REA and Stanbic IBTC Bank Secure ₦100bn Renewable Energy Deal

The Rural Electrification Agency (REA) has formalized a ₦100bn financing facility with Stanbic IBTC Bank to enhance renewable energy projects and improve electricity access in unserved and underserved communities across Nigeria. This facility, structured as a revolving loan arrangement, aims to alleviate the financing challenges faced by renewable energy developers, particularly in procuring equipment and initiating projects after obtaining approvals and grants.

The memorandum of understanding allows Stanbic IBTC to provide a ₦100bn revolving loan facility with a one-year tenor to eligible project developers. The amount available to each developer will be assessed on a case-by-case basis, considering the grant agreement, the developer’s capacity, and the bank’s credit evaluation.

Abba Aliyu, the Managing Director/Chief Executive Officer of REA, stated that the financing arrangement addresses gaps identified from previous experiences, emphasizing that project approval and grants alone do not ensure immediate implementation due to the need for working capital.