Rural Electrification Agency (REA) and Lotus Bank are moving to unlock large-scale financing for renewable energy access across Nigeria, marking a strategic shift in their collaboration from project-based support to a dedicated financial framework.

Following a high-level meeting during their partnership, the two institutions announced plans to transition 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.

During the session, the Managing Director of the REA, Dr Abba Aliyu, challenged the bank’s leadership to adopt a bold approach by setting a clear global funding target for the facility. The agency emphasised the need for strong internal standards and a design that prioritises the ability of developers to scale their operations quickly.

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.

Both organisations are now working toward the signing of a formal Memorandum of Understanding (MoU) to institutionalise 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.

REA mentioned that it 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.