The Rural Electrification Agency (REA) has joined forces with First City Monument Bank (FCMB) to launch a N100 billion financing initiative aimed at scaling up renewable energy access across Nigeria, particularly in communities with little or no electricity supply.

The official signing took place at FCMB’s headquarters in Lagos, cementing a partnership that supports the Distributed Access through Renewable Energy Scale-Up (DARES) programme — a World Bank-backed project designed to deliver reliable, off-grid energy to unserved and underserved populations.

The facility will enable private developers to access revolving loans of up to N1 billion each, over an initial two-year period, with opportunities for expansion. These funds will help deploy mini-grids and other off-grid solutions, potentially impacting over two million households nationwide.

This new phase of private sector involvement builds on the momentum of the $750 million DARES fund and aligns with the Federal Government’s goal of electrifying 17.5 million Nigerians. The initiative also reflects President Bola Tinubu’s endorsement of the DARES programme and ongoing support from the Federal Ministry of Power.

REA’s Managing Director and CEO, Abba Abubakar Aliyu, called the deal a major breakthrough in removing financial barriers for mini-grid developers. “One of the biggest obstacles to scaling decentralised power is access to funding. This partnership changes that equation,” he said.

Yemisi Edun, Managing Director of FCMB, emphasized the bank’s commitment to inclusive development: “This collaboration goes beyond finance — it’s about creating meaningful opportunities. Access to steady electricity drives economic growth, education, and improved living conditions.”

The REA-FCMB partnership is expected to play a key role in transforming Nigeria’s energy landscape by unlocking private sector participation and accelerating clean energy deployment in communities most in need.