REA and Lotus Bank Sign N100bn Renewable Energy Deal

On Tuesday, the Rural Electrification Agency (REA) announced a significant partnership with Lotus Bank, formalizing a memorandum of understanding for a N100 billion revolving credit facility aimed at expanding renewable energy access in underserved rural communities across Nigeria. This strategic intervention is designed to eliminate financial bottlenecks that hinder renewable energy development.

Under the terms of the agreement, Lotus Bank will provide a revolving credit facility of N8 billion per project, with a development tenure of 18 months, to support the procurement of critical equipment for renewable energy projects. The REA will collaborate with Lotus Bank to establish a landmark financial framework that bridges Nigeria's energy access gap and accelerates electricity delivery to rural communities.

The partnership is expected to strengthen private sector participation in off-grid electrification initiatives, stimulate growth in micro, small, and medium enterprises (MSMEs), create jobs, and improve the livelihoods of local communities. The bank will provide 90 percent of the counterpart funding for approved projects, subject to credit risk assessments.