A new partnership between the Rural Electrification Agency (REA) and Lotus Bank is set to improve rural electrification in the country with N100 billion in project funding.

Meanwhile, the House of Representatives has explained that its proposal requiring Ministries, Departments and Agencies (MDAs) to source at least 50 per cent of their electricity needs from renewable energy is aimed at strengthening energy security, cutting governance costs and accelerating Nigeria’s transition to sustainable power.

It also issued an ultimatum to the Managing Director of REA, Abba Aliyu, ordering him to appear before the committee on today, at 11.00 a.m., or face immediate arrest by the Inspector-General of Police (IGP).

The N100 billion meant for renewable energy deployment has been described as one of the largest single credit support commitments to Nigeria’s off-grid power sector.

The Memorandum of Understanding (MoU), signed in Abuja, is structured to ease access to affordable short-term debt for equipment procurement and project execution for mini-grid.

The facility will support developers under the Distributed Access to Renewable Energy Scale-up (DARES) programme, a World Bank-backed expansion of the Nigeria Electrification Project aimed at deepening private sector-led electricity access in rural and underserved communities.

Under the arrangement, LOTUS Bank will provide a revolving credit facility of N100 billion, offering up to N8 billion per developer with a tenure of up to 18 months. It will also provide up to 90 per cent counterpart funding for projects approved under result-based financing frameworks, subject to credit risk assessment.

The structure is designed to bridge liquidity gaps between grant approval and revenue generation, a period that has historically slowed deployment timelines.

Aliyu said the agreement directly addresses the debt-financing bottleneck that has constrained renewable energy scale-up.

He noted that while grant funding and technical assistance improved market viability, limited access to working capital continued to delay procurement of solar panels, inverters and balance-of-system components.

LOTUS Bank’s Managing Director, Isiaka Ajani-Lawal, said the bank’s participation reflects a broader strategy to back infrastructure that promotes financial inclusion and supports Micro, Small and Medium-sized Enterprises (MSMEs) in rural economies.

Beyond credit provision, the bank will deploy a collections platform to strengthen project cash flow management and offer international trade finance tools to facilitate equipment importation.

To mitigate risk, REA will prequalify developers, authenticate grant agreements and deploy Independent Verification Agents to confirm project connections before disbursement triggers are met.

SPEAKING at the start of the investigative hearing of the House Committee on Renewable Energy at the National Assembly Complex, Abuja, the Speaker, Abbas Tajudeen, said the initiative reflected the resolve of the 10th Assembly to promote clean energy as a strategic pillar of economic growth.

Represented by the Deputy House Leader, Halims Abdullahi, the Speaker stated that persistent electricity shortages and the heavy reliance on generators by public institutions imposed enormous financial and environmental costs on the nation.

According to him, the Electricity Act 2023 was deliberately designed to provide a holistic and integrated framework that recognises all sources of power generation while mandating the deliberate integration of renewable energy into Nigeria’s energy mix.

He noted that creating a dedicated Committee on Renewable Energy — the first of its kind in Nigeria’s legislative history — underscored the House’s commitment to closely monitor the implementation of the Act’s renewable component and ensure effective oversight of relevant MDAs.

Chairman of the Committee, Victor Ogene, explained that the 50 per cent renewable power proposal was not merely environmentally focused but an economic reform measure designed to reduce diesel and petrol expenditure across MDAs.

He noted that shifting a significant portion of government energy consumption to renewable sources would lower operational costs, reduce carbon emissions and stimulate job creation in solar, wind and other green energy value chains.

Ogene added that the proposal would also encourage investment in decentralised energy solutions such as solar mini-grids and rooftop systems suitable for public institutions.

Both the Speaker and the Committee Chairman emphasised that successful implementation would depend on transparency, strict adherence to due process and strong institutional oversight.

The ongoing investigative hearing is also examining the domiciliation of renewable energy projects in MDAs, foreign grants and investments received in the sector since 2015, and the current level of renewable energy across federal institutions.

The committee maintained that by leading by example, government agencies could drive broader national adoption of renewable energy technologies, reduce pressure on the national grid and contribute meaningfully to Nigeria’s long-term economic sustainability.

The directive to the REA director was issued during an investigative hearing yesterday, following the agency’s persistent failure to honour multiple invitations to account for the administration of hundreds of millions of dollars in international grants and concessional loans intended for Nigeria’s green energy transition.

The Committee Chairman, Ogene, expressed deep dissatisfaction with the agency’s absence, noting that formal invitations were sent and acknowledged on November 3, 2025; December 10, 2025; and February 4, 2026.

“The REA is the lead implementing agency for off-grid electrification and is central to this inquiry,” Ogene stated. “Their failure to appear to account for public resources intended to expand electricity access is unacceptable and an affront to legislative oversight.”