Nigeria must go beyond building renewable energy projects and focus on the professional management, maintenance and financing of those assets throughout their economic life, the Infrastructure Corporation of Nigeria (InfraCorp) has said.
The Managing Director and Chief Executive Officer of InfraCorp, Dr Lazarus Angbazo, said this at the launch of the Renewable Asset Management Company (RAMCO) by the Rural Electrification Agency (REA) in Abuja on Wednesday.
Angbazo said the real economic life of an infrastructure project begins after commissioning, adding that Nigeria must build systems that ensure renewable energy assets continue to perform, generate revenue and create value for decades.
According to him, the country must move from asking simply what infrastructure it has built to asking how well the assets are performing, who is responsible for them and how they will be maintained and renewed.
He said the issue was especially important for renewable energy infrastructure deployed across universities, teaching hospitals, public institutions and communities under various government programmes.
“These are extremely important national investments and deserve to be celebrated. They support learning, healthcare, public services and economic activity,” he said.
“But for every dollar or naira invested in these assets, there is a corresponding obligation to preserve and maximise their value. And that is precisely why RAMCO now exists.”
Angbazo explained that infrastructure has a life cycle that extends beyond construction and commissioning, with assets requiring continuous monitoring, preventive and corrective maintenance, revenue assurance, investment and eventual renewal.
He said RAMCO was designed to institutionalise those responsibilities and provide a professional asset-management structure for renewable energy infrastructure.
The InfraCorp boss said the model would combine the strengths of REA, the Ministry of Finance Incorporated (MOFI) and InfraCorp.
He said REA brings technical expertise and knowledge of renewable energy programmes and beneficiaries, MOFI brings experience in ownership and professional management of Federal Government assets, while InfraCorp provides the capacity to structure bankable projects and mobilise long-term capital.
“These are distinct capabilities, and that is precisely the strength of the RAMCO model,” he said.
According to him, strong infrastructure requires technical competence, but sustainability depends on technical, commercial, financial and governance capabilities working together.
Angbazo also said RAMCO could create opportunities for private-sector participation in Nigeria’s renewable energy market.
He noted that the country’s renewable energy economy would require more than solar projects, but also energy service companies, operations and maintenance providers, battery-storage specialists, digital monitoring companies, engineering firms, equipment manufacturers, technology companies, insurance providers, financial institutions and entrepreneurs.
He said a structured national platform could help the ecosystem grow and support a globally competitive renewable energy market in Nigeria.
The InfraCorp chief executive also stressed the need to create conditions that would make renewable energy assets attractive to investors.
“Capital does not invest simply because infrastructure is important. Capital invests when assets are identifiable, performance is measurable, revenues are credible, governance is strong, risks are understood and returns are reasonable,” he said.
He said a portfolio of well-managed renewable energy assets could unlock refinancing, asset-backed financing, credit enhancement and other mechanisms for mobilising long-term institutional and private capital.
Angbazo said the goal should be to create bankable infrastructure rather than relying on government support for every private investment.
He added that RAMCO could help establish a cycle in which existing renewable energy assets are professionally managed and potentially refinanced, allowing capital to support new infrastructure projects.
“Today’s investments can help finance tomorrow’s projects,” he said.
He warned, however, that the launch of RAMCO was only the beginning, stressing that success must ultimately be measured by the performance of the assets entrusted to it.
“The real test of RAMCO will not be how successful today’s launch is. The real test will be whether, five years from today and 10 years from today, the renewable energy assets entrusted to this platform are working better, lasting longer, serving more Nigerians, attracting more private investment and preserving more public value because RAMCO exists,” he said.
Angbazo said the initiative could show that Nigeria was capable not only of building infrastructure, but also of managing, preserving and making it investable over its entire economic life.
The Federal Government formally launched RAMCO in Abuja on Wednesday as an institutional platform for managing Nigeria’s renewable energy infrastructure assets and improving their long-term sustainability. The initiative is a partnership involving REA, MOFI and InfraCorp.
REA had earlier described RAMCO as a specialised platform for the professional management, optimisation and long-term sustainability of renewable energy assets, with the broader objective of connecting renewable infrastructure with long-term private capital.