Access to renewable energy across Nigeria is poised for a significant scale-up following a landmark partnership agreement between Lotus Bank and the Rural Electrification Agency (REA). The collaboration aims to move beyond piecemeal project funding to establish a large-scale, dedicated financial framework for clean energy deployment.
The agreement, focused on the Distributed Access through Renewable Energy Scale-up (DARES) programme, will see Lotus Bank establish its own dedicated DARES financing facility. This marks a strategic shift from the bank’s previous support of individual projects under the initiative.
During the high-level meeting, the Managing Director of the REA, Dr. Abba Aliyu, challenged the bank to adopt a bold approach. He emphasized the critical need for a facility designed to enable rapid scaling by developers.
“That level of intentionality is exactly what the sector needs if we’re serious about moving from pilots to impact at scale,” Aliyu stated. He expressed optimism 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.”
The partnership reflects a growing trend where Nigerian financial institutions are increasingly viewing renewable energy as a commercially viable and bankable sector. Both organizations are now finalizing a formal Memorandum of Understanding (MoU) to institutionalize the partnership, which is expected to provide the structured capital needed to accelerate clean energy solutions for underserved communities nationwide.
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