The Rural Electrification Agency (REA) and Lotus Bank have announced a major step forward in their partnership to expand energy access across Nigeria, shifting from individual project support to a large-scale, dedicated financing framework.
The decision followed a high-level meeting on Wednesday, during which both institutions agreed to transition the collaboration under the Distributed Access through Renewable Energy Scale-up (DARES) programme into a more structured and sustainable financing model.
While Lotus Bank has previously supported specific projects under the DARES initiative, the new phase will see the bank establish a dedicated DARES financing facility to provide broader, long-term capital support.
During the engagement, REA Managing Director Dr. Abba Aliyu urged the bank’s leadership to adopt a bold approach by setting a clear global funding target for the facility. He also stressed the importance of strong internal standards and a framework designed to enable developers to scale their operations efficiently.
“That level of intentionality is exactly what the sector needs if we’re serious about moving from pilots to impact at scale,” Dr. Aliyu said.
The shift reflects a growing trend among Nigerian financial institutions increasingly recognising renewable energy as a bankable and commercially viable sector, rather than solely a social intervention.
Both parties are now working toward signing a formal Memorandum of Understanding (MoU) to institutionalize the partnership. The agreement is expected to outline the funding structure and operational guidelines necessary to accelerate the deployment of clean energy solutions to underserved and unserved communities nationwide.
REA officials say the collaboration could serve as a blueprint for other commercial banks, helping to drive private-sector-led investment needed to bridge Nigeria’s persistent energy deficit.