In a strategic move aimed at boosting energy access for underserved communities, the Rural Electrification Agency (REA) and First City Monument Bank (FCMB) have signed a landmark agreement to launch a ₦100 billion loan facility dedicated to accelerating the deployment of renewable energy across Nigeria.
The agreement, formalised on Thursday, June 19, at FCMB’s headquarters in Marina, Lagos, is a key component of the Distributed Access through Renewable Energy Scale-Up (DARES) initiative.
The facility is expected to support private sector-led efforts in expanding decentralised energy solutions, targeting over two million households in rural and peri-urban areas currently without reliable electricity.
The partnership marks a major milestone in leveraging private capital to complement the $750 million World Bank DARES programme, recently approved by President Bola Ahmed Tinubu and driven under the oversight of the Federal Ministry of Power.
The programme aims to extend electricity to 17.5 million Nigerians, contributing significantly to national electrification goals.
Under the arrangement, FCMB will offer a revolving loan facility of ₦1 billion per eligible mini-grid developer for an initial period of two years, with room for expansion.
These funds will enable developers to finance mini-grid installations and productive-use energy applications, helping to catalyse economic activity in energy-poor communities.
REA’s Managing Director and CEO, Abba Abubakar Aliyu, described the agreement as a game-changer:
“This partnership addresses one of the critical barriers to renewable energy scale-up in Nigeria—access to affordable finance. With this support, developers can scale faster and drive impactful electrification in rural and peri-urban communities.”
FCMB Managing Director and CEO, Yemisi Edun, echoed the commitment: “Access to energy fuels enterprise, education, and better livelihoods. Our collaboration with REA is part of FCMB’s broader mission to support inclusive growth through sustainable financial solutions.”
A standout feature of the partnership is the creation of a “Deal Room”—a dedicated platform for developers to engage with both REA and FCMB on project structuring, eligibility, and disbursement procedures.
Under the financing model, FCMB will fund up to 70% of approved project costs, while REA will secure performance-based grants in a reserve account within FCMB to de-risk loans and attract broader participation.
