REA, CSCS partner on capital market financing for energy projects

The Rural Electrification Agency (REA) has partnered with the Central Securities Clearing System (CSCS) to unlock new funding pathways for Nigeria’s energy access goals through the capital market.

This development was disclosed following a high-level meeting on Friday between the Managing Director of the REA and the leadership of the CSCS, led by its newly appointed Managing Director, Mr. Shehu Yahaya Shantali.

The REA boss described the engagement as a pivotal step toward integrating strong market infrastructure with energy development, noting that the CSCS sits at the heart of Nigeria’s post-trade ecosystem.

The collaboration aims to leverage CSCS's trusted access across equities, bonds, treasury bills, and commodities to finance, structure, and scale renewable energy projects.

During the meeting, both parties discussed practical modalities for entering the capital market together. Key focus areas included defining clear deliverables and timelines to ensure that proposed energy financing vehicles are seamless, credible, and investor-ready.

Highlighting the personal significance of the meeting, the REA Managing Director congratulated Mr. Shantali on his recent appointment, citing a professional relationship spanning nearly two decades.

"His depth, integrity, and understanding of the market are exactly what CSCS needs at this moment," the REA boss stated, expressing confidence that the appointment is a perfect match for the institution's current trajectory.

A major highlight of the discussion was the potential of carbon credits to generate additional economic value. Both agencies explored how carbon credits could create new revenue streams for renewable energy projects while deepening sustainability outcomes.

To ensure robust coordination, the REA expressed its openness to inducting the CSCS into its Solarisation Committee, a body that already includes partners such as the Budget Office of the Federation, InfraCorp, and the Ministry of Finance.

The REA confirmed that plans are underway to formalize the partnership through the signing of a Memorandum of Understanding (MoU) soon, marking a shift from conversation to execution in the drive to bridge Nigeria’s energy deficit.