REA Disburses ₦9 Billion for Solar Mini-Grid Projects in Four States
The Rural Electrification Agency (REA) has disbursed a total of 9 billion naira to support the rollout of solar mini-grid projects across Taraba, Kogi, Kwara, and Niger states. This initiative is aimed at expanding electricity access to underserved communities, marking a significant step in Nigeria's renewable energy expansion efforts.
Funding Details and Programme Overview
According to the REA, the funding is part of its Distributed Access through Renewable Energy Scale-up Programme. This is a performance-based initiative designed to accelerate the deployment of clean energy solutions in areas with limited or no connection to the national grid. The disbursement is backed by a 100 billion naira financing agreement with Lotus Bank, reflecting increased private sector participation in Nigeria's renewable energy sector.
A breakdown of the funding shows that a significant portion was allocated to project developers for the procurement of equipment and installation of mini-grid infrastructure across multiple rural communities. The projects are expected to provide electricity to households, small businesses, and public institutions such as schools and healthcare centres.
Statements from REA Leadership
Managing Director of the REA, Abba Aliyu, stated that the release of funds would accelerate timelines for project delivery in off-grid locations. He emphasized the agency's commitment to improving energy access through sustainable solutions.
Broader Context and Government Efforts
This intervention comes amid renewed efforts by the federal government to address Nigeria's electricity challenges through a mix of grid and off-grid solutions. Just days earlier, President Bola Tinubu approved a 3.3 trillion naira payment plan to settle legacy debts in the power sector, targeting improved liquidity for generation companies.
The REA disbursement follows a series of similar funding rounds under the agency's electrification programmes, including the Nigeria Electrification Project, which has supported the deployment of mini-grids and standalone solar systems in rural communities. Under these programmes, private developers are selected through a competitive process and receive performance-based grants tied to project delivery milestones.
Key Points:
- The disbursement targets four states: Taraba, Kogi, Kwara, and Niger.
- It is part of the Distributed Access through Renewable Energy Scale-up Programme.
- Funding is backed by a 100 billion naira agreement with Lotus Bank.
- Projects aim to electrify households, businesses, and public institutions.
- This aligns with broader government efforts to improve power sector liquidity.
