REA, Alpha Morgan Bank Seal N50bn Financing Deal To Close Electricity Gap

The Rural Electrification Agency (REA) has signed a N50 billion project financing agreement with Alpha Morgan Bank to accelerate the deployment of renewable energy projects and expand electricity access to unserved and underserved communities across Nigeria.

The agreement was signed on Friday in Abuja.

Speaking at the signing ceremony, the managing director/CEO of REA, Abba Abubakar Aliyu, under the agreement, Alpha Morgan Bank will make available up to N50 billion in financing to eligible renewable energy developers participating in REA-led programmes, including the Distributed Access through Renewable Energy Scale-up (DARES) Project.

Eligible developers will have access to revolving loans of up to N10 billion each, with proposed tenures of between 12 and 24 months, subject to the bank’s credit assessment and approval.

The bank will also provide up to 70 per cent counterpart funding for qualifying projects.

Under the framework, REA will handle project approvals, grant agreements and verification, while Alpha Morgan Bank will provide financing and financial advisory support to eligible developers.

Aliyu said access to finance remained critical to the delivery and scale-up of decentralised renewable energy projects, describing the partnership as a practical mechanism to help developers move more quickly from project approval to implementation, while expanding reliable electricity access to the communities that need it most.

He noted that Nigeria’s electricity demand would continue to rise rapidly, driven by population growth, expanding electrification, digitalisation, artificial intelligence, data centres, and the increasing electrification of transportation, agriculture and healthcare.

He added that the declining cost of solar power, alongside advances in photovoltaic technology and battery storage, was positioning solar energy as a dominant source of future electricity generation in Nigeria, and that closing the country’s electricity access and reliability gaps would require greater participation from domestic financial institutions.

Aliyu said the partnership also opened opportunities for Alpha Morgan Bank beyond conventional project financing, pointing to areas such as renewable energy asset management, operation and maintenance, revenue collection, local manufacturing and financial inclusion. He disclosed that REA would soon launch the Renewable Energy Asset Management Company (RAMCO), which is expected to support the sustainability of renewable energy assets, facilitate capital recycling, and help attract additional private-sector financing.

He further said mini-grid projects were already creating opportunities for fintech firms, energy service companies and local manufacturers, while helping rural businesses gain access to productive-use equipment.

REA, he said, was nearing completion of 288 megawatts of interconnected mini-grid projects, with commissioning expected to begin as early as November, after which a fresh round of interconnected mini-grid projects would commence.

Speaking on behalf of Alpha morgan Bank, the managing director/CEO, Ade Buraimo, said reliable electricity was a basic necessity and critical to economic activity, particularly for small and medium enterprises and rural communities that cannot afford alternative power sources.

Buraimo, who was represented by the executive director, Doyin Anyaehie, said the bank was proud to partner with REA to provide financing to eligible renewable energy developers under the DARES programme to deliver reliable electricity to underserved communities.

In his remarks, Buraimo said the partnership was driven by the need to address the financing constraints that have historically limited investment in Nigeria’s power sector.

He described the bank’s N50 billion commitment as more than a financing exercise, saying it was an effort to generate measurable social and economic impact in rural communities.

He pointed to the effects of inadequate electricity on rural businesses, healthcare facilities and schools, noting that reliable power could unlock economic opportunities and improve livelihoods.

“Our success is going to go beyond this table, beyond just signing this MOU,” Buraimo said.

“It’s what we can look to one or two years from now and say because we provided this financing, because this developer was able to develop their projects in the renewable power projects that they are building, this is the impact that we can point to.”

Buraimo added that the bank was ready to work with developers whose renewable energy projects had sound fundamentals, and that it could structure financing and, in some cases, subsidise costs given the wider national-development implications of expanding electricity access. He said Alpha Morgan Bank would also explore opportunities beyond the immediate financing facility, describing the partnership with REA as the beginning of a broader relationship.

According to him, access to reliable electricity was fundamental to economic growth and improved livelihoods, adding that through structured financing and advisory support, the collaboration with REA would help bridge the gap between renewable energy projects and the capital required to deliver them.

The partnership is expected to strengthen the link between public-sector funding and private-sector finance, accelerate renewable energy deployment, and support the federal government’s objective of expanding reliable and sustainable electricity access across Nigeria.