modern assets.

Tegbe said the government would optimise energy infrastructure by aggregating available energy resources and connecting them to areas with stronger demand.

He also said the administration would revisit the East-West supergrid project as part of efforts to strengthen the resilience of the national grid.

The Minister disclosed that the government is targeting 6,500MW of generation by year-end and 8,000MW by the end of 2026.

It also plans to revive 21 dormant dams, particularly those along the Sokoto-Badagry corridor, and put them to productive use.

“Public investment must be matched by discipline to protect the assets,” Tegbe said.

He directed the Ministry of Finance Incorporated (MOFI) to prioritise grid and transmission assets, clarifying that the objective was not to sell the infrastructure but to strengthen their balance sheets and improve utilisation.

REA Managing Director and Chief Executive Officer, Abba Aliyu, said RAMCO was designed to change the financing model for renewable-energy infrastructure by using existing assets to generate revenues and attract fresh capital.

“RAMCO will reduce Nigeria’s dependence on government budgets, sovereign borrowing, and development finance to expand electricity access,” Aliyu said.

He said mature renewable-energy projects could generate predictable cash flows that could be aggregated and leveraged to attract private investment into new infrastructure.

RAMCO would also allow capital tied up in operational renewable projects to be refinanced or recycled through commercial and regulatory structures, freeing liquidity for additional projects.

Beyond asset management, Aliyu said the initiative would support the development of local renewable-energy manufacturing capacity.

He disclosed that REA had entered into a joint development arrangement with MOFI and the Infrastructure Corporation of Nigeria (InfraCorp), alongside German manufacturers, to produce solar modules, batteries, inverters, street-lighting equipment and solar asset-recycling systems.

MOFI Managing Director, Armstrong Takang, said RAMCO could contribute to Nigeria’s ambition of building a $1 trillion economy by enabling the government to properly account for and monetise the value of public assets.

He said Nigeria needed to look beyond its debt profile and focus more on the productivity and revenue potential of its capital assets.

InfraCorp Managing Director, Lazarus Angbazo, described RAMCO as an opportunity to unlock asset-backed financing, credit enhancement and long-term institutional capital for renewable infrastructure.

He said infrastructure only creates economic value when it continues to function effectively after commissioning.

Budget Office Director-General, Tanimu Yakubu, also welcomed the initiative, saying RAMCO could provide investors with a transparent portfolio supported by lifecycle planning and credible performance monitoring.

The health sector is also expected to benefit.

Minister of State for Health and Social Welfare, Iziaq Salako, said 60 to 70 per cent of Nigeria’s public health facilities face severe power outages or energy poverty, while some teaching hospitals spend up to half of their operating budgets on diesel.

He said more than 30 per cent of solar systems installed in primary healthcare centres historically fail within three years, largely because of inadequate maintenance funding, spare parts and weak post-commissioning ownership.

Salako proposed treating health facilities as a distinct asset class under RAMCO, allowing commercial asset management principles to be applied to healthcare energy infrastructure.

He said the initiative could support the Federal Government’s Nigeria Power-for-Health Initiative, which targets providing electricity to at least 30 per cent of health facilities by the end of 2027.

For Nigeria’s power sector, RAMCO’s significance lies in shifting renewable infrastructure from a largely government-funded model towards one capable of attracting institutional and private capital.

The key test will be whether the new structure can turn existing solar and off-grid assets into bankable, income-generating investments, while improving reliability and freeing public funds for new electricity infrastructure.