REA Releases N3.2bn for Solar Mini-Grid Rollout in Bauchi
The Rural Electrification Agency has disbursed a fresh N3.2 billion to Zanoplus for the deployment of solar mini-grid projects in key communities across Bauchi State.
The funding is part of ongoing efforts to expand decentralised energy access and follows an earlier N7.4 billion disbursement to Ventura Logistics Services for a 7MW mini-grid project.
Both disbursements were made under the Distributed Access through Renewable Energy Scale-up Programme, an initiative aimed at boosting private sector participation in the renewable energy space through support from local financial institutions.
The financing arrangement is backed by a Memorandum of Understanding signed in February between the REA and Lotus Bank to establish a N100 billion revolving credit facility.
Through the arrangement, developers can access up to N8 billion for equipment procurement financing over an 18-month period, while Lotus Bank provides up to 90 per cent counterpart funding for projects approved under the result-based financing model.
Zanoplus’ project is expected to deliver more than 1.2MWp of electricity across several communities in Bauchi State. The allocation includes 450kWp for Gabarin East, 400kWp for Futuk, 200kWp for Gangalawai, and 150kWp for Daburai in Gabarin West.
The mini-grids are designed as local generation and distribution systems operating independently of the national grid, supplying clean and reliable power to underserved and remote areas.
REA Managing Director, Abba Aliyu, said the progress recorded under the DARES Programme reflects the efficiency and transparency of the agency’s implementation process.
According to him, the pace of the disbursements shows that local financing for renewable energy projects is gaining momentum and that performance-based financing can successfully support credible projects tied to clear delivery milestones.
Aliyu added that the steady flow of funding sends a strong message to both local and international investors that Nigeria’s renewable energy sector remains active and increasingly attractive.
He also commended Nigerian financial institutions for taking on a bigger role in driving renewable energy infrastructure development across the country.
The REA said its collaboration with financial partners is expected to help scale up electricity access and support the broader goal of achieving universal energy access nationwide.
