Rural Electrification Agency (REA) and Lotus Bank are taking steps to unlock large-scale financing for renewable energy access across Nigeria, marking a strategic shift in how both institutions work together.
Following a high-level meeting held as part of their partnership, the two organisations announced plans to move from project-based support to a large-scale, dedicated financial framework focused on clean energy deployment.
Discussions at the meeting centred on the Distributed Access through Renewable Energy Scale-up (DARES) programme. Lotus Bank has already supported individual renewable energy projects under the initiative, but the next phase of collaboration will see the bank establish its own dedicated DARES financing facility to support wider access.
During the engagement, the Managing Director of the REA, Dr Abba Aliyu, urged the bank’s leadership to “adopt a bold approach” by setting a clear global funding target for the proposed facility. He also stressed the importance of strong internal standards and a financing structure that allows developers to scale their operations quickly.
The development reflects a growing shift among Nigerian financial institutions that are beginning to see renewable energy as a bankable and commercially viable sector, rather than only a social intervention.
Both organisations confirmed that they are working towards the signing of a formal Memorandum of Understanding (MoU) to institutionalise the partnership. The agreement is expected to provide structured capital that will speed up the deployment of clean energy solutions to underserved and unserved communities across the country.
REA said it remains optimistic that the partnership will serve as a model for other commercial banks and help bridge Nigeria’s energy gap through sustainable, private-sector-led investment across Nigeria nationwide efforts.
