By The Federal Government, through 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. The project will be located in the Lekki Free Trade Zone and is aimed at boosting local manufacturing and accelerating access to renewable energy.
The deal, sealed during a roundtable event in Victoria Island on Monday, is part of REA’s State-by-State Initiative under the 2023 Electricity Act, which seeks to expand sub-national energy access. Officials say the plant will play a key role in reducing reliance on over four million diesel generators currently in use across Lagos.
Speaking at the event, Lagos State Deputy Governor Dr. Obafemi Hamzat, who represented Governor Babajide Sanwo-Olu, emphasized the significance of the partnership. “We have excess power generation—but it’s misdirected and not evenly distributed. This collaboration with REA will help bridge that gap,” he said.
REA’s managing director, Abba Abubakar Aliyu, outlined additional plans under the agreement, including Nigeria’s first 8MW floating solar PV plant to power Lagos State University and the creation of a Renewable Energy University to build local expertise. He noted that these projects reflect the government’s broader push for clean, decentralized energy.
Aliyu also mentioned the agreement supports ongoing programs like the National Public Sector Solarization Initiative (NPSSI) and the World Bank-backed Distributed Access through Renewable Energy Scale-up (DARES). “We are building a robust market for Renewable Energy Service Companies and empowering local developers,” he stated.
The REA, an agency under the Federal Ministry of Power, remains focused on bringing electricity to underserved communities through initiatives such as the Nigeria Electrification Project, Energizing Economies Initiative, and the Energizing Education Programme.
