FG, Nigerian bank to expand financing framework for off-grid power projects

The federal government, through the Rural Electrification Agency (REA) and Lotus Bank, has announced plans to expand their collaboration on financing off-grid electricity projects in Nigeria.

This Video Is Trending Right Now →

Speaking during the engagement, REA Managing Director Dr Abba Aliyu urged the bank to set clear funding targets and adopt internal standards that would enable developers scale their operations more efficiently.

“That level of intentionality is exactly what the sector needs if we’re serious about moving from pilots to impact at scale,” the REA Managing Director noted.

Both parties are working towards signing a Memorandum of Understanding (MoU) to formalize the partnership.

The agreement is expected to outline funding structures and operational guidelines for supporting renewable energy projects across the country.

The collaboration is aimed at increasing private sector participation in addressing Nigeria’s electricity access challenges, particularly in rural and off-grid communities.

Accordingly, collaboration is expected to move beyond support for individual projects to the creation of a dedicated financing framework aimed at improving access to renewable energy, particularly in underserved areas.

DAILY POST reports that the move is part of the government’s Distributed Access through Renewable Energy Scale-up (DARES) program.