The Rural Electrification Agency (REA) has launched a $188 million green finance investment facility (GFiF) aimed at mobilising private and institutional capital for distributed renewable energy. The innovation is in partnership with Barton Heyman Limited, UK PACT, First City Monument Bank (FCMB) and ARM Harith Infrastructure Investment Limited (ARMHIIL).

The finance initiative, unveiled in Lagos, is designed to finance 191 megawatts (MW) of distributed solar projects targeting households, communities and businesses as part of efforts to expand electricity access through decentralised renewable energy systems.

This is in line with the agency’s Distributed Access through Renewable Energy Scale-Up (DARES) programme, a national framework focused on accelerating energy in underserved and off-grid communities.

The Managing Director of the REA, Abba Aliyu, said the facility directly targets one of the sector’s biggest constraints, access to finance.

“The GFiF can tackle access to finance, one of the main barriers to renewable energy deployment. Today’s launch is the outcome of a strategic partnership created to ensure communities lacking reliable power can access electricity. We are proud of what this facility signifies for Nigeria’s energy future,” he stated.

Managing Partner of Barton Heyman Limited, Olumide Lala, said the initiative would unlock large-scale private capital in the renewable energy sector.

“The GFiF is more than a financing arrangement; it represents direct support for over one million Nigerians. Nigeria’s distributed renewable energy sector can be financed using a private-sector framework that leverages sovereign pipelines, results-based funding, and commercial loans to attract private capital at the national level. This is our initial step to raise $40 billion to finance 20 gigawatts of distributed renewable energy,” he said

Senior Partner at Barton Heyman, Anthony Feyitimi, said the platform links energy investment directly to economic productivity.

“The Green Finance and Investment Facility is not simply about clean energy. It is about what reliable, distributed power makes possible for Nigeria’s economy. Every megawatt we finance is a business that can operate, a supply chain that can function, a community that can compete.

“We have structured a blended finance platform that brings together sovereign pipelines, results-based funding, and commercial capital into a single, replicable facility. The GFIF Pilot is our first $188 million step. The platform’s ambition is $40 billion and 20 gigawatts. We are building it from Nigeria, for Nigeria.”

Senior Vice President and Divisional Head of Business Banking Group, FCMB, George Ogbonnaya, said the bank has deepened its renewable energy financing portfolio.

“FCMB has established itself as a leading renewable energy financing institution, serving as a first-time lender to many players driving growth in the sector. We have committed N100 billion in debt financing for DARES.

“Currently, we are funding over eight developers under the DARES isolated mini-grid Performance-Based Grant programme and finalising funding for another seven developers. We will continue to support developers in scaling and meeting electrification targets, improving the quality of life in rural and peri-urban communities. This aligns strongly with our purpose of fostering sustainable growth within the communities we serve,” he said.