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 N100 billion 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. It will enable the deployment of decentralised renewable energy projects aimed at delivering reliable power to approximately 2,000,000 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 catalysed 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 N1 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, Abba Abubakar Aliyu, Managing Director and CEO 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, stated,? Our partnership with the Rural Electrification Agency 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, 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?. 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.

? Photo caption: Divisional Head, Business Banking, First City Monument Bank (FCMB), Mr. George Ogbonnaya; Executive Director, Rural Electrification Fund, Rural Electrification Agency (REA), Engr. Doris Uboh; Executive Director, Corporate Services, REA, Mr. Gboyega Ayoade; Managing Director/CEO, FCMB, Mrs. Yemisi Edun; Managing Director, REA, Mr. Abba Aliyu; Executive Director, Wholesale Banking, FCMB, Mr. Obaro Odeghe; and Executive Director, Technical Services, REA, Engr. Abdulahi Umar, at the launch of FCMB?s ?100 billion facility for the Distributed Access through Renewable Energy Scale-Up (DARES) project and the signing of a Memorandum of Understanding with REA on June 19, 2025, in Lagos. The facility is designed to accelerate electricity access for two million households across Nigeria.

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