Abuja, Nigeria – The Rural Electrification Agency (REA) has signed a Memorandum of Understanding with Lotus Bank for a N100 billion revolving credit facility to expand renewable energy access to unserved and underserved rural communities across Nigeria.
Okay News reports that the agreement, announced in a statement on Tuesday, establishes a landmark financing framework to bridge Nigeria’s energy access gap and accelerate electricity delivery. Under the terms, Lotus Bank will provide up to N8 billion per developer with a tenure of up to 18 months to support procurement of critical equipment for renewable energy projects.
REA Managing Director Abba Aliyu described the partnership as a critical step in unlocking affordable debt financing for renewable energy developers. By securing this N100 billion facility, the agency is removing one of the biggest barriers to scaling rural electrification projects. Lotus Bank Managing Director Isiaka Ajani-Lawal stated that the commitment is structured to provide developers with liquidity and advisory support required for successful project execution, while stimulating MSME growth and creating jobs.
The bank will provide up to 90 percent counterpart funding for projects approved under the results-based financing programme, subject to credit risk assessments. The agreement formalises project financing support for mini-grid developers participating in the Distributed Access to Renewable Energy programme, a World Bank-supported scale-up of the Nigeria Electrification Project. REA will provide technical oversight by pre-qualifying developers and authenticating grant agreements, while independent verification agents will validate project connections.
Lotus Bank will deploy a dedicated collection platform to enhance project bankability and sustainability, and provide international trade instruments to improve supply chain efficiency. The N100 billion facility strengthens Nigeria’s institutional framework for energy financing and supports the country’s transition to clean energy. This latest energy financing initiative follows REA’s recent agreement with ECOWAS to deploy solar systems to 15 public institutions under the Regional Off-Grid Electricity Access Project. The new energy financing arrangement signals a stronger push toward sustainable energy deployment, backed by structured capital support to drive universal electricity access.
