By Abbas Nazil
LOTUS Bank Limited has signed a partnership agreement with the Rural Electrification Agency to provide up to N100 billion in accessible financing aimed at expanding renewable energy access across underserved communities in Nigeria.
The agreement was formalised through a Memorandum of Understanding in Abuja, under which the bank will extend funding support to certified Renewable Energy Service Companies to accelerate clean energy project development and implementation.
The initiative is designed to reduce financial bottlenecks facing renewable energy providers while strengthening private sector participation in line with Nigeria’s National Electrification Strategy and Implementation Plan.
It also seeks to advance progress toward Sustainable Development Goal 7, which promotes affordable, reliable and clean energy access for households, businesses and institutions across the country.
During the signing ceremony, the Managing Director of LOTUS Bank, Dr. Isiaka Ajani-Lawal, described the collaboration as a reflection of the bank’s commitment to ethical finance and sustainable development.
He stated that the partnership demonstrates how financial institutions can contribute meaningfully to national development by supporting initiatives that generate social, environmental and economic impact.
According to him, the bank was established to redefine the role of finance by prioritising partnership, empowerment and shared prosperity through strategic investment in key sectors.
Ajani-Lawal explained that expanding into renewable energy financing aligns with the bank’s broader strategy to deepen inclusive finance while supporting programmes that deliver measurable development outcomes.
He emphasised that supporting clean energy projects will not only improve electricity access but also stimulate job creation, enhance productivity and encourage innovation within local communities.
The collaboration between LOTUS Bank and the Rural Electrification Agency is also linked to ongoing efforts under the DARES programme, which focuses on scaling decentralised renewable energy solutions nationwide.
Stakeholders noted that increased access to affordable financing will enable renewable energy companies to expand operations, deploy modern technology and reach more households that currently lack reliable power supply.
Officials highlighted that strengthening access to capital for certified service providers will improve project execution timelines and reduce dependence on traditional energy sources that contribute to environmental degradation.
The partnership is expected to attract additional investment into Nigeria’s renewable energy sector while reinforcing public-private cooperation in achieving energy transition goals.
Industry observers described the initiative as a strategic step toward improving energy security and promoting sustainable growth through financial innovation and targeted development funding.
Both institutions affirmed their commitment to monitoring implementation progress to ensure that the allocated funds translate into tangible improvements in electricity access across underserved regions.