The Rural Electrification Agency (REA), an agency of the Federal Government of Nigeria, on Friday revealed that the Japan International Cooperation Agency (JICA) will release $119 million in additional financing to deploy interconnected and isolated mini-grids in Nigeria.
The agency’s Managing Director, Engr. Abba Abubakar Aliyu broke the news in Abuja as REA entered into a N50 billion collaboration agreement with Alpha Morgan Bank to establish a financing support framework that will help accelerate electricity access in unserved and underserved communities across Nigeria.
He said, ‘And we are expecting at any moment from now additional financing of $119 million from JICA that will also be used for the deployment of interconnected mini-grids and isolated mini-grids.’
Under the agreement, Alpha Morgan Bank will provide up to ?50 billion in project 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 ?10 billion per developer, with proposed tenures of 12 to 24 months, subject to the Bank’s credit assessment and approval.
Alpha Morgan Bank will provide up to 70 per cent counterpart funding for eligible projects. The partnership is designed to address one of the major challenges facing renewable energy developers: access to affordable and timely financing.
By improving access to credit, the collaboration is expected to enable developers to procure equipment, complete projects more efficiently and expand electricity services to households, public institutions and businesses in rural and underserved communities.
Aliyu said the collaboration would strengthen private-sector participation in Nigeria’s energy transition and help close the electricity access gap. ‘Access to finance remains critical to the successful delivery and scale-up of decentralised renewable energy projects. This partnership provides a practical financing mechanism that can help developers move from project approval to implementation more quickly, while expanding reliable electricity access to communities that need it most.’ According to Alpha Morgan Bank Managing Director/CEO Ade Buraimo, the partnership reflects the Bank’s commitment to sustainable development through innovative financing. ‘Access to reliable electricity is fundamental to economic growth and improved livelihoods. Through structured financing and advisory support, our collaboration with REA will help bridge the gap between renewable energy projects and the capital required to deliver them.’
The REA boss said the Japan International Cooperation Agency (JICA) will release $119 million in additional financing to deploy interconnected and isolated mini-grids in Nigeria.
At the MOU signing, Alpha Morgan Bank, represented by the Executive Director, Mrs. Doyin Anyaehie, noted that reliable electricity is a basic necessity and critical to economic activity, particularly for SMEs and rural communities that cannot sustainably afford alternative power sources. ‘Alpha Morgan Bank is proud to partner with the REA to provide financing to eligible renewable energy developers under the DARES programme for the provision of reliable electricity to underserved communities.’
The partnership will also provide eligible developers with financial advisory support, while REA will facilitate project approvals, grant agreements, and verification.
The collaboration 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.