By Ojugbele Omotunde
President, Renewable Energy Association of Nigeria (REAN), Mr. Ayo Ademilua has disclosed that no fewer than $80 million is available for energy projects for its members through investors.
He said this during the Renewable Energy Investment Matchmaking event on Wednesday in Lagos.
The subject for the Renewable Energy Investment Matchmaking is “Connecting Investors To Transformative Renewable Energy Projects: Energizing Partnerships.”
He claims that the numerous renewable energy resources Nigeria has to offer can be efficiently utilized by REAN members’ promising initiatives to meet the country’s energy concerns.
But to see these initiatives through to completion, he continued, these developers need cash.
He explained that the purpose of the event was to close this gap by acting as a central point of contact for developers and various investors interested in funding the clean energy industry.
Ademilua also mentioned the support given by a number of commercial institutions, including First Bank, Sterling Bank, and Stanbic Bank, in addition to investor involvement.
Some, he noted, were stakeholders and multilateral investors who have demonstrated a strong desire to make investments in the field of renewable energy.
“Therefore, by working with all of these investors, we have been able to pool between $80 and $100 million that is accessible to members of REAN for energy projects in Nigeria.
“For example, Stanbic Bank is investing N30 billion with a single obligor of N1 billion, and AllOn has $25 million to spend in energy projects with a single obligor of $2.5 million.
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“I will counsel members and developers to seize this chance to address the issue of power in our nation,” he said.
The president pointed out that one of the biggest obstacles to receiving funding from investors was a lack of understanding of how to appropriately evaluate and react to financial data from financiers.
“Our members’ inability to understand finance has primarily prevented them from taking advantage of the funds available in the industry,” he stated.
According to Ademilua, a collaboration with AllOn has produced a way to alleviate this bottleneck by granting access to 30 REAN members to an incubation hub called AllOn Hub.
Members will be able to build their corporate structures, receive assistance with corporate governance, and find a way to get over obstacles that stand in the way of their ability to acquire funding thanks to this center.They will be able to access the monies that the investors at the table are contributing with the aid of the hub.
“We want to see our developers finish their projects and close out on their projects,” he stated.
The president praised the Federal Government’s effort to enhance power in Nigeria by enacting the Electricity Act 2023.
In order to increase energy availability, he said that the act will decentralize and enable parties and developers to generate electricity across the nation in a decentralized manner.
He declared, “Our goal at REAN is to use our work to promote clean energy and energy generation in Nigeria.”
According to Ademilua, developers in Nigeria as well as those around Sub-Saharan Africa and the rest of the world who could take use of it, had an exciting opportunity with the Electricity Act.
“The act aims to expedite energy access across the country, both on-grid and off-grid, by implementing decentralised generation. This eliminates transmission grid issues and allows power plants to operate within a state, improving power distribution,” he said.
The president emphasized the act’s integration into the Nigerian Energy Transition plan, aiming for net zero by 2060, stating that all policies and frameworks are working towards a better Nigeria.
