Nigeria’s REA Disburses ₦3.2 Billion for Nigeria solar mini-grids in Bauchi State
Nigeria is taking a significant step forward in its mission to illuminate its rural communities. The Rural Electrification Agency (REA) has officially disbursed ₦3.2 billion to the energy company Zanoplus for the development and deployment of solar mini-grids across several underserved communities in Bauchi State. This move marks a crucial advancement in the nation’s strategy to provide reliable and clean energy to those living beyond the reach of the national grid.
The DARES Programme: Powering Progress with Nigeria solar mini-grids
This substantial funding is a key component of the Distributed Access through Renewable Energy Scale-up (DARES) programme. The initiative is designed to accelerate private sector-led provision of electricity to rural and underserved areas. The Bauchi project, financed through this disbursement, will see the installation of solar mini-grids with a combined capacity exceeding 1.2 megawatts-peak (MWp).
These independent power systems are set to bring sustainable electricity to four strategic locations:
* Gabarin East: 450 kWp
* Futuk: 400 kWp
* Gangalawai: 200 kWp
* Daburai (Gabarin West): 150 kWp
By operating independently of the national grid, these mini-grids will offer a dependable energy source, empowering local economies, improving quality of life, and creating new opportunities for residents and small businesses.
A Landmark Financial Partnership for Nigeria solar mini-grids
The financial muscle behind this project stems from a groundbreaking Memorandum of Understanding (MoU) signed in February between the REA and Lotus Bank. This agreement established a ₦100 billion revolving credit facility dedicated to financing renewable energy projects.
Under this framework, developers like Zanoplus can access vital capital for equipment and deployment. The model allows for financing of up to ₦8 billion over an 18-month period, with Lotus Bank providing as much as 90% in counterpart funding. This results-based financing approach ensures accountability and drives the efficient completion of projects.
Building on a Foundation of Success with Nigeria solar mini-grids
The disbursement for the Bauchi project is part of a larger, sustained push by the REA. It follows a recent ₦7.4 billion allocation to Ventura Logistics Services for a 7 MW mini-grid project in Ebonyi State, also under the DARES programme. This pattern of significant investment underscores a clear and determined effort to scale up rural electrification across Nigeria.
Abba Aliyu, the Managing Director of REA, commented on the development, highlighting it as proof of the agency’s commitment to transparent and efficient implementation. He noted the growing momentum in local financing and the increasing attractiveness of Nigeria’s renewable energy sector to investors. Aliyu also commended the vital role that financial institutions are playing in helping the nation move closer to its goal of universal energy access.
This strategic investment in Bauchi State is more than just an infrastructure project; it is a catalyst for socio-economic development, promising a brighter, more empowered future for thousands of Nigerians.
