The Rural Electrification Agency has secured a N100bn financing facility from Stanbic IBTC Bank to support renewable energy developers and expand electricity access to communities with limited or no access to power.
The one-year revolving facility is designed to provide funding for eligible developers working on REA-led electrification programmes, including the World Bank-funded Distributed Access through Renewable Energy Scale-up programme.
The financing is expected to help developers overcome one of the major challenges in renewable energy project delivery — securing funds to purchase equipment and begin implementation after receiving project approval.
Under the agreement, the amount available to each developer will be determined based on the relevant grant agreement, the developer’s capacity and Stanbic IBTC’s credit assessment.
REA Managing Director and Chief Executive Officer, Abba Aliyu, said the arrangement would help bridge the gap between project approval and implementation.
Aliyu said previous experience had shown that an approved project and grant were not always enough to enable developers to commence work, as additional capital was often required for equipment procurement and project mobilisation.
He said the partnership would combine REA’s results-based financing model with commercial lending, giving qualified developers better access to funds needed to execute projects and connect more Nigerians to electricity.
Stanbic IBTC Head of Energy and Infrastructure, Richard Inegbedion, said the partnership reflected the bank’s commitment to infrastructure development and Nigeria’s transition to renewable energy.
Beyond the lending facility, the bank will provide financial advisory services and support developers with access to original equipment manufacturers and international trade solutions where applicable.
Stanbic IBTC will also operate a collection platform intended to support the financial management and sustainability of projects.
REA will continue to oversee the programme by handling developer prequalification, project approvals, grant agreements and verification of relevant documents.
Managing Director of Asolar Systems Nigeria Limited, Hakeem Shagaya, said access to suitable financing was critical to helping renewable energy developers move approved projects into implementation.
He said the financing arrangement would enable developers to procure equipment, mobilise resources and deliver projects within the required timelines.
The partnership is expected to increase private-sector participation in Nigeria’s electricity access drive, reduce delays linked to financing and accelerate the deployment of renewable energy infrastructure in underserved communities.
The agreement will remain effective throughout the World Bank-funded DARES programme managed by REA and will end after the programme and repayment of facilities disbursed under the arrangement, subject to the terms of the agreement.
