The Rural Electrification Agency (REA) has said that about 2,000,000 households in unserved and underserved areas across Nigeria will soon enjoy electricity access.
It stated that this will be possible through its recent strategic collaboration and agreement with First City Monument Bank (FCMB) at the bank’s head-quarters in Marina, Lagos, to provide a ₦100 billion loan facility targeted at accelerating private sector-led deployment of renewable energy solutions across Nigeria
According to a statement from REA on Tuesday, it explained that the landmark move is aimed to bolster electricity access for millions of Nigerians,
It also said that the agreement supports the implementation of the Distributed Access through Renewable Energy Scale-Up (DARES) initiative.
It further stated that 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 catalysed by the $750 million DARES World Bank funding.
According to the statement, the approval of DARES funding by President Bola Ahmed Tinubu, its commencement, and the guidance of the Federal Ministry of Power will undoubtedly lead to increased private sector funding, accelerating the intended impact of supplying electricity to 17.5 million Nigerians in unserved and underserved communities.
It further said that under this 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. 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 event, the Managing Director and Chief Executive Officer of REA, Abba Abubakar Aliyu, emphasized the strategic importance of the collaboration.
He stated: “This partnership signifies a significant milestone in addressing one of the biggest challenges in decentralised renewable energy deployment—access to finance. Through this facility, developers will have better access to funding that will enable them to scale and meet electrification targets, thus improving the quality of life in rural and peri-urban communities.”
Managing Director and Chief Executive Officer, FCMB, Yemisi Edun, said: ”Our partnership with the Rural Electrification Agency 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, making it 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.”
The statement said that groundbreaking partnership is significant in a number of ways. It stated that the original objective of the REA and the Federal Government of Nigeria is to leverage the DARES grant to further catalyze private sector funding, in Nigeria.
It added that the N100 billion FCMB Facility is a testament to just that and the beginning of more private sector facilities to be unlocked by the REA.
“A key highlight of the launch was the introduction of a “Deal Room”, a dedicated platform for project developers to engage with REA and FCMB on project financing, structure, and disbursement processes. This will enable developers to better understand the eligibility criteria and project evaluation mechanisms.
“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.
“This is a transformative Facility which will further accelerate the Federal Government’s Renewable energy scale-up efforts nationwide. Access to finance has been a key barrier to the private sector over the years and the REA is pushing back on that barrier by unlocking finance for improved numbers of renewable energy projects across the country to serve the unserved and the underserved, thereby de-resiking the business environment for the private sector to thrive in the clean energy space.
“This partnership further places REA as a frontline agency optimizing Public-Private-Partnerships for national development. Through this collaborative approach, REA and FCMB reaffirm their commitment to bridging Nigeria’s energy access gap, promoting private sector participation, and unlocking investment opportunities within the renewable energy sector,” it conclude