The Rural Electrification Agency (REA) and Lotus Bank have reached a strategic milestone in their collaboration to deepen financing for energy access across Nigeria.
Following a high-level meeting on Wednesday, the two institutions announced plans to transition from project-based support to a large-scale, dedicated financial framework.
This engagement focused on distributed access through the Renewable Energy Scale-up (DARS) 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 set up its own dedicated DARES financing facility.
During the session, REA Managing Director, Abba Aliyu, challenged the Bank's leadership to take a bold approach by setting a clear global funding target for the Facility.
The agency stressed the need for strong internal standards and a design that prioritizes the ability of developers to rapidly scale their operations.
“The sector needs that level of intention if we are serious about moving from pilot to large-scale impact,” said the REA managing director.
This shift reflects a growing trend among forward-thinking Nigerian financial institutions that are looking at renewable energy as a bankable and commercially viable sector rather than a social good.
Both organizations are now working towards signing a formal Memorandum of Understanding (MoU) to institutionalize the partnership. The agreement is expected to provide the structured capital needed to accelerate the deployment of clean energy solutions to underserved and underserved communities across the country.
REA is optimistic that this collaboration will serve as a model for other commercial banks, building the momentum needed to bridge Nigeria's energy deficit through sustainable, private sector-led investment.
