Five local Renewable Energy Service Companies (RESCOs) have secured $14.3 million in funding to accelerate the deployment of Five local Renewable Energy Service Companies (RESCOs) have secured $14.3 million in funding to accelerate the deployment of solar power and expand electricity access across the country.and expand electricity access across the country.
The disbursement was announced by the Managing Director and Chief Executive Officer of the Rural Electrification Agency (REA), Dr Abba Aliyu, who described the investment as a decisive indicator of growing commercial confidence in the nation’s energy transition.
The funding is part of a broader ₦100 billion dedicated facility established earlier this year by Lotus Bank under the Distributed Access through Renewable Energy Scale-up (DARES) initiative, a program executed in partnership with the World Bank.
The latest tranche follows earlier financial allocations extended to developers Zanoplus and Havenhills.
Speaking on the milestone, Aliyu emphasized that the involvement of domestic lenders marks a critical shift from grant reliance to commercial sustainability in the renewable energy market.
“One of the clearest signs that a market is maturing is when local financial institutions begin investing in it with confidence.”
“Beyond deploying renewable energy infrastructure, the Rural Electrification Agency is catalysing local financing at scale, creating an environment where Nigerian financial institutions are backing Nigerian developers to deliver electricity access across the country,” he said.
He noted that limited access to capital has historically stalled the expansion of clean energy projects.
However, interventions under the DARES framework are successfully de-risking the sector and attracting private equity.
“Through DARES, we are helping to de-risk the sector, crowd in local capital, and create the conditions for private investment to flourish. That is how sustainable markets are built, not through grants alone, but by enabling commercial finance to play its role,” he added.
Aliyu commended Lotus Bank for its financial leadership, recognized the World Bank’s strategic support, and applauded the recipient RESCOs for demonstrating the operational capacity to scale electrification projects across underserved communities nationwide.