Electricity For Underserved Communities: REA, Alpha Morgan Bank Collaborate On ₦50 Billion Financing Facility To Accelerate Access

The Rural Electrification Agency (REA), has endorsed a collaboration agreement worth N50 billion with Alpha Morgan Bank to establish a financing support framework to  accelerate electricity access in unserved and underserved communities across Nigeria.

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.

Speaking on the partnership, the Managing Director/CEO of REA, Abba Abubakar 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 decentralized 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”, he said according to a statement by the agency management.

The Managing Director/CEO of Alpha Morgan Bank, Ade Buraimo, explained that 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.”

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.

She said, “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, accelerating renewable energy deployment and supporting the Federal Government’s objective of expanding reliable and sustainable electricity access across Nigeria.