The Rural Electrification Agency (REA) and First City Monument Bank (FCMB) have joined forces to provide a N100 billion loan facility aimed at boosting the private sector’s role in renewable energy development across Nigeria. This collaboration supports the Distributed Access through Renewable Energy Scale-Up (DARES) initiative, which seeks to deliver reliable electricity to about two million households in unserved and underserved areas.
The agreement marks the beginning of increased private sector involvement in REA’s renewable energy projects, following the $750 million funding boost from the World Bank under the DARES programme.
President Bola Ahmed Tinubu’s approval of the DARES funding, combined with support from the Federal Ministry of Power, is expected to spur further private investments, helping to electrify 17.5 million Nigerians currently lacking reliable power.
Under the new partnership, FCMB will provide a revolving loan facility of N1 billion per eligible mini-grid developer over a two-year period, with the possibility of increasing the amount. This financial instrument is designed to empower developers working within REA’s DARES framework, facilitating the expansion of interconnected and isolated mini-grids as well as productive-use energy projects.
Speaking at the launch, REA Managing Director and CEO Abba Abubakar Aliyu highlighted the importance of this collaboration in overcoming the major challenge of financing decentralised renewable energy. He noted that the facility will enable developers to scale their projects and meet electrification targets, ultimately improving living standards in rural and peri-urban communities.
FCMB’s Managing Director and CEO Yemisi Edun emphasized the bank’s dedication to driving inclusive economic growth through access to reliable energy. She described energy availability as essential to fostering business development, education, and overall community wellbeing.
This partnership is a significant step toward closing Nigeria’s energy gap and expanding clean energy access across the country.
