- The Rural Electrification Agency (REA) has disbursed ₦3.2 billion to support solar mini-grid deployment in Bauchi State.
- The funding, under the DARES programme, aims to expand energy access and strengthen private sector participation in Nigeria’s off-grid sector.
The Rural Electrification Agency (REA) has disbursed ₦3.2 billion to support solar mini-grid deployment in Bauchi State. The funding targets strategic locations as part of efforts to expand decentralised energy access.
According to the agency, the disbursement reinforces its commitment to providing reliable electricity to unserved and underserved communities. It also supports the use of off-grid solutions across the country.
REA released the funds to Zanoplus to accelerate project implementation. This follows an earlier ₦7.4 billion disbursement to Ventura Logistics Services for a 7MW mini-grid initiative.
Together, both investments signal growing momentum in the agency’s strategy to close Nigeria’s energy gap. They also reflect increased activity in the renewable energy sector.
The agency stated that it is executing the projects under the Distributed Access through Renewable Energy Scale-up (DARES) Programme. The programme promotes private sector participation through partnerships with local financial institutions.
In addition, the funding draws from a N100 billion revolving credit facility. REA and Lotus Bank established this facility through a Memorandum of Understanding signed in February.
Under the arrangement, developers can access up to ₦8 billion for equipment procurement. They can also secure financing tenures of up to 18 months.
Furthermore, Lotus Bank provides up to 90 percent counterpart funding for approved projects. This structure supports result-based financing and reduces risks for developers.
Zanoplus will deploy solar mini-grids with a combined capacity of over 1.2 megawatts-peak. The projects will serve multiple communities across Bauchi State. Specifically, the allocation includes 450kWp for Gabarin East and 400kWp for Futuk. It also covers 200kWp for Gangalawai and 150kWp for Daburai in Gabarin West.
These systems will operate as independent local power networks. They will deliver reliable and clean electricity to communities outside the national grid.
Reacting to the development, REA Managing Director Abba Aliyu said the programme reflects effective execution. He emphasised the importance of efficiency and transparency in delivering results.
According to him, the speed of implementation highlights the strength of local financing capacity. It also shows how the REA continues to drive sector growth. He added that the performance-based financing model directs funding to credible projects. These projects must meet clear delivery milestones before accessing funds.
Aliyu noted that consistent capital flow sends a strong signal to investors. It shows that Nigeria’s renewable energy market remains active and viable. He also commended Nigerian financial institutions for their growing role. He said they now act as key drivers of renewable energy infrastructure development.