REA and Lotus Bank Launch N100bn Renewable Energy Initiative

The Rural Electrification Agency (REA) signed a memorandum of understanding (MoU) with Lotus Bank on Monday to facilitate a landmark financing initiative of N100 billion aimed at addressing energy access gaps in underserved rural communities across Nigeria. This partnership is designed to eliminate financial barriers to renewable energy development and enhance electricity delivery in these areas.

The MoU allows Lotus Bank to provide bespoke project financing support for mini-grid development and renewable energy projects, with a revolving credit facility of N8 billion available per development over an 18-month tenure. Additionally, the bank will offer a 90% counterpart fund for approved projects, subject to credit risk assessment.

Abba Abubakar Aliyu, the Managing Director and CEO of REA, emphasized the significance of this collaboration in promoting universal access to affordable and sustainable electricity, addressing historical debt financing bottlenecks that have hindered project development, and ensuring reliable electricity delivery to rural communities in line with the national electrification strategy.