One of Nigeria’s non-interest banking service providers, LOTUS Bank Limited, has entered into a strategic partnership with the Rural Electrification Agency to expand access to renewable energy solutions in underserved communities.
The agreement was formalised through a Memorandum of Understanding signed in Abuja. Under the deal, LOTUS Bank will provide funding of up to N100 billion to support certified Renewable Energy Service Companies.
Speaking at the signing ceremony, the Managing Director and Chief Executive Officer of LOTUS Bank, Isiaka Ajani-Lawal, described the partnership as a reflection of the bank’s mission to use ethical finance to address 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,” he said.
Ajani-Lawal noted that the collaboration, particularly under the DARES programme, demonstrates the bank’s commitment to advancing sustainable development goals while promoting financial inclusion.
“We believe non-interest finance must go beyond innovation; it must deliver tangible socio-economic value to all segments of society,” he added.
In his remarks, the Managing Director and Chief Executive Officer of REA, Abba Aliyu, highlighted the need to address financing challenges faced by off-grid energy developers.
“While Nigeria has made strides in expanding energy access, financing remains a key constraint for Renewable Energy Service Companies. Collaborations like this are essential in unlocking private sector investment and delivering sustainable energy solutions at scale,” he said.
The partnership is expected to accelerate the delivery of clean energy projects, reduce financing bottlenecks and stimulate private sector participation in Nigeria’s power sector.
It also aligns with Nigeria’s National Electrification Strategy and Implementation Plan and contributes to Sustainable Development Goal 7, which seeks to ensure access to affordable, reliable and clean energy for all.
Since its establishment in 2021, LOTUS Bank has positioned itself as a bank focused on ethical and inclusive finance. The institution has prioritised financial inclusion through innovative non-interest products tailored to individuals, women, youth and micro, small and medium-sized enterprises.
The bank has also expanded digital access to its services and promoted financial literacy initiatives aimed at deepening understanding of non-interest banking principles.
With the new renewable energy financing initiative, LOTUS Bank is further strengthening its strategy to support projects with measurable social, environmental and economic impact across Nigeria.
