The Rural Electrification Agency (REA) has secured a ₦100bn revolving financing facility from Stanbic IBTC Bank to help renewable energy developers procure equipment and accelerate electricity projects in unserved and underserved communities across Nigeria. The agreement was signed on October 7, 2026, at REA’s headquarters in Abuja.

Under the agreement, eligible developers participating in REA-led programmes, including the Distributed Access through Renewable Energy Scale-up (DARES) project, can access financing for approved renewable energy projects. The facility has a one-year tenor, while the amount available to each developer will be determined based on the project’s grant agreement, the developer’s capacity and Stanbic IBTC’s credit assessment.

The financing is designed to address a common challenge in Nigeria’s renewable energy sector: securing capital between project approval and actual implementation. Having an approved project or grant does not necessarily give developers the cash needed to purchase equipment and begin construction.

DARES is a $750m World Bank-supported programme targeting more than 17.5 million Nigerians through distributed renewable energy, including solar hybrid mini-grids and standalone solar systems. Its targets include deploying about 1,225 mini-grids, powering nearly 237,000 MSMEs and adding about 465MW of renewable energy capacity.

Beyond the loan facility, Stanbic IBTC will provide a collection platform, financial advisory support, links between developers and equipment manufacturers, and international trade tools where applicable. REA will remain responsible for programme oversight, including developer prequalification, project approvals, grant agreements and verification of connections.

The deal also fits into a wider push to bring more commercial finance into Nigeria’s renewable energy sector. Earlier in 2026, REA secured another ₦100bn financing partnership with Lotus Bank for DARES developers.

For renewable energy developers, the significance of the Stanbic facility is therefore less about the headline ₦100bn figure alone and more about whether it can help approved projects move faster from paperwork to equipment procurement, construction and ultimately electricity connections.