- LOTUS Bank Limited has signed a MoU with the REA to provide up to ₦100 billion in financing for renewable energy projects.
- The partnership aims to empower certified Renewable Energy Service Companies (RESCOs) and expand electricity access in underserved communities.
LOTUS Bank Limited has entered a strategic partnership with the Rural Electrification Agency (REA) to accelerate renewable energy deployment across underserved communities in Nigeria.
The parties signed a Memorandum of Understanding in Abuja. Under the agreement, LOTUS Bank will provide up to ₦100 billion in financing to certified Renewable Energy Service Companies (RESCOs). The funding will tackle one of the sector’s biggest challenges, limited access to capital.
At the signing ceremony, the bank’s Managing Director and Chief Executive Officer, Isiaka Ajani-Lawal, described the collaboration as mission-driven. He explained that the bank uses ethical, non-interest finance to support national development priorities.
Furthermore, Ajani-Lawal stated that the bank was founded not only to provide financing but also to build partnerships and promote shared prosperity. He added that the collaboration with REA and the DARES programme strengthens the bank’s commitment to sustainable development goals and financial inclusion.
Meanwhile, Abba Aliyu, Managing Director and Chief Executive Officer of REA, highlighted a key constraint. He noted that off-grid developers struggle to access financing. He stressed that partnerships with financial institutions remain essential.
The agreement will ease financing bottlenecks. It will also accelerate project delivery and boost private sector participation in Nigeria’s off-grid market. In addition, it aligns with the National Electrification Strategy and Implementation Plan. It also advances Sustainable Development Goal 7, which promotes affordable and clean energy for all.
For LOTUS Bank, the deal reinforces its strategy of expanding ethical and inclusive finance. Since its launch in 2021, the bank has positioned itself as a “bank for all.” It offers non-interest products tailored to individuals, women, youth and MSMEs. It also expands digital access and promotes financial literacy.
The agreement reflects growing collaboration between Nigeria’s financial sector and clean energy ecosystem, as stakeholders work to close the country’s electricity access gap.