N100bn Credit Facility Targets Faster Delivery of Renewable Energy Projects
A new N100bn financing arrangement will give eligible REA-backed renewable energy developers access to project capital.
A N100bn credit arrangement has been established to give eligible renewable energy developers working with the Rural Electrification Agency access to financing for project implementation in Nigeria.
Stanbic IBTC Bank is providing the funding through a revolving facility that will run for one year. Developers participating in REA-supported electrification programmes, including the World Bank-backed DARES initiative, may use the financing for needs such as purchasing equipment. DARES refers to the Distributed Access through Renewable Energy Scale-up programme.
Access to the facility will vary from one developer to another. The amount offered will depend on the applicable grant arrangement, the developer's capacity and the bank's assessment of the applicant's creditworthiness. This means the N100bn represents the overall financing pool rather than a fixed amount available to every participating company.
REA Managing Director and Chief Executive Officer Abba Aliyu said developers can face funding difficulties even after their projects and grants have been approved. Drawing on lessons from the Nigeria Electrification Project, he explained that project approval alone may not provide the working capital needed to acquire equipment and begin construction or deployment.
Stanbic IBTC's Head of Energy and Infrastructure, Richard Inegbedion, said the financing arrangement is intended to give qualified developers a structure through which they can obtain capital for renewable energy projects. He also linked the initiative to wider cooperation among government institutions, developers and financial organisations in addressing electricity access challenges.
Hakeem Shagaya, Managing Director and Chief Executive Officer of Asolar Systems Nigeria Limited, spoke from the developer perspective. He said the availability of appropriately structured finance can influence how quickly an approved renewable energy project moves from planning into implementation. He also said a funding framework aligned with REA's approach could help developers secure equipment, mobilise resources and meet project timelines.
The arrangement includes services beyond the credit facility. Stanbic IBTC is expected to provide a collection platform intended to support project sustainability and financial inclusion. The bank will also make financial advisory services available, including assistance with connections to equipment manufacturers and international trade tools where feasible.
REA will remain responsible for programme-level controls such as screening participating developers, approving projects, managing grant agreements and confirming relevant documentation. According to the agency, the financing partnership is intended to reduce delays linked to access to debt and help private developers mobilise the resources required for electricity projects.
The memorandum governing the arrangement is expected to remain active for the duration of the DARES programme. It will conclude after the programme ends and financing issued under the structure has been repaid, subject to the terms agreed by the parties.