The Rural Electrification Agency (REA) and First City Monument Bank (FCMB),on Thursday entered into a strategic partnership to provide a ₦100 billion Naira loan facility aimed at accelerating private sector-led deployment of renewable energy solutions in the country.
The agreement supports the implementation of the Distributed Access through Renewable Energy Scale-Up (DARES) initiative and will enable the deployment of decentralized renewable energy projects aimed at delivering reliable power to approximately 2,000,000 households in unserved and underserved areas across the country, a statement said.
The signing of these agreements between REA and FCMB signifies the commencement of private sector investment in the Rural Electrification Agency’s renewable energy space, which was catalyzed by the $750 million DARES World Bank funding.
Under the partnership, FCMB will provide a revolving loan facility of ₦1 billion per eligible mini-grid developer for a period of two years, with potential for scale-up.
Besides, the partnership structure provides that FCMB will finance up to 70% of approved project costs, while REA will domicile performance-based grant payments into a reserve account within FCMB to further de-risk the transactions.
According to the statement, the facility will serve as a critical financial instrument for developers engaged under REA’s DARES programme which is an initiative designed to expand inclusive energy access and stimulate economic growth through the deployment of interconnected and isolated mini-grids, as well as productive-use applications.
Speaking at the launch in Lagos, the Managing Director/CEO of REA, Abba Abubakar Aliyu, emphasized the strategic import of the collaboration.
He said the partnership signifies a significant milestone in addressing one of the biggest challenges in decentralized renewable energy deployment—access to finance.
He explained that through this facility, developers will have better access to funding that will enable them to scale and meet electrification targets, with a view to improving the quality of life in rural and peri-urban communities.
The Managing Director of FCMB stated: ”Our partnership with the REA represents a pivotal step in our commitment to powering inclusive growth and economic resilience across Nigeria. Access to reliable energy is a catalyst for enterprise, education, and improved livelihoods; it is a critical development goal.
“Through this collaboration, we are combining financial innovation with infrastructure delivery to ensure underserved communities are not left behind. Together, we are building pathways for people to thrive by unlocking the power of energy to transform homes, businesses, and entire communities.”
Deal Room, a dedicated platform for project developers to engage with REA and FCMB on project financing, structure, and disbursement processes ,was introduced at the launch.
The development will enable developers to better understand the eligibility criteria and project evaluation mechanisms.
