LOTUS Bank, REA collaborate on N100bn renewable energy financing
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One of Nigeria’s non-interest banking service providers, LOTUS Bank Limited, has entered into a strategic partnership with the Rural Electrification Agency, aimed at expanding access to renewable energy solutions across underserved communities.
According to a statement on Monday, LOTUS Bank signed a Memorandum of Understanding with REA in Abuja, under which it will provide accessible funding of up to N100bn to empower certified Renewable Energy Service Companies.
Speaking during the signing of the deal, the Managing Director and Chief Executive Officer of LOTUS Bank, Dr Isiaka Ajani-Lawal, described the collaboration as a clear reflection of the bank’s mission to harness ethical finance to address critical, important and national development needs.
“LOTUS Bank was established to redefine the impact that financial institutions can have on the society we serve, not simply through financing, but through partnership, empowerment, and shared prosperity.“Our involvement with REA and the DARES programme underscores our commitment to supporting sustainable development goals while driving financial inclusion across Nigeria. We believe non-interest finance must go beyond innovation; it must deliver tangible socio-economic value to all segments of society,” Ajani-Lawal said.
In his remarks at the event, the Managing Director and Chief Executive Officer of the REA, Abba Aliyu, emphasised the importance of addressing financing barriers for off-grid energy developers.
“While Nigeria has made strides in expanding energy access, financing remains a key constraint for RESCOs. Collaborations like this are essential in unlocking private sector investment and delivering sustainable energy solutions at scale,” he said.
The partnership of the agency and the bank is expected to accelerate clean energy project delivery, reduce financing bottlenecks, and stimulate private sector participation, a development that supports Nigeria’s National Electrification Strategy and Implementation Plan and contributes to Sustainable Development Goal 7 for affordable, reliable, and clean energy for all.
LOTUS Bank’s expansion into renewable energy financing aligns with its broader strategy to deepen ethical and inclusive finance by supporting initiatives that have measurable social, environmental, and economic impact.
Since its inception in 2021, the bank has positioned itself as a ‘bank for all’ with a strong focus on financial inclusion through innovative non-interest products designed for individuals, women, youth, and MSMEs; community empowerment and corporate social responsibility initiatives; expansion of digital accessibility and making ethical banking more accessible to people in urban and underserved locations nationwide; and financial literacy campaigns and stakeholder engagement to deepen understanding and adoption of non-interest banking principles.
