The Nigerian energy sector is seeing significant progress, with banks increasingly willing to finance renewable energy projects.
At the Lagos Energy Summit 2025, REA MD Abba Aliyu highlighted the growing support from financial institutions but urged private-sector players to refine their business proposals to meet banking expectations. Aliyu confirmed that banks are ready to fund renewable energy initiatives, based on his firsthand insight into ongoing transactions.
Despite banks’ readiness to finance renewable energy projects, many business proposals from private companies fail to meet financial standards, often lacking alignment between business plans and financial statements. REA MD Abba Aliyu emphasized the need for comprehensive plans that meet banks’ criteria.At the same event, Dr. Lateef Akanji, a Chartered Petroleum Engineer, highlighted Nigeria’s critical energy challenges, including only 33% of the population having access to electricity and power shortages causing annual economic losses of $26.2 billion.
While Nigeria has abundant energy resources, the country faces energy poverty, limited growth, and climate issues. He praised Lagos State for its clean energy initiatives and recommended addressing the skills gap in the renewable energy sector through training and capacity-building programs.Dr. Lateef Akanji emphasized the need for green bond initiatives and upfront capital investment to boost energy investments.
Engr. (Dr.) Oluwaseun Fadare, Commissioner at the Lagos State Electricity Regulatory Commission, stressed the importance of enforcing maintenance through strategic policies, penalties for non-compliance, incentives for excellence, public reporting, capacity building, and an independent regulatory body to ensure accountability in the energy sector.
Dr. Fadare emphasized that combining mandatory standards, technology, incentives, and penalties can ensure proper maintenance and long-term sustainability in the energy sector.Meanwhile, the Rural Electrification Agency (REA) recently received approval to establish a renewable asset management company aimed at sustaining its electrification projects.
Announced by REA MD Abba Aliyu during an agreement signing with eight Renewable Energy Service Companies, the new entity will manage and maintain renewable infrastructure worth nearly $500 million, deployed across Nigerian universities.Aliyu announced that President Bola Tinubu has approved N100 billion for REA to implement the National Public Sector Solarisation Project, aimed at cutting governance costs by transitioning public institutions to solar energy.
