In a landmark move to bolster electricity access for millions of Nigerians, the Rural Electrification Agency (REA) and First City Monument Bank (FCMB) have on Thursday 19th June, 2025, at the bank’s head-quarters in Marina, Lagos, entered into a strategic collaboration to provide a ₦100 billion Naira loan facility targeted at accelerating private sector-led deployment of renewable energy solutions across the country.
The agreement supports the implementation of the Distributed Access through Renewable Energy Scale-Up (DARES) initiative and will enable the deployment of decentralized renewable energy projects aimed at delivering reliable power to approximately two million households in unserved and underserved areas across the country.
The signing of these agreements between REA and FCMB signifies the commencement of private sector investment in the Rural Electrification Agency’s renewable energy space, which was catalyzed by the $750 million DARES World Bank funding.
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.
Under this partnership, FCMB will provide a revolving loan facility of ₦1 billion per eligible mini-grid developer for a period of two years, with potential for scale-up. The facility will serve as a critical financial instrument for developers engaged under REA’s DARES programme which is an initiative designed to expand inclusive energy access and stimulate economic growth through the deployment of interconnected and isolated mini-grids, as well as productive-use applications.
Speaking at the event, the Managing Director/CEO of REA, Abba Abubakar Aliyu, emphasized the strategic importance of the collaboration. He stated, “This partnership signifies a significant milestone in addressing one of the biggest challenges in decentralized 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.”
The Managing Director of FCMB stated ”Our partnership with the REA represents a pivotal 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; it is 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”. This is 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.
Through this collaborative approach, REA and FCMB reaffirm their commitment to bridging Nigeria’s energy access gap, promoting private sector participation, and unlocking investment opportunities within the renewable energy sector.
About the Rural Electrification Agency (REA)
The Rural Electrification Agency (REA) is the Implementing Agency of the Federal Government of Nigeria (FGN) under the Federal Ministry of Power tasked with the electrification of unserved and underserved communities to catalyze economic growth and improve quality of life for Nigerians. The Agency was established under section 127 of the Electricity Act 2023.
The REA is currently implementing the Rural Electrification Fund (REF), Capital Projects, Nigeria Electrification Project (NEP), Distributed Access through Renewable Energy Scale-up (DARES), Solar Power Naija (SPN), Energizing Education Programme (EEP), Energizing Economies Initiative (EEI), Energizing Agriculture Programme (EAP), Energy for All – Mass Rural Electrification,Research and Innovation Hub. Africa Mini Grids Programme(AMP), Derisking Sustainable Off-Grid Lighting Solutions (DSOLS), the Korean Energy Project, Healthcare, Education, Agriculture, Rural Development And Transportation (e-HEART)and the Global Cleantech Innovation Programme (GCIP).
The Agency is responsible for creating an enabling environment for private sector-led projects, which includes conducting feasibility assessments, energy audits, enumeration, data analysis, identification of qualified private sector developers, and project stakeholder engagements.
About the DARES Programme
The Distributed Access through Renewable Energy Scale-up (DARES) project is a $750 million initiative, funded by the World Bank which aims to scale-up Nigeria’s energy access gap by providing new or improved electricity supplies to more than 17.5 million Nigerians. DARES is designed to capitalize on the accomplishments of the World Bank-financed Nigeria Electrification Project (NEP)
