- REA and Lotus Bank moved to create a dedicated renewable energy financing facility to scale clean energy deployment beyond pilot projects.
- The planned partnership will formalise financing through an MoU and aims to mobilise private capital to close Nigeria’s energy access gap.
The Rural Electrification Agency (REA) and Lotus Bank plan to establish a dedicated renewable energy financing facility under the Distributed Access through Renewable Energy Scale-up (DARES) programme. The move aims to shift the sector away from individual project financing toward a structured model that can scale clean energy deployment nationwide.
In a statement on Sunday, January 25, the Agency said the decision followed a high-level meeting between both institutions. The agency described the initiative as a major step toward accelerating electricity access in underserved and unserved communities.
Meanwhile, REA Managing Director Abba Aliyu urged Lotus Bank to adopt a bold funding strategy for the new facility. He said renewable energy financing must expand beyond pilot projects to achieve meaningful national impact. Aliyu also called for strong internal financing standards to enable developers to scale quickly.
Furthermore, Lotus Bank has financed several DARES-linked projects. The proposed arrangement will create a standalone financing window dedicated to renewable energy deployment.
The partnership also shows a growing shift among Nigerian financial institutions. More banks now treat renewable energy as a bankable commercial sector rather than a social intervention.
Both organisations are preparing to sign a Memorandum of Understanding to formalise the partnership. The MoU will unlock structured capital to speed up clean energy deployment in rural and peri-urban areas. The REA expressed optimism that the model will encourage other commercial banks to enter the sector and support private-sector-led energy access.