Nigeria’s Rural Electrification Agency of Nigeria (REA) has signed a ₦50 billion financing partnership with Alpha Morgan Bank to accelerate renewable energy deployment and expand electricity access in unserved and underserved communities.
Under the agreement, Alpha Morgan Bank will provide up to ₦50 billion in project financing to eligible renewable energy developers participating in REA-led programs, including the Distributed Access through Renewable Energy Scale-up (DARES) Project. The facility offers revolving loans of as much as ₦10 billion per developer, with tenures of 12 to 24 months subject to credit approval. The bank will supply up to 70% of counterpart funding for qualifying projects.
REA will handle project approvals, grant agreements and verification, while Alpha Morgan Bank provides the financing and financial advisory support. The partnership aims to bridge funding gaps for developers, speed up delivery of decentralized renewable energy infrastructure and support the federal government’s goal of broader, more reliable electricity access.
REA Managing Director Abba Aliyu said the deal addresses a critical financing shortfall that has slowed project implementation. He noted that rising electricity demand—driven by population growth, digitalization, data centers and electrification across transport, agriculture and healthcare—requires significantly higher investment, particularly from domestic financial institutions.
“Access to finance remains critical to the successful delivery and scale-up of decentralised renewable energy projects,” Aliyu said at the signing ceremony in Abuja. He added that falling solar costs and advances in photovoltaic technology and battery storage are positioning renewables as a key source of future generation. REA is also preparing to launch the Renewable Energy Asset Management Company (RAMCO) to improve asset sustainability, recycle capital and attract further private investment.
Alpha Morgan Bank Managing Director Ade Buraimo, represented by Executive Director Doyin Anyaehie, described the commitment as an effort to generate measurable economic and social impact rather than pure financing. He highlighted the drag that unreliable power places on rural businesses, healthcare facilities and schools, and said the bank is prepared to structure deals for projects with sound fundamentals, including potential cost subsidies given the national development benefits.
The partnership comes as REA nears completion of 288 megawatts of interconnected mini-grid projects, with commissioning expected to begin as early as November.
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