The Rural Electrification Agency (REA) and Lotus Bank have announced a strategic partnership to expand financing for renewable energy projects and accelerate energy access across Nigeria.

The collaboration marks a shift from project-based support to a large-scale, dedicated financial framework, focusing on the Distributed Access through Renewable Energy Scale-up (DARES) programme. While Lotus Bank has previously supported individual projects under DARES, the new phase will see the bank establish its own dedicated DARES financing facility.

Speaking at a recent high-level meeting, REA Managing Director, Dr. Abba Aliyu, urged Lotus Bank to adopt a bold approach by setting a clear global funding target for the facility and designing it to enable developers to scale operations quickly. He emphasized,
“That level of intentionality is exactly what the sector needs if we’re serious about moving from pilots to impact at scale.”

The statement highlighted that the partnership reflects a growing trend among Nigerian financial institutions to view renewable energy as commercially viable and bankable, rather than solely as a social good.

Both institutions are working toward signing a formal Memorandum of Understanding (MoU) to institutionalize the partnership. The MoU is expected to provide structured capital to accelerate the deployment of clean energy solutions to underserved and unserved communities nationwide.

REA expressed optimism that the collaboration will serve as a model for other commercial banks, creating momentum for private-sector-led investment to bridge Nigeria’s energy deficit sustainably.