In a bold move to tackle Nigeria’s power deficit, the Rural Electrification Agency (REA) has teamed up with First City Monument Bank (FCMB) to unlock a ₦100 billion financing facility aimed at delivering clean energy to 2 million households across the country.
The initiative, under the Distributed Access through Renewable Energy Scale-Up (DARES) programme, is part of a broader effort to connect underserved and off-grid communities with reliable, renewable power solutions. Backed by a $750 million World Bank package, DARES is expected to impact more than 17.5 million Nigerians who currently lack access to stable electricity.
Speaking at the launch, REA’s Managing Director and CEO, Abba Abubakar Aliyu, described the partnership as “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,” Aliyu said.
FCMB will provide a revolving credit facility of ₦1 billion to eligible mini-grid developers over an initial two-year term, with plans to scale up based on performance. The bank will finance up to 70% of approved project costs, while REA will manage performance-based grants through a dedicated reserve account, helping to de-risk investments.
Yemisi Edun, FCMB’s Managing Director and CEO, called the collaboration “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,” she said. “We are combining financial innovation with infrastructure delivery to ensure underserved communities are not left behind.”
A key feature of the launch was the unveiling of a “Deal Room” — a dedicated platform where developers can interact with REA and FCMB on financing structures, eligibility requirements, and project disbursement processes.
This partnership signals a strong vote of confidence in private sector-led power solutions, with the support of President Bola Tinubu and the Federal Ministry of Power.
