REA CONTINUES TO POWER NIGERIA: DISBURSES SECOND ₦3.2BN FOR 1.2MWp BAUCHI MINI-GRID PROJECT
GREATRIBUNETVNEWS–THE Rural Electrification Agency (REA) has disbursed ₦3.2 billion to Zanoplus for a 1.2MWp solar mini-grid project in Bauchi State, marking the second significant investment in the region.
This follows a previous ₦7.4 billion disbursement to Ventura Logistics Services for a 7MW mini-grid initiative, showcasing REA’s commitment to decentralized energy solutions .
Both interventions are executed under the Distributed Access through Renewable Energy Scale-up (DARES) Program, a transformative partnership designed to catalyze private sector participation through the support of indigenous financial institutions.
The funding mechanism is rooted in a landmark Memorandum of Understanding signed in February between the REA and Lotus Bank, which established a ₦100 billion revolving credit facility.
Key Highlights:
– Second Phase: This project is part of the Distributed Access through Renewable Energy Scale-up (DARES) Program, aiming to enhance energy access in unserved and underserved communities.
– Funding Mechanism: ₦100 billion revolving credit facility with Lotus Bank, offering up to ₦8 billion in equipment procurement financing.
– Project Impact: Delivers reliable, clean energy to isolated regions, transforming socio-economic landscapes.
REA’s Managing Director, Abba Aliyu, emphasized the efficiency and integrity of the process, highlighting the vibrancy of local financing capacity. This initiative is expected to benefit numerous households, MSMEs, and public facilities in Bauchi State
The deployment by Zanoplus is set 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, the Managing Director of the REA, Abba Aliyu, emphasized 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 this 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 proactive role of Nigerian financial institutions, which are increasingly transitioning from mere participants to primary drivers of renewable energy infrastructure.
By aligning performance with streamlined financing, the REA and its partners aim to unlock the necessary scale to achieve universal energy access across the federation.
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