Renewable Energy: REA, Lagos Sign $150m Pact for Lithium Battery Plant, Others

In a major move toward boosting Nigeria’s renewable energy capacity, the Rural Electrification Agency (REA) has signed a Memorandum of Understanding (MoU) with the Lagos State Government to establish a $150 million lithium battery assembly plant in the state.

The agreement, sealed during a renewable energy roundtable held on Monday in Victoria Island, Lagos, is part of the federal government’s broader push to decentralise power generation and improve energy access across the country, particularly under the new 2023 Electricity Act.

According to a statement by the REA on Wednesday, the initiative is a strategic component of the agency’s State-by-State Initiative, aimed at strengthening local manufacturing and accelerating rural electrification.

“This partnership addresses the pressing need to reduce Lagos State’s dependence on over four million diesel generators by introducing distributed, sustainable energy solutions,” the agency stated.

Key Projects Unveiled

The agreement includes a suite of projects aimed at reshaping the state’s energy landscape:

• $150 million Lithium Battery Assembly Plant to be located at the Lekki Free Trade Zone

• Nigeria’s first Floating Solar PV Plant (8MW) to power Lagos State University

• Establishment of a Renewable Energy University to support capacity building and innovation

Speaking at the signing, Lagos State Deputy Governor, Dr. Obafemi Hamzat, who represented Governor Babajide Sanwo-Olu, praised the collaboration as vital to solving the state’s energy distribution imbalance.

“We have excess power generation in Nigeria, but it’s misdirected and unevenly distributed. This partnership with REA will help bridge that gap,” Dr. Hamzat noted.

Scaling Innovation and Local Capacity

REA’s Managing Director/CEO, Abba Abubakar Aliyu, emphasized that the initiative would also advance national programmes such as the:

• National Public Sector Solarization Initiative (NPSSI)

• Distributed Access through Renewable Energy Scale-Up (DARES), supported by the World Bank

“We are fostering collaboration, building local manufacturing capacity, and driving innovation to ensure sustainable energy access for all Nigerians,” Aliyu stated.

The REA, an agency under the Federal Ministry of Power, is tasked with electrifying unserved and underserved communities across the country to spur inclusive growth.

Currently, it implements several flagship programs including:

• Rural Electrification Fund (REF)

• Nigeria Electrification Project (NEP)

• Energizing Education Programme (EEP)

• Energizing Economies Initiative (EEI)

• Energizing Agriculture Programme (EAP)

• Energy for All – Mass Rural Electrification

This partnership with Lagos is seen as a model for state-level collaboration in Nigeria’s clean energy transition.