The Federal Government has announced plans to replace over 42 years old power infrastructure with modern equipment within weeks.
The Minister of Power, Chief Joseph Tegbe, who disclosed this at the launch of Renewable Asset Management Company (RAMCO) in Abuja on Tuesday, stated that a technical audit is currently underway to assess the old facilities.
He explained that the replacement is aimed at improving electricity supply, reducing system failures and making the grid more stable for Nigerians.
According to him, the government is also working to increase power generation to 8,000 megawatts by 2026.
He added that the Federal Government will revisit the East-West supergrid project to build resilience into the national grid
He stated that 21 dormant dams will be put to productive use, noting that those identified along the Sokoto-Badagry expressway corridor will be made commercially viable.
“Public investment must be matched by discipline to protect the assets,” Tegbe stressed.
He further tasked the Ministry of Finance Incorporated (MOFI) with prioritizing grid and transmission assets, dispelling notions that these assets would be sold off and clarifying instead that they will be placed on a strong balance sheet to guarantee optimal utilization.
Speaking, the Chairman of the Rural Electrification Agency (REA), Ayodele Fayose, has described the Renewable Asset Management Company (RAMCO) as the best thing to happen to Nigeria’s electricity sector.
He lauded the REA Managing Director and his management team for upholding a legacy of continuity.
He noted that it is not enough to simply build new projects; their maintenance and operational continuity are equally critical.
Fayose also emphasized the need for a shift in public attitude, stating that infrastructure will last significantly longer when Nigerians adopt an ownership mindset and protect public utilities.
In his remarks, the Managing Director/CEO of the REA, Abba Aliyu, described RAMCO as the future of productive renewable energy asset utilization.
He highlighted institutional continuity across both the Ministry and the Agency as the foundation for bringing the initiative to fruition.
He explained that RAMCO will not burden the national treasury, but will instead unlock fresh private capital and revenue streams to ensure the long-term sustainability of off-grid infrastructure.
“RAMCO will reduce Nigeria’s dependence on government budgets, sovereign borrowing, and development finance to expand electricity access,” Aliyu said.
Aliyu said the new model would also enable existing renewable energy assets to generate predictable revenues that could be aggregated and potentially leveraged to attract private capital for additional infrastructure.
He added that RAMCO will enable capital deployed into mature renewable energy assets to be refinanced or recycled under robust commercial and regulatory frameworks, freeing up liquidity for new projects.
Aliyu added that RAMCO would support Nigeria’s efforts to develop local renewable energy manufacturing capacity.
He said REA had entered into a joint development arrangement with MOFI and InfraCorp involving German manufacturers for the production of solar modules, batteries, inverters, street lighting equipment and solar asset recycling.
Also speaking, the Managing Director/CEO of MOFI, Dr. Armstrong Takang, highlighted the critical role RAMCO will play in actualizing Nigeria’s target of a one-trillion-dollar economy.
He explained that the country must look beyond its debt profile and properly account for its capital assets to boost public revenue and enhance fiscal transparency.
The Managing Director of InfraCorp, Dr. Lazarus Angbazo, praised RAMCO as a landmark achievement of collaboration adding that a portfolio of well-managed assets will unlock asset-backed financing, credit enhancement, and long-term institutional capital.
“Infrastructure does not create value simply because it has been commissioned; it creates value because it continues to work.”
“RAMCO exists to provide stewardship of Nigeria’s renewable energy assets by maintaining, optimizing, and restoring underperforming systems so they continue to deliver services. It represents a major opportunity for the private sector and will cultivate a competitive renewable energy economy,” Angbazo stated.
The Director-General of the Budget Office of the Federation, Tanimu Yakubu, also welcomed the initiative.
He noted that RAMCO provides investors with a transparent portfolio backed by sound lifecycle planning and credible performance tracking, firmly positioning Nigeria as a serious destination for global renewable energy investments.
In his remarks, the Minister of State for Health and Social Welfare, Dr. Iziaq Adekunle Salako, described reliable electricity as a non-negotiable clinical input critical to saving lives, powering neonatal incubators, operating theatres, and cold-chain vaccine storage.
Highlighting that between 60 and 70 percent of Nigeria’s public health facilities face severe outages or complete energy poverty with teaching hospitals spending up to half their operating budgets on diesel, Dr. Salako hailed RAMCO as the missing operational link needed to fulfill the presidential Nigeria Power-for-Health Initiative, which aims to electrify at least 30 percent of health facilities by the end of 2027.
He explained that over 30 percent of solar systems installed in Primary Health Care Centres historically fail within three years due to a lack of maintenance budgets, spare parts, and post-commissioning ownership.
To address this, he proposed four key synergies: designating health facilities as a distinct asset class within RAMCO, integrating RAMCO’s commercial asset management with hospital-level energy teams, unifying energy audit data, and directing a portion of recycled capital to aggregate and sustain off-grid primary healthcare centers.
