The President of the Renewable Energy Association of Nigeria (REAN), Mr. Ayo Ademilua, has revealed that there are substantial funds amounting to approximately $80 million available for energy projects in Nigeria through various investors. Ademilua made this announcement during the Renewable Energy Investment Matchmaking event held in Lagos with the theme “Energising Partnerships: Connecting Investors to Transformative Renewable Energy Projects.” The event, sponsored by AllOn in partnership with REAN, served as an investment matchmaking platform.
According to Ademilua, REAN members have viable projects that can effectively address Nigeria’s energy challenges by utilising the abundant renewable energy resources within the country. However, these developers require financial support to bring their projects to fruition. The event facilitated connections between developers and multiple investors interested in the clean energy sector.
Ademilua also highlighted the support from commercial banks like First Bank, Sterling Bank, and Stanbic Bank, as well as multilateral investors and stakeholders showing keen interest in investing in renewable energy.
In his words, “So, aggregately, we have been able to pool about 80 to 100 million dollars that is available for energy projects in Nigeria to members of REAN through all these investors. For instance, AllOn has got 25 million dollars for investment in energy projects with a single obligor of $2.5 million, Stanbic Bank is onboard with N30 billion with a single obligor of one billion Naira, among others. So, I will advise members and developers to take advantage of this opportunity to solve the problem of power in our country.”
He noted that a major challenge in accessing funds from investors was the lack of financial knowledge among members. To address this, a partnership with AllOn has resulted in the establishment of an incubation hub (AllOn Hub) that will provide support to 30 REAN members. The hub will assist in developing corporate structures, enhancing corporate governance, and bridging the gaps that hinder access to funds.
Ademilua commended the Federal Government’s initiative through the Electricity Act 2023, which aims to improve power generation in Nigeria. He pointed out that the act would decentralise power generation, allowing developers to generate electricity in a decentralised manner, thereby expanding energy access across the country.
In his closing remarks, Ademilua expressed his enthusiasm for the act, emphasising its potential to accelerate energy access and enhance the Nigerian Energy Transition plan aiming for net zero emissions by 2060. He stated, “So, I believe that all these policies, frameworks, and the act are working together towards a better Nigeria to light up the space.”