- REA and Lotus Bank plan to create a dedicated renewable energy funding under the DARES programme
- The partnership shifts financing from isolated projects to a structured, large-scale framework
- Both institutions are working toward signing an MoU to formalise the collaboration
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Rural Electrification Agency (REA) has entered a partnership with Lotus Bank to expand renewable energy financing in Nigeria, with plans to establish a dedicated funding facility under the Distributed Access through Renewable Energy Scale-up (DARES) programme.
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According to a statement issued by the REA on Sunday, the move followed a high-level meeting between both organisations and signals a shift from project-by-project funding to a structured financing framework aimed at accelerating energy access nationwide.
The agency said the proposed facility is designed to support large-scale deployment of clean energy solutions, particularly in underserved and unserved communities.
REA proposes global funding
Speaking during the engagement, REA Managing Director Abba Aliyu called on Lotus Bank to adopt a deliberate approach by setting a clear global funding target for the initiative.
Aliyu said Nigeria’s energy transition would only deliver meaningful results if financing moves beyond pilot projects to enable renewable energy developers to rapidly scale operations.
He added that the new facility must be backed by strong internal standards and a structure that allows developers to expand quickly across rural and peri-urban areas.
“That level of intentionality is exactly what the sector needs if we are serious about moving from pilots to impact at scale,” Aliyu said.
Lotus Bank, which has already supported several DARES-related projects, is expected under the new arrangement to formalise its commitment by creating a standalone financing window dedicated to renewable energy deployment.
The REA noted that both organisations are currently working toward signing a Memorandum of Understanding (MoU) to formalise the partnership.
The agreement is expected to unlock structured capital capable of significantly accelerating clean energy rollout across the country.
The agency also described the collaboration as part of a growing trend among Nigerian financial institutions, which are increasingly viewing renewable energy not only as a social intervention but as a commercially viable sector.
REA expressed optimism that the initiative would serve as a model for other commercial banks, helping to mobilise private-sector investment and close Nigeria’s energy access gap through sustainable financing.
Lagos to establish assembly, renewable energy school
Legit.ng reported earlier Lagos State government has pledged to build a $150 million lithium battery assembly plant at the Lekki Free Trade Zone in response to the erratic electricity supply that has severely damaged businesses in the state.
This is in reaction to the unpredictable electrical supply that has caused significant harm to the state’s companies.
To expand access to renewable energy in Lagos State governor Babajide Sanwo-Olu also inked an MOU with the Rural Electrification Agency.
Source: Legit.ng
