REA, Alpha Morgan Bank Seal N50bn Deal to Fund Renewable Energy Projects in Nigeria
$119m Japanese financing expected for mini-grids, says Aliyu Bank: It’s an attempt to generate measurable economic and social impact Emmanuel Addeh in Abuja The Rural Electrification Agency (REA) and Alpha Morgan
The Rural Electrification Agency (REA) and Alpha Morgan Bank have signed a N50 billion financing agreement to support renewable energy projects and improve electricity access across unserved and underserved communities in Nigeria. This partnership was signed during a Memorandum of Understanding (MoU) ceremony in Abuja, with the REA's Managing Director, Abba Aliyu, emphasizing the need for this collaboration due to the country's rapidly growing electricity demand.
Aliyu highlighted that Nigeria's population is expanding at a faster rate than the pace of electrification, leading to a widening gap between the need for electricity and the rate at which it is being provided. He stressed that renewable energy, particularly solar, would remain a crucial component in meeting the growing demand due to falling generation costs and advances in battery storage technology.
The managing director of the REA also revealed that the funding requirement for addressing Nigeria's electricity access and reliability challenges is estimated to be about $23 billion, while only less than $2.5 billion is currently available. Consequently, additional financing of $119 million from the Japan International Cooperation Agency (JICA) has been secured to support interconnected and isolated mini-grid projects.
Alpha Morgan Bank's Managing Director, Ade Buraimo, said the bank's involvement in the partnership was driven by the need to address the power sector's insufficient financing structures, which heavily impact people and businesses.
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