The agreement, formalised on June 19 at FCMB’s headquarters in Lagos, is a cornerstone of the Distributed Access through Renewable Energy Scale-Up (DARES) initiative — a multi-billion naira programme designed to drive private sector-led expansion of decentralised energy systems.
Targeting more than two million households in underserved rural and peri-urban communities, the facility is expected to address the longstanding challenge of affordable finance for mini-grid developers and clean energy entrepreneurs.
Unlocking Private Capital for Public Impact
The initiative forms part of a broader strategy to complement the $750 million World Bank-backed DARES programme, which was recently approved by President Bola Ahmed Tinubu and falls under the supervision of the Federal Ministry of Power. The overall goal: extend electricity access to 17.5 million Nigerians.
Through the new facility, FCMB will offer revolving loans of ₦1 billion per eligible mini-grid developer, with an initial tenor of two years and options for expansion. These funds will help support the development of mini-grids and productive-use energy systems, such as cold storage for agriculture and power for small businesses — catalysing growth in off-grid areas.
The Managing Director/CEO of First City Monument Bank (FCMB), Mrs. Yemisi Edun, and the Managing Director/CEO of the Rural Electrification Agency (REA), Mr. Abba Aliyu, at the launch of FCMB’s ₦100 billion financing facility for the Distributed Access through Renewable Energy Scale-Up (DARES) project.
A Strategic Partnership for Inclusive Growth
REA Managing Director and CEO, Abba Abubakar Aliyu, described the collaboration as a “game-changer” in addressing financing gaps that have historically limited the pace of renewable energy projects in Nigeria.
“This partnership addresses one of the critical barriers to renewable energy scale-up—access to affordable finance. With this support, developers can scale faster and drive impactful electrification,” said Aliyu.
FCMB’s Managing Director and CEO, Yemisi Edun, reiterated the bank’s commitment to enabling inclusive development through sustainability-focused finance.
“Access to energy fuels enterprise, education, and better livelihoods. Our collaboration with REA is part of FCMB’s broader mission to support inclusive growth through sustainable financial solutions,” she said.
Deal Room Innovation and Risk Mitigation
A standout feature of the initiative is the establishment of a "Deal Room" — a dedicated platform for energy developers to engage with REA and FCMB on project structuring, eligibility requirements, and disbursement processes.
Under the financing structure, FCMB will fund up to 70% of approved project costs, while REA will backstop the loans through performance-based grants deposited in a reserve account. This risk-sharing model is expected to de-risk investments and attract additional private capital into the sector.
Toward a More Electrified Nigeria
With over 85 million Nigerians still lacking access to reliable electricity, the REA–FCMB partnership represents a timely and strategic intervention. By mobilising private capital for public good, it aligns financial institutions, government agencies, and energy developers toward a shared national priority — lighting up Nigeria, one community at a time.