By Joycelyn Ellakeche Adah
The Rural Electrification Agency (REA) has strengthened its drive to expand electricity access across Nigeria through a strategic dual partnership with the ECOWAS Commission and the Lotus Bank.
This collaboration is designed to scale up off-grid infrastructure and mobilize significant financing for large-scale renewable energy projects across the country.
Under the Memorandum of Understanding signed in Abuja, the agency secured a $700,000 grant from ECOWAS under the Regional Off Grid Electricity Access Project to electrify 15 public health and education institutions with solar photovoltaic systems across the Federal Capital Territory, Niger State and Nasarawa State.
The agreement marks the commencement of Nigeria’s pilot implementation phase of the World Bank supported regional initiative designed to deepen clean energy access across West Africa and the Sahel
Speaking at the ceremony, the Managing Director of REA, Dr Abba Abubakar Aliyu, described the partnership as a demonstration of regional collaboration driving national development.
He noted that providing reliable power to schools and health centres would improve healthcare delivery strengthen learning outcomes and enhance community development.
“This partnership with ECOWAS reinforces Nigeria’s commitment to expanding reliable electricity access to critical public institutions. Electrifying health centres and schools means improving healthcare delivery, enhancing learning conditions, and strengthening community development.”
Reflecting on the regional significance of the project, the President of the ECOWAS Commission, Dr Omar Alieu Touray, said the pilot phase in Nigeria represents a cornerstone of the regional strategy to eliminate energy poverty, adding that sustainable solar solutions for public institutions would power the future of West Africa.
“This pilot phase in Nigeria is a cornerstone of our regional strategy to eliminate energy poverty. By providing sustainable solar solutions to schools and clinics, we are not just lighting up buildings; we are powering the future of West Africa.
“This collaboration with the REA demonstrates how regional grants can be effectively localized to touch the lives of the most vulnerable citizens,” he said.
To support the execution, the agency also signed a separate agreement with the Niger State Government to facilitate co-financing, coordination and monitoring of installations within selected facilities in the state.
Governor Mohammed Umar Bago said the collaboration aligns with the new Niger development agenda and would also ensure rural institutions have dependable electricity to serve residents effectively.
“Our partnership with the REA is a testament to our administration’s ‘New Niger’ agenda, which prioritizes sustainable infrastructure.
“By implementing these solar projects, Niger State is ensuring that our rural health and educational facilities have the reliable power they need to serve our people effectively. We remain committed to providing the necessary counterpart support to make this initiative a lasting success, ” he said.
In a related development, the agency has signed another Memorandum of Understanding with Lotus Bank to unlock N100 billion in project financing targeted at renewable energy developers under the Distributed Access to Renewable Energy Scale up program.
The facility provides up to N8 billion per developer with a tenure of eighteen months and offers up to ninety percent counterpart funding for projects approved under result based financing subject to credit assessment
Speaking at the signing ceremony, REA’s CEO Aliyu, emphasized the impact of the collaboration on the energy sector.
He stated: “This partnership with Lotus Bank is a significant milestone in our commitment to promoting universal access to affordable and sustainable electricity. By securing this N100 Billion credit facility, we are directly addressing the debt financing bottleneck that has historically hindered project developers.
“This ensures that reliable electricity can be delivered more efficiently to the rural communities that need it most, in line with our National Electrification Strategy.”
Aliyu said the financing arrangement directly addresses long standing debt bottlenecks that have slowed project delivery in rural communities.
He added that the partnership will accelerate universal access to affordable and sustainable electricity in line with the national electrification strategy.
The Managing Director of Lotus Bank, Isiaka Ajani Lawal, said the bank is committed to supporting renewable energy infrastructure while fostering financial inclusion and strengthening the capacity of micro small and medium enterprises.
“At Lotus Bank, we are proud to partner with the REA to support the growth of renewable energy infrastructure in Nigeria. Our commitment of N100 Billion is designed to foster financial inclusion in local communities while providing developers with the liquidity and advisory tools necessary for project success.
“This initiative is not just about power; it is about improving lives and supporting the MSMEs that drive our economy.”
The agency will provide technical oversight by prequalifying developers authenticating grant agreements and deploying independent verification agents to confirm project connections while the bank will provide liquidity advisory support and collection platforms to enhance financial sustainability.
REA is the implementing arm of the Federal Government under the Federal Ministry of Power responsible for extending electricity to unserved and underserved communities to drive economic growth and improve living standards.
Established under Section 127 of the Electricity Act 2023, the agency delivers national electrification initiatives including the Rural Electrification Fund, the Nigeria Electrification Project, the Distributed Access through Renewable Energy Scale up programme and other public sector solar and mini grid interventions.
Persecondnews reports that the synergy of ECOWAS-funded solar projects and a 100 billion naira financing pool will drive a major shift away from costly diesel generators.
By improving power reliability in rural areas, the programme not only lowers overhead for public institutions but also streamlines energy policy execution from the regional level down to local communities.
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