The Rural Electrification Agency has partnered with Lotus Bank through a Memorandum of Understanding to secure a N100 billion revolving credit facility, aimed at boosting renewable energy access for unserved and underserved rural communities across Nigeria.

The was disclosed in a statement released in Abuja on Tuesday.

REA called the partnership a strategic initiative to overcome financing challenges that have hindered the expansion of renewable energy developers.

Under the MoU, Lotus Bank will provide each developer with a revolving credit facility of up to N8 billion for a tenure of up to 18 months, enabling the purchase of essential equipment for renewable energy projects.

REA said the partnership sets up a landmark financing framework designed to narrow Nigeria’s energy access gap and accelerate electricity supply to rural communities, while also enhancing private sector participation in off-grid electrification.

REA Managing Director, Abba Aliyu, said, “This partnership is a critical step in unlocking affordable debt financing for renewable energy developers. By securing this N100 billion facility, we are removing one of the biggest barriers to scaling rural electrification projects and delivering reliable power in line with our National Electrification Strategy.”

Lotus Bank’s Managing Director, Isiaka Ajani-Lawal, said, “Our N100 billion commitment is structured to provide developers with the liquidity and advisory support required for successful project execution.”

He added that the initiative is expected to drive MSME growth, generate employment, and enhance livelihoods in local communities.

REA noted that Lotus Bank will provide up to 90% counterpart funding for projects approved under the results-based financing programme, subject to credit risk evaluations.

The agency stated that the agreement will substantially lower financial risks for developers and accelerate project delivery timelines.