The Rural Electrification Agency (REA) and First City Monument Bank (FCMB) have signed a strategic agreement to extend a ₦100 billion loan facility aimed at accelerating private-sector-led deployment of renewable energy solutions nationwide.
Under the pact, FCMB will provide financing to support the Distributed Access through Renewable Energy ScaleUp (DARES) initiative, enabling decentralised renewable energy projects designed to deliver reliable electricity to an estimated two million households in unserved and underserved communities.
The collaboration marks the first wave of private-sector investment into the REA’s renewable energy portfolio, building on the $750 million in World Bank funding mobilised for the DARES programme.
According to the REA, these new funds will help bridge the financing gap for off-grid and mini-grid projects, reducing reliance on diesel and enhancing energy access in rural areas.
“The approval of DARES funding by President Bola Ahmed Tinubu, its commencement, and the guidance of the Federal Ministry of Power will undoubtedly lead to increased private sector funding, accelerating the intended impact of supplying electricity to 17.5 million Nigerians in unserved and underserved communities,” the agency said in a statement.
FCMB’s participation is expected to unlock additional capital flows from other financial institutions, paving the way for further scaling of solar-based mini-grids, standalone solar home systems and other renewable technologies. By encouraging a commercially viable environment for private developers, REA and FCMB aim to reduce energy poverty and stimulate economic activity in off-grid regions.
The loan facility is now open to eligible renewable energy project developers, who can apply through REA’s portal. Disbursements will be tied to project milestones, ensuring that financing directly translates into new connections and improved service reliability.
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