…the facility offers up to N8 bn per developer with a tenure of up to 18 months –
Precious Ademiloye
The Rural Electrification Agency (REA) has signed a Memorandum of Understanding with Lotus Bank to establish a ₦100 billion revolving credit facility aimed at enabling mini-grid developers under the World Bank-backed Distributed Access to Renewable Energy (DARES) programme to procure critical renewable energy equipment and scale project financing support across Nigeria.
The agreement was formalised at a signing ceremony held on Monday, February 23, 2026, witnessed by Abba Aliyu, Managing Director/Chief Executive Officer of the Rural Electrification Agency, and Isiaka Ajani-Lawal, Managing Director of Lotus Bank.
Advisors Reports gathered that the DARES is a World Bank-supported scale-up of the Nigeria Electrification Project (NEP), implemented by the REA to increase private sector-led electricity access for households, public institutions, and commercial customers.
REA therefore disclosed that the strategic agreement moves to eliminate financing barriers for renewable energy developers.
It further affirmed that the collaboration establishes a landmark facility support strategy aimed at bridging the energy access gap and delivering electricity to unserved and underserved rural communities across Nigeria.
Under the terms of the MoU, Lotus Bank is making available a revolving credit facility of One Hundred Billion Naira (N100,000,000,000) for project developers to procure essential equipment for renewable energy projects.
This facility offers up to N8 Billion per developer with a tenure of up to 18 months.
Furthermore, the Bank will provide up to 90% counterpart funding for projects approved under the result-based financing programs, subject to credit risk assessments.
The REA MD in his comment emphasized the impact of the collaboration on the energy sector: He stated: “This partnership with Lotus Bank is a significant milestone in our commitment to promoting universal access to affordable and sustainable electricity.
By securing this N100 Billion credit facility, we are directly addressing the debt financing bottleneck that has historically hindered project developers.
This ensures that reliable electricity can be delivered more efficiently to the rural communities that need it most, in line with our National Electrification Strategy.”
Isiaka Ajani-Lawal, Managing Director of Lotus Bank, while reflecting on the bank’s role in driving sustainable development, stated, “At Lotus Bank’s commitment of N100 Billion is designed to foster financial inclusion in local communities while providing developers with the liquidity and advisory tools necessary for project success.
“This initiative is not just about power; it is about improving lives and supporting the MSMEs that drive our economy,” the MD stated.
Advisors Reports further gathered that in order for the parties to ensure seamless execution, the REA will provide technical oversight by prequalifying developers, authenticating grant agreements, and utilizing Independent Verification Agents (IVAs) to confirm project connections.
Lotus Bank will complement these efforts by deploying a collection platform to enhance the financial sustainability of the projects and offering international trade tools to improve delivery efficiency.
This collaboration strengthens the institutional framework for energy financing in Nigeria, ensuring that private sector participation is backed by robust capital.
The project is expected to significantly lower the financial risks for developers, reduce project delivery timelines, and accelerate the transition to clean energy across the federation.
