Abuja – The Rural Electrification Agency (REA) is intensifying efforts to expand energy access across Nigeria, with a focus on sustainable and scalable financing solutions for renewable energy projects. In a meeting held Wednesday with the Managing Director of Lotus Bank, REA’s MD/CEO, Abba Aliyu, discussed ways to deepen financial support for the agency’s Distributed Renewable Energy Scale-up (DARES) programme.
The discussions, described as a continuation of previous engagements, highlighted a growing recognition of the financing gap that has long constrained the deployment of off-grid and mini-grid energy solutions in Nigeria. While Lotus Bank has already contributed to DARES projects, the meeting marked a new phase, with the bank committing to establish a dedicated DARES financing facility. This initiative mirrors similar moves by other proactive financial institutions seeking to convert renewable energy from a development initiative into a bankable sector.
“This is exactly the kind of intentional, large-scale approach the sector needs if we’re serious about moving from pilots to impact,” Aliyu said. He encouraged Lotus Bank to define a clear global funding target for the facility, establish strong internal standards, and design the programme to unlock scale for energy developers.
The partnership aims to formalize through a Memorandum of Understanding (MoU), signaling a broader alignment between Nigeria’s energy policymakers and financial institutions that see renewable energy as both socially impactful and commercially viable. Experts note that structured financing solutions are essential to overcoming persistent barriers such as high upfront costs, limited credit access for developers, and the uneven adoption of off-grid technologies in rural communities.
The REA-Lotus Bank initiative reflects a growing trend in Nigeria: leveraging private sector capital to accelerate energy access while building a sustainable market for renewable energy solutions. As Aliyu observed, “Momentum in this sector builds one committed partner at a time,” underscoring the importance of deliberate collaboration to transform policy frameworks and pilot projects into measurable, nationwide impact.