June 20, 2025 | Lagos, Nigeria — In a major step toward expanding electricity access across Nigeria, the Rural Electrification Agency (REA) has teamed up with First City Monument Bank (FCMB) to launch a ₦100 billion financing initiative aimed at boosting renewable energy deployment through private sector participation.

Announced on Thursday, June 19, 2025, at FCMB’s headquarters in Marina, Lagos, the partnership is set to drive the Distributed Access through Renewable Energy Scale-Up (DARES) programme. The facility is expected to provide decentralised, clean energy to about two million households in communities currently lacking reliable power.

This collaboration marks a significant shift in REA’s renewable energy strategy, catalyzed by the $750 million DARES funding from the World Bank. With the support of President Bola Ahmed Tinubu, the Federal Ministry of Power, and this new financing agreement, the initiative is projected to impact over 17.5 million Nigerians living in unserved and underserved regions.

As part of the agreement, FCMB will offer a revolving loan of ₦1 billion per qualified mini-grid developer for up to two years, with the potential to expand. This funding will enable renewable energy companies participating in the DARES programme to roll out interconnected and standalone mini-grids as well as other energy solutions that promote economic activities.

REA's Managing Director and CEO, Abba Abubakar Aliyu, described the deal as a turning point in overcoming a key challenge in Nigeria’s energy transition—access to finance. “This partnership enables developers to scale their operations and meet electrification goals, directly improving the living standards of people in rural and peri-urban areas,” he said.

FCMB's Managing Director and CEO, Yemisi Edun, echoed the sentiment, saying, “Our collaboration with REA demonstrates our dedication to inclusive growth. Access to energy fuels enterprise, education, and better livelihoods, and this partnership is a powerful step toward empowering communities through clean power.”

A standout feature of the launch was the introduction of a "Deal Room"—a dedicated space where project developers can liaise directly with REA and FCMB to discuss funding, project structuring, and disbursement procedures. This platform will also help clarify eligibility requirements and project assessment standards.

As part of the arrangement, FCMB will finance up to 70% of approved project costs, while REA will provide performance-based grant support through a reserve account at the bank to reduce investment risks.

Through this partnership, REA and FCMB reaffirm their shared commitment to closing Nigeria’s energy access gap, encouraging private sector engagement, and spurring investment in the country’s growing renewable energy sector.