The Rural Electrification Agency (REA) and First City Monument Bank (FCMB) have announced a strategic partnership to significantly boost rural electrification efforts in Nigeria. This collaboration involves a substantial N100 billion loan facility specifically earmarked for private sector-led renewable energy projects across the country. This initiative is designed to accelerate the deployment of sustainable energy solutions and address the critical need for improved electricity access in underserved communities.
This partnership directly supports the implementation of the Distributed Access through Renewable Energy Scale-Up (DARES) initiative, a program with the ambitious goal of providing reliable and clean power to approximately 2,000,000 households in unserved and underserved areas throughout Nigeria. By focusing on decentralized renewable energy projects, the initiative aims to overcome the challenges associated with traditional grid extension and deliver power to even the most remote communities.
The signing of the agreement between REA and FCMB marks a significant milestone, signaling the commencement of substantial private sector investment in the REA’s renewable energy sector. This investment has been catalyzed by the $750 million DARES funding secured from the World Bank, demonstrating the confidence of international financial institutions in Nigeria’s renewable energy potential.
The approval of the DARES funding by President Bola Ahmed Tinubu, along with its subsequent commencement, underscores the government’s strong commitment to expanding electricity access and promoting sustainable energy development. The guidance and support of the Federal Ministry of Power have also been instrumental in facilitating this partnership and ensuring its alignment with national energy goals.
This collaborative effort between REA and FCMB is expected to unlock significant private sector funding, further accelerating the intended impact of supplying electricity to an estimated 17.5 million Nigerians living in unserved and underserved communities. By leveraging the expertise and resources of both the public and private sectors, this initiative promises to transform the energy landscape in rural Nigeria, fostering economic growth, improving living standards, and creating a more sustainable future. The partnership represents a significant step towards achieving universal electricity access and realizing Nigeria’s renewable energy potential.
