KEY POINTS
- Massive Funding: The Rural Electrification Agency (REA) and Lotus Bank have signed an MoU for a N100 billion revolving credit facility to expand renewable energy in unserved and underserved communities.
- Developer Support: The facility offers up to N8 billion per developer with an 18-month tenure and provides up to 90% counterpart funding for approved projects.
- Program Alignment: This partnership supports the Distributed Access to Renewable Energy (DARES) program, a World Bank-backed scale-up of the Nigeria Electrification Project (NEP).
MAIN STORY
The Rural Electrification Agency (REA) and Lotus Bank have entered into a strategic partnership to eliminate the financial hurdles facing renewable energy developers in Nigeria. Under a Memorandum of Understanding (MoU) signed in Abuja, Lotus Bank is providing a N100 billion revolving credit facility specifically designed to help developers acquire essential equipment for clean energy projects.
The move aims to bridge the energy access gap in rural areas by providing the necessary liquidity and advisory tools to move projects from the planning stage to execution.
This collaboration is a key component of the Distributed Access to Renewable Energy (DARES) program, which builds upon the successes of the Nigeria Electrification Project (NEP) to increase private sector-led electricity access. To ensure the financial sustainability and technical quality of these projects, the REA will handle technical oversight, including pre-qualifying developers and utilizing Independent Verification Agents (IVAs), while Lotus Bank will deploy a dedicated collection platform and international trade tools to streamline equipment delivery and payment.
Abba Aliyu, Managing Director of REA, highlighted that the N100 billion facility directly tackles the “debt financing bottleneck” that has historically stalled rural electrification. Similarly, Isiaka Ajani-Lawal, Managing Director of Lotus Bank, noted that the initiative is designed to foster financial inclusion and support the micro, small, and medium enterprises (MSMEs) that form the backbone of the rural economy. By reducing financial risks and project timelines, the partnership seeks to accelerate Nigeria’s transition to a sustainable, clean energy future.
WHAT’S BEING SAID
- “By securing the N100 billion credit facility, we are directly addressing the debt financing bottleneck that has historically hindered project developers.” — Abba Aliyu, MD/CEO of REA.
- “This initiative is not just about power; it is about improving lives and supporting the MSMEs that drive our economy.” — Isiaka Ajani-Lawal, MD of Lotus Bank.
- The REA statement emphasized that the partnership: “Strengthens the institutional framework for energy financing… ensuring that private sector participation is backed by robust capital.”
WHAT’S NEXT
- The REA will begin the process of vetting and pre-qualifying mini-grid developers for the first round of the N100 billion facility.
- Lotus Bank is expected to roll out its collection and trade tool platforms to assist developers with equipment importation and revenue management.
- Independent Verification Agents (IVAs) will be deployed to confirmed project sites to validate connections before final grant disbursements are triggered.
BOTTOM LINE
The Bottom Line is that the REA and Lotus Bank partnership provides a critical N100 billion lifeline for Nigeria’s off-grid sector. By combining technical oversight with massive debt financing and specialized trade tools, the initiative aims to transform rural electrification from a series of pilot projects into a commercially viable and scalable industry.
 and Lotus Bank have entered into a strategic partnership to eliminate the financial hurdles facing renewable energy developers in Nigeria. Under a Memorandum of Understanding (MoU) signed in Abuja, Lotus Bank is providing a N100 billion revolving credit facility specifically designed to help developers acquire essential equipment for clean energy projects.){kind=link}