REA, Lotus Bank Sign N100 Billion Renewable Energy Financing Deal
Nigeria’s push for electricity for all got a big lift. The Rural Electrification Agency (REA) signed a key Memorandum of Understanding (MoU) with Lotus Bank. This opens a N100 billion fund for renewable energy access.
The deal sets up a clear plan for funding. It aims to close Nigeria’s energy gap. It speeds up power to rural areas without service or with little.
The pact, signed on Monday, locks in support for mini-grid builders in the Distributed Access to Renewable Energy (DARES) program. These are custom loans for projects.
DARES builds on the Nigeria Electrification Project (NEP). The World Bank backs it. REA runs it to grow private power to homes, schools, offices, and businesses nationwide.
Lotus Bank offers a N100 billion revolving loan. Developers use it to buy gear for green energy work. Each can get up to N8 billion for 18 months.
The bank also gives 90 percent matching funds for approved projects under results-based financing (RBF). This follows credit checks. It cuts cash shortages that slow rural green power rollout.
At the event, REA’s Managing Director/CEO Abba Abubakar Aliyu called it a key step in Nigeria’s power plan.
He said: “This tie-up with Lotus Bank marks real progress in our goal for cheap, green power for all. The N100 billion loan fixes the debt issues that block developers. Now reliable power reaches needy rural spots faster. It fits our National Electrification Strategy.”
His words highlight a big off-grid issue: lack of cheap loans. This fund brings big money fit for mini-grid teams. It shortens build times and cuts risks.
Lotus Bank’s Managing Director Isiaka Ajani-Lawal stressed wider benefits.
He said: “Lotus Bank is glad to team with REA for green power growth in Nigeria. Our N100 billion helps include locals in finance. It gives developers cash and advice for wins. This goes beyond power. It betters lives and aids small businesses that fuel our economy.”
The deal should spark rural growth. It powers small firms, clinics, schools, and farm hubs that need steady electricity.
REA ensures smooth rollout. It vets developers, checks grant deals, and sends Independent Verification Agents (IVAs) to verify links and results.
Lotus Bank sets up a payment system for better repayments and steady cash flow. It adds global trade aids for faster gear imports.
Experts see this as a solid move to set up steady energy loans in Nigeria’s green sector. Public checks pair with private cash. It lowers risks, speeds projects, and builds trust in off-grid investments.
Nigeria shifts to clean energy. This N100 billion fund shows banks and energy groups team up to fix access gaps.
