- Under the DARES initiative, REA and FCMB launched a ₦100bn facility to finance mini-grid projects and power two million underserved homes.
- FCMB will offer ₦1bn loans per developer, with REA grants de-risking investments to boost private sector participation.
The Rural Electrification Agency (REA) and First City Monument Bank (FCMB) have signed a landmark ₦100 billion renewable energy financing agreement to expand electricity access across Nigeria.
The partnership, formalised on Thursday, June 19, at FCMB’s headquarters in Lagos, will support the Distributed Access through Renewable Energy Scale-Up (DARES) initiative, a World Bank-supported programme aimed at fast-tracking sustainable and inclusive power solutions.
The financing facility will also enable the deployment of decentralised renewable energy projects, delivering reliable electricity to around two million households nationwide in unserved and underserved areas.
According to a statement from REA, this agreement marks a significant shift toward private sector investment in Nigeria’s off-grid energy space. It builds on the $750 million DARES funding secured through the World Bank, with implementation support from the Federal Ministry of Power and approval by President Bola Tinubu.
Meanwhile, as part of the deal, FCMB will offer a revolving loan facility of ₦1 billion per eligible mini-grid developer for two years, with options to scale up. These loans will provide critical working capital for developers under REA’s DARES programme, which supports the rollout of interconnected and isolated mini-grids and productive-use applications in rural and peri-urban areas.
Meanwhile, at the signing ceremony, REA Managing Director/CEO Abubakar Aliyu described the agreement as a turning point in renewable energy development.
“This partnership addresses one of the biggest challenges in decentralised energy deployment—access to finance,” he said. “With this facility, developers can scale their operations and meet national electrification targets. It’s a step forward in improving the quality of life for millions.”
Also speaking, FCMB Managing Director Yemisi Edun reaffirmed the bank’s commitment to inclusive development.
“Our partnership with REA marks a pivotal step in powering inclusive growth across Nigeria,” Edun stated. “Reliable energy access drives education, entrepreneurship, and better living standards. By combining financial innovation with infrastructure delivery, we ensure underserved communities are not left behind.”
A significant launch highlight was introducing a “Deal Room”, a dedicated platform where project developers can engage directly with REA and FCMB on project financing, structure, and disbursement. This platform will clarify eligibility criteria, help developers understand evaluation procedures, and streamline access to funding.
Under the agreement, FCMB will finance up to 70% of approved project costs, while REA will deposit performance-based grant payments into a reserve account within the bank to help de-risk the transactions for developers.
This partnership signals a new era in Nigeria’s clean energy journey, combining public sector leadership with private sector investment to reach millions of Nigerians still living without reliable electricity.