REA disburses N3.2bn for mini-grid projects in Bauchi

The Rural Electrification Agency (REA) says it has disbursed the sum of N3.2 billion for the rapid deployment of solar mini-grid projects across strategic locations in Bauchi State, marking a further step in its push to expand decentralised energy access.

The agency said the capital injection underscored its continued commitment to delivering reliable electricity to unserved and underserved communities through off-grid solutions.

The funds, disbursed to Zanoplus, follow an earlier N7.4 billion release to Ventura Logistics Services for the development of a 7MW mini-grid initiative, highlighting growing momentum in the agency’s efforts to bridge Nigeria’s energy gap.

According to a statement from the Agency on Sunday, the interventions are executed under the Distributed Access through Renewable Energy Scale-up (DARES) Program, a partnership designed to catalyse private sector participation through the support of indigenous financial institutions.

The funding mechanism is also rooted in a Memorandum of Understanding (MoU) signed in February between the REA and Lotus Bank, which established a N100 billion revolving credit facility.

Under this framework, developers can access up to ₦8 billion in equipment procurement financing with tenures of 18 months, alongside Lotus Bank providing up to 90% counterpart funding for projects approved through result-based financing.

The deployment by Zanoplus is expected to transform the socio-economic landscape of Bauchi State by delivering a combined capacity of over 1.2MWp.

Specific allocations include 450kWp for Gabarin East, 400kWp for Futuk, 200kWp for Gangalawai, and 150kWp for Daburai (Gabarin West). These systems operate as integrated local generation and distribution networks with capacities below 1MW, functioning independently of the national grid to provide reliable, clean energy directly to numerous end-users in isolated regions.

Reflecting on the progress of the DARES Program, Abba Aliyu, Managing Director of the REA, emphasised that the true success of these disbursements lies in the efficiency and integrity of the process.

He noted that the speed and transparency of execution demonstrate the vibrancy of the local financing capacity currently being catalyzed by the REA.

According to Aliyu, this momentum proves that a performance-based financing framework can effectively direct capital toward projects that are credible, ready for implementation, and strictly aligned with delivery milestones.

The managing director further highlighted that the consistent flow of capital sends a powerful signal to the global and local investment community that the Nigerian renewable energy market is active and the underlying structures are working.

He lauded the role of Nigerian financial institutions, which are increasingly transitioning from mere participants to primary drivers of renewable energy infrastructure.