Stanbic IBTC, REA Seal N100bn Deal to Boost Nigeria’s Solar Rollout
New revolving loan facility will help developers buy equipment and speed up electricity access under the World Bank-backed DARES programme
The Rural Electrification Agency (REA) has signed a Memorandum of Understanding (MoU) with Stanbic IBTC Bank Limited for a N100 billion project financing facility. The goal is to fix a problem that has long slowed the delivery of power to the country’s unserved and underserved communities.
The agreement was signed at REA’s corporate headquarters in Abuja, according to a statement on Wednesday. Under it, Stanbic IBTC will offer a ₦100 billion revolving loan facility to eligible developers taking part in REA-led electrification programmes. Chief among these is the Distributed Access through Renewable Energy Scale-up (DARES) Project, the World Bank-funded expansion of the Nigeria Electrification Project (NEP).
For years, many developers have held approved projects and grants but lacked the upfront capital to buy equipment and start work.
The loans have a one-year tenor. How much each developer can borrow will be decided case by case, based on the developer’s grant agreement, its capacity and the bank’s credit assessment.
“One of the lessons from our experience under the Nigeria Electrification Project is that having a viable project and an approved grant is not always enough,” said Abba Abubakar Aliyu, Managing Director/CEO of REA. “Developers also need access to the capital required to procure equipment and commence implementation.”
He said the partnership “connects our result-based financing framework with commercial finance, giving credible developers a stronger pathway to move projects from approval to delivery and, ultimately, connect more Nigerians to reliable electricity.”
Richard Inegbedion, Head of Energy and Infrastructure at Stanbic IBTC Bank, said the deal shows the bank’s commitment to infrastructure development and Nigeria’s energy transition.
“The energy access challenge requires strong collaboration between government, developers and financial institutions,” he said. “At Stanbic IBTC, we recognize that renewable energy projects require financing structures that understand both the opportunities and the realities of the sector.”
He added that the partnership creates “a financing platform that can help eligible developers access the capital they need to execute projects, while contributing to the development of sustainable energy infrastructure and economic activity across Nigeria.”
Hakeem Shagaya, Managing Director/CEO of Asolar Systems Nigeria Limited, said well-structured financing will be key to delivering renewable energy at the scale DARES requires.
“For developers, access to finance is one of the most important factors determining how quickly an approved renewable energy project can move into implementation,” Shagaya said. “A financing framework that is aligned with REA’s result-based structure can significantly improve our ability to procure equipment, mobilize resources and deliver projects within the required timelines.”
He described the partnership as one that “brings the developer, government and financial sector closer together around a common objective — delivering reliable electricity to communities that need it.”
