Nigeria’s Rural Electrification Agency (REA) and Lotus Bank are set to deepen private-sector financing for clean energy access, following plans to launch a dedicated renewable energy funding facility aimed at accelerating electrification across underserved communities.
The decision emerged from a high-level engagement held on recently, where both institutions agreed to move beyond ad-hoc, project-based financing toward a structured, large-scale financial framework for renewable energy deployment.
Discussions centred on the Distributed Access through Renewable Energy Scale-up (DARES) programme, a flagship initiative designed to expand off-grid and decentralized power solutions nationwide. While Lotus Bank has previously supported individual DARES-aligned projects, the new approach will see the bank establish its own standalone financing facility dedicated to the programme.
Managing Director of the REA, Dr Abba Aliyu, used the session to urge the bank to adopt an ambitious global fundraising target for the facility, stressing the need for strong internal standards that enable developers to scale rapidly.
“That level of intentionality is exactly what the sector needs if we’re serious about moving from pilots to impact at scale,” Aliyu said.
The shift signals a broader change within Nigeria’s financial sector, as more commercial banks begin to view renewable energy not only as a development intervention but as a commercially viable investment opportunity with long-term returns.
Both organisations are now working toward the signing of a Memorandum of Understanding (MoU) to formalise the partnership. Once concluded, the agreement is expected to unlock structured capital flows to support faster deployment of clean energy solutions in unserved and underserved areas.
The REA expressed optimism that the collaboration would set a precedent for other financial institutions, helping to mobilise private capital at scale and close Nigeria’s persistent energy access gap through sustainable investment.
