The Rural Electrification Agency (REA) and Lotus Bank have reached a strategic milestone in their collaboration to deepen financing for energy access across Nigeria, according to a statement on Sunday.
It stated that following a recent high-level meeting, the two institutions announced plans to transition from project-based support to a large-scale, dedicated financial framework.
It added that the engagement focused on the Distributed Access through Renewable Energy Scale-up (DARES) programme.
According to the statement, 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.
The Managing Director of the REA, Dr Abba Aliyu, during the session,challenged the bank’s leadership to adopt a bold approach by setting a clear global funding target for the facility.
He emphasized 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.”
The statement noted that the shift reflects 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.
It noted that 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.
“The 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 statement added.
