REA Disburses N9 Billion to Power Mini-Grids in Four States
The Rural Electrification Agency (REA) has taken a significant step forward in Nigeria's renewable energy sector by disbursing a total of N9 billion to fund mini-grid projects across four states. This initiative aims to enhance electricity access and promote sustainable energy solutions in rural and underserved areas.
Funding Breakdown and Recipients
In the latest round of disbursements, N7.95 billion was allocated to Havenhill to finance critical equipment for four mini-grid power projects located in Taraba, Kwara, and Kogi states. Additionally, Faraday & Otstred Limited received N1.056 billion for mini-grid installations across three sites in Niger State. These allocations build upon REA's earlier commitments, which included N7.4 billion for Ventura Logistics Services and N3.2 billion for Zanoplus, demonstrating a sustained investment in the renewable energy infrastructure.
Supporting Frameworks and Partnerships
The disbursements are backed by the Distributed Access through Renewable Energy Scale-up (DARES) programme's Performance-Based Grant (PBG) framework. This framework ensures that funds are released based on the achievement of specific performance milestones, promoting accountability and efficiency. Furthermore, the initiative is linked to a recently signed N100 billion Memorandum of Understanding (MoU) with Lotus Bank, highlighting the growing involvement of local financial institutions in supporting Nigeria's energy transition.
Leadership Perspective and Market Impact
REA's Managing Director, Dr. Abba Aliyu, emphasized the importance of this development as a demonstration of consistent capital support for Nigeria's renewable sector. He stated, "What is particularly encouraging here is the consistency; this is not a one-off. It is a pattern of capital being deployed, projects moving forward, and confidence in the system continuing to grow." Dr. Aliyu further explained that for developers, this means access to the equipment and financing needed to deliver projects, while for communities, it translates to faster timelines for reliable power. He added, "For the market, it reinforces the point that local financing is stepping up in a significant way."
Dr. Aliyu also underscored the agency's commitment to enabling local companies to drive the country's renewable energy growth. "This is exactly the kind of energy we hoped to unlock, where Nigerian financial institutions take the lead in powering Nigeria's renewable infrastructure, backed by strong, performance-based frameworks. We are building momentum, and it is beginning to show," he concluded. This strategic approach aims to foster a self-sustaining energy market that leverages domestic resources and expertise.
