To bridge Nigeria’s energy gap, the Rural Electrification Agency (REA) has partnered with First City Monument Bank (FCMB) to unlock ₦100 billion in financing to fast-track private sector-led deployment of renewable energy solutions across the country.
The collaboration is set to drive the implementation of the Distributed Access through Renewable Energy Scale-Up (DARES) initiative, which aims to power up to 2 million households in underserved and unserved areas with decentralised, reliable renewable energy.
The agreement also marks a new chapter in private sector participation within Nigeria’s rural electrification landscape, spurred by the $750 million DARES funding package secured from the World Bank.
With the green light from President Bola Tinubu and the stewardship of the Federal Ministry of Power, the programme is designed to unlock additional private capital, propelling efforts to deliver electricity to some 17.5 million Nigerians who remain without access to reliable power.
As part of the partnership, FCMB will extend a revolving credit facility of ₦1 billion to eligible mini-grid developers for an initial term of two years, with the flexibility to scale further.
This financial vehicle will provide much-needed capital to developers working under the DARES initiative — supporting the rollout of interconnected and standalone mini-grids and productive-use energy applications designed to stimulate economic activity in off-grid communities.
Speaking at the event, Abba Abubakar Aliyu, Managing Director and Chief Executive Officer of REA, emphasised 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.”
Yemisi Edun, Managing Director and CEO of FCMB, added,” Our partnership with the Rural Electrification Agency represents a major 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.”
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.
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