The Rural Electrification Agency (REA), in collaboration with Barton Heyman Limited, UK PACT, First City Monument Bank (FCMB), and ARM Harith Infrastructure Investment Limited (ARMHIIL), has introduced a $188 million Green Finance Investment Facility (GFiF) designed to mobilize private and institutional capital for distributed renewable energy deployment.
Blended Finance Platform Unveiled in Lagos
The blended finance platform, unveiled in Lagos, is structured to finance 191 megawatts (MW) of distributed solar projects targeting households, communities, and businesses. This initiative is part of broader efforts to expand electricity access through decentralized renewable energy systems. It aligns with the Distributed Access through Renewable Energy Scale-Up (DARES) programme, a national framework focused on accelerating energy access in underserved and off-grid communities.
Stakeholders from government, finance, and development institutions emphasized that the facility represents a critical step toward addressing Nigeria's energy access deficit by unlocking scalable financing for renewable energy infrastructure.
Addressing Key Barriers
The Managing Director of the REA, Abba Aliyu, stated that the facility directly targets one of the sector's biggest constraints: access to finance. “The GFiF can tackle access to finance, one of the main barriers to renewable energy deployment. Today’s launch is the outcome of a strategic partnership created to ensure communities lacking reliable power can access electricity. We are proud of what this facility signifies for Nigeria’s energy future,” he said.
Aliyu explained that the GFiF is designed as a long-term institutional framework to replace fragmented project-based financing with a scalable and sustainable ecosystem capable of attracting blended capital. He added that the REA will anchor project pipelines and strengthen results-based financing structures to improve investor confidence and delivery efficiency in the sector.
Private Sector Framework
Managing Partner of Barton Heyman Limited, Olumide Lala, said the initiative is structured to unlock large-scale private capital for the energy transition. “The GFiF is more than a financing arrangement; it represents direct support for over one million Nigerians. Nigeria’s distributed renewable energy sector can be financed using a private-sector framework that leverages sovereign pipelines, results-based funding, and commercial loans to attract private capital at the national level. This is our initial step to raise $40 billion to finance 20 gigawatts of distributed renewable energy,” he noted.
Senior Partner at Barton Heyman, Anthony Feyitimi, highlighted that the platform links energy investment directly to economic productivity. “The Green Finance and Investment Facility is not simply about clean energy. It is about what reliable, distributed power makes possible for Nigeria’s economy. Every megawatt we finance is a business that can operate, a supply chain that can function, a community that can compete. We have structured a blended finance platform that brings together sovereign pipelines, results-based funding, and commercial capital into a single, replicable facility. The GFIF Pilot is our first $188 million step. The platform’s ambition is $40 billion and 20 gigawatts. We are building it from Nigeria, for Nigeria.”
FCMB's Commitment
Senior Vice President and Divisional Head of Business Banking Group, FCMB, George Ogbonnaya, said the bank has deepened its renewable energy financing portfolio. “FCMB has established itself as a leading renewable energy financing institution, serving as a first-time lender to many players driving growth in the sector. We have committed N100 billion in debt financing for DARES. Currently, we are funding over eight developers under the DARES isolated mini-grid Performance-Based Grant programme and finalising funding for another seven developers. We will continue to support developers in scaling and meeting electrification targets, improving the quality of life in rural and peri-urban communities. This aligns strongly with our purpose of fostering sustainable growth within the communities we serve,” he said.
He added that FCMB has financed more than 42 mini-grid projects and is supporting efforts to connect over two million households nationwide.
Call for Collaboration
Other stakeholders, including ARM Harith Infrastructure Investment Limited, UK PACT, and the Lagos State Government’s climate change office, called for stronger collaboration, policy alignment, and sustained investment to scale renewable energy adoption. Participants agreed that blended finance initiatives such as GFiF remain critical to de-risking investment, attracting private capital, and accelerating clean energy deployment across underserved communities.
