Nigeria’s efforts to expand electricity access through renewable energy have received a major boost following the approval of additional funding from the Japanese International Cooperation Agency (JICA) and a new financing partnership aimed at supporting private-sector developers.
The Rural Electrification Agency (REA) announced that JICA will provide an additional US $119M to support the deployment of interconnected and isolated mini-grid projects across the country. The funding is expected to strengthen ongoing initiatives designed to improve electricity access in communities that remain underserved by the national grid.
REA Managing Director Abba Aliyu said the fresh funding would broaden the financial resources available for renewable energy development and reinforce the agency’s strategy of attracting both local and international investment into the sector.
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Renewable energy solutions
In a separate development, the agency has signed a US $36M financing agreement with Alpha Morgan Bank to accelerate electricity access in unserved and underserved areas. The partnership will establish a financing framework that enables renewable energy developers participating in REA-led programmes, including the Distributed Access through Renewable Energy Scale-up (DARES) Project, to access project funding.
Under the arrangement, eligible developers can obtain revolving loans of up to US $7.2M each, with repayment periods ranging from 12 to 24 months, subject to the bank’s credit evaluation process. Alpha Morgan Bank will also provide up to 70% counterpart funding for qualifying projects.
According to the REA, the initiative is intended to address financing constraints that have often slowed the implementation of renewable energy projects. Improved access to capital is expected to help developers acquire equipment, speed up project execution, and extend electricity services to households, businesses, and public institutions in rural communities.
Aliyu noted that access to financing remains one of the most significant requirements for scaling decentralized renewable energy solutions across Nigeria. He said the partnership would help developers move more quickly from project approval to implementation while supporting the country’s broader goal of closing the electricity access gap.
Alpha Morgan Bank Managing Director Ade Buraimo said the collaboration demonstrates the bank’s commitment to promoting sustainable development through innovative financing solutions. He noted that reliable electricity remains a critical driver of economic growth and improved living standards, adding that the partnership would help connect renewable energy projects with the capital needed for execution.
Executive Director Doyin Anyaehie also emphasized the importance of reliable power supply for economic activities, particularly for small and medium-sized enterprises and rural communities. She said the bank is committed to supporting eligible renewable energy developers under the DARES programme to deliver sustainable electricity solutions to underserved populations.
Beyond financing, the partnership will provide developers with advisory support, while the REA will facilitate project approvals, grant administration, and verification processes. The initiative is expected to strengthen cooperation between public-sector programmes and private-sector finance, helping to accelerate renewable energy deployment and advance Nigeria’s objective of expanding access to reliable and sustainable electricity nationwide.
