Oredola Adeola
The Rural Electrification Agency (REA) and Lotus Bank have entered into a collaboration under the Distributed Access through Renewable Energy Scale-up (DARES) initiative to establish a standalone, dedicated financing facility aimed at providing developers with access to structured funding to rapidly scale renewable energy projects across Nigeria.
The two institutions confirmed this in a statement obtained by Advisors Reports at the weekend following a high-level meeting held on Wednesday,
The engagement focused on the Distributed Access through Renewable Energy Scale-up (DARES) 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 establish its own dedicated DARES financing facility.
Dr Abba Aliyu, Managing Director of the REA, during the engagement challenged the leadership of Lotus Bank to adopt a bold approach by setting a clear global funding target for the facility.
The agency emphasized the need for strong internal standards and a design that prioritizes the ability of developers to scale their operations quickly.
“That level of intentionality is exactly what the sector needs if we’re serious about moving from pilots to impact at scale,” the REA Managing Director noted.
The shift reflects a growing trend among forward-thinking Nigerian financial institutions that are increasingly viewing renewable energy as a bankable and commercially viable sector rather than strictly a social good.
Both organizations are now working toward the signing of a formal Memorandum of Understanding (MoU) to institutionalize the partnership.
This agreement is expected to provide the structured capital necessary to accelerate the deployment of clean energy solutions to underserved and unserved communities nationwide.
The REA has therefore 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.
