The Rural Electrification Agency (REA) has mobilized over ₦350 billion domestic capital with local creditors for renewable energy projects in Nigeria.
The agency hit the latest milestone following the signing of a ₦100bn deal with Stanbic IBTC Bank to help renewable energy developers procure equipment and accelerate electricity projects in unserved and underserved communities across Nigeria.
The journey toward assembling this ₦350 billion domestic debt buffer gained momentum in June 2025, when REA laid the institutional groundwork by executing a landmark ₦100 billion electricity access financing facility with First City Monument Bank (FCMB) followed by similar deals with Lotus Bank and Alpha Morgan
The latest agreement with Stanbic IBTC establishes a revolving loan facility for eligible developers participating in REA-led programmes, including the World Bank-supported Distributed Access through Renewable Energy Scale-up (DARES) project.
The facility is expected to address financing constraints that can delay the implementation of renewable energy projects, particularly where developers need capital to procure equipment before receiving grants tied to project delivery.
Announced the partnership in a statement following the signing of a memorandum of understanding between the agency and the bank, Managing Director and Chief Executive Officer of REA, Abba Aliyu said access to finance was a major factor determining how quickly approved renewable energy projects could move into implementation.
He said the partnership would help developers procure equipment, mobilise resources and deliver projects within required timelines.
Under the arrangement, Stanbic IBTC will provide the financing, while REA will facilitate relevant grant agreements and provide programme oversight, including developer prequalification, project approvals and verification of supporting documentation.
The bank will also provide financial advisory services, facilitate connections between developers and original equipment manufacturers, and offer international trade solutions where applicable.
An additional feature highlighted by Aliyu is the availability of Chinese Yuan Renminbi equipment financing through Stanbic IBTC’s partnership with the China Development Bank.
Under the arrangement, eligible developers will be able to finance equipment procurement and make direct payments to original equipment manufacturers in China. The approach is intended to streamline procurement and reduce reliance on intermediaries.
The financing partnership covers developers working under REA programmes, including DARES, which aims to expand electricity access through renewable energy solutions.
The agency said improving access to debt financing could reduce delays in project implementation and strengthen private sector participation in efforts to extend electricity supply to communities with limited or no access to the national grid.
For renewable energy developers, access to capital is important because project implementation often requires substantial upfront spending on solar panels, batteries and other equipment before electricity infrastructure can be completed.
The partnership brings together bank financing and REA’s programme support to help eligible developers meet these requirements and advance projects towards delivery.
Aliyu thanked Stanbic IBTC for extending its support to the sector, saying he expected the partnership to translate into completed projects, stronger businesses and more reliable electricity for Nigerians.
The agreement builds on an earlier ₦30 billion financing commitment by Stanbic IBTC to REA in 2023.
However, details establishing whether the new ₦100 billion facility is entirely additional to the earlier commitment were not provided in the announcement.
The impact of the new facility will depend on how much financing eligible developers can access, the speed of disbursement and the number of projects that progress from approval to completion.
