LOTUS Bank Limited and the Rural Electrification Agency have signed a landmark Memorandum of Understanding (MoU) aimed at expanding access to renewable energy across underserved and rural communities nationwide. The agreement, formalised in Abuja on Monday, will see up to ₦100 billion in accessible financing made available to certified renewable energy developers.
Under the partnership, the funding facility will empower certified Renewable Energy Service Companies (RESCOs) with much-needed capital to accelerate the delivery of off-grid and decentralised clean energy projects, a segment that has historically been constrained by limited access to long-term, affordable financing.
Speaking at the signing ceremony, Dr. Isiaka Ajani-Lawal, Managing Director and Chief Executive Officer of LOTUS Bank, described the initiative as a concrete expression of the bank’s mission to harness ethical, non-interest financing to tackle pressing national development challenges and drive financial inclusion. He said the collaboration underscores the bank’s commitment to financing solutions that deliver tangible social and economic impact, especially in rural communities.
Ajani-Lawal emphasised that the facility is not just about funding projects but about partnership, empowerment, and shared prosperity aligning with broader efforts to ensure that Nigeria’s energy transition benefits all segments of society.
On his part, REA Managing Director Abba Abubakar Aliyu highlighted the financing gap that continues to slow the deployment of renewable energy infrastructure in Nigeria. Aliyu said that partnerships like this are essential to unlocking private sector investment and delivering sustainable energy solutions at scale. He noted that while Nigeria has made progress in expanding energy access, financing remains a key bottleneck for developers in the off-grid energy space.
The new financing facility aligns with the National Electrification Strategy and Implementation Plan (NESIP) and contributes to Sustainable Development Goal 7 (SDG7), which aims to ensure access to affordable, reliable and clean energy for all Nigerians. It is expected to catalyse further private sector participation in renewable energy deployment helping to bridge the nation’s energy access gap and boost socio-economic development in rural areas.
Industry analysts say that easier access to capital for RESCOs could spur rapid deployment of solar mini-grids, household solar systems, and other decentralised clean energy solutions, reducing reliance on diesel generators and expanding reliable electricity access for communities traditionally left behind by grid infrastructure.
