New financing facility to boost access to renewable energy

Lotus Bank and Rural Electrification Agency (REA) have reached agreement to collaborate on deepening financing for energy access across Nigeria.

The agreement followed a high-level meeting between the bank and REA where the institutions decided to scale up financing from project-based support to a large-scale, dedicated financial framework.

The engagement focused on the Distributed Access through Renewable Energy Scale-up (DARES) programme.

While Lotus Bank has already been active in supporting individual projects under this initiative, the new phase of the partnership will see the bank establish its own dedicated DARES financing facility.

Managing Director, Rural Electrification Agency (REA), Dr Abba Aliyu challenged the bank’s leadership to adopt a bold approach by setting a clear global funding target for the facility.

He emphasised the need for strong internal standards and a design that prioritizes the ability of developers to scale their operations quickly.

He said: “That level of intentionality is exactly what the sector needs if we’re serious about moving from pilots to impact at scale”.

He said REA remains optimistic that this collaboration will serve as a model for other commercial banks, building the necessary momentum to bridge Nigeria’s energy deficit through sustainable, private-sector-led investment.

The shift reflected a growing trend among forward-thinking Nigerian financial institutions that are increasingly viewing renewable energy as a bankable and commercially viable sector rather than strictly a social good.

Both organizations are now working toward the signing of a formal Memorandum of Understanding (MoU) to institutionalize the partnership.

This agreement is expected to provide the structured capital necessary to accelerate the deployment of clean energy solutions to underserved and unserved communities nationwide.