REA, Lotus Bank to launch dedicated renewable energy financing facility
Sopuruchi Onwuka
The Rural Electrification Agency (REA) and Lotus Bank have agreed to deepen their collaboration on renewable energy financing in Nigeria, marking a shift from project-based support to a structured, large-scale funding framework.
The decision followed a high-level meeting held on Wednesday, where both institutions reviewed progress under the Distributed Access through Renewable Energy Scale-up (DARES) programme.
Lotus Bank, which has already supported individual DARES projects, will now establish a dedicated financing facility focused exclusively on renewable energy development under the programme. The move is expected to improve access to capital for developers and enable faster project expansion across underserved and unserved communities.
During the meeting, REA Managing Director, Dr Abba Aliyu, urged the bank to adopt a more ambitious approach by setting a clear global funding target for the new facility. He also emphasized the importance of strong internal standards and a financing structure that allows developers to scale quickly.
“That level of intentionality is exactly what the sector needs if we’re serious about moving from pilots to impact at scale,” Aliyu said.
The partnership reflects a broader shift within Nigeria’s financial sector, where renewable energy is increasingly being recognized as commercially viable rather than solely a social intervention.
Both parties are now working toward signing a Memorandum of Understanding to formalize the arrangement. The agreement is expected to unlock structured capital to accelerate the deployment of clean energy solutions nationwide.
REA expressed confidence that the initiative will serve as a model for other commercial banks and help mobilize private-sector investment to address Nigeria’s energy access gap.
