REA and FCMB Launch ₦100 Billion Renewable Energy Fund to Power Two Million Nigerian Homes
In a strategic move to expand electricity access across Nigeria, the Rural Electrification Agency (REA) and First City Monument Bank (FCMB) have partnered to launch a ₦100 billion financing facility. This initiative, unveiled on June 19, 2025, at FCMB’s headquarters in Lagos, aims to support the Distributed Access through Renewable Energy Scale-Up (DARES) project. The facility is designed to deliver renewable electricity to two million households in unserved and underserved communities nationwide.
The collaboration is anchored on a private sector-led approach, where FCMB will offer a revolving loan facility of up to ₦1 billion per eligible mini-grid developer. This funding will boost the rollout of interconnected and standalone renewable mini-grids, productive-use energy projects, and other infrastructure. The initiative also builds on the $750 million DARES funding support from the World Bank and is backed by the Federal Government under the leadership of President Bola Ahmed Tinubu.
Key figures at the launch, including REA MD Abba Aliyu and FCMB CEO Yemisi Edun, highlighted the partnership’s role in solving one of the sector’s major bottlenecks—access to finance. They emphasized that this joint effort will not only improve energy access but also stimulate economic activities, foster enterprise growth, and uplift rural and peri-urban living standards. The project aligns with national goals to power over 17 million Nigerians who still lack electricity.
A standout feature of the initiative is the establishment of a “Deal Room”—a platform where developers can engage directly with REA and FCMB to better understand financing structures, disbursement processes, and project eligibility criteria. This ensures transparency and streamlines access to funding for developers working within the DARES framework.
The structure of the fund includes FCMB financing up to 70% of the approved project cost, while REA will provide performance-based grants to mitigate investment risk. The alliance signals a new era of public-private synergy in Nigeria’s energy sector, laying a foundation for inclusive growth, greater energy equity, and expanded investment in clean, sustainable power solutions.