Juliet Ezeh
The Rural Electrification Agency has released approximately N9 billion to finance mini-grid electricity projects across Taraba, Kogi, Kwara, and Niger states, marking a significant step toward expanding renewable energy access in Nigeria’s underserved communities. The funding aims to accelerate the deployment of reliable, decentralised electricity solutions, providing much-needed power to areas that have historically been off-grid.
According to a statement made available by the agency, N7.95 billion has been allocated to Havenhill to support four mini-grid power projects across Taraba, Kogi, and Kwara states. An additional N1.056 billion was disbursed to Faraday & Otstred Limited for three mini-grid sites in Niger State. These allocations follow earlier funding approvals, including N7.4 billion for Ventura Logistics Services and N3.2 billion for Zanoplus, reflecting a growing financial commitment to Nigeria’s renewable energy sector.
The disbursements are backed by the Distributed Access through Renewable Energy Scale-up Programme’s Performance-Based Grant framework, supported by a recently signed N100 billion Memorandum of Understanding with Lotus Bank. This innovative financing model incentivises developers to achieve project milestones while ensuring the consistent delivery of electricity solutions to communities.
REA Managing Director Abba Aliyu described the funding as part of a consistent and ongoing flow of capital into Nigeria’s renewable energy sector. “What is particularly encouraging is the consistency; this is not a one-off thing. It is a pattern of capital being deployed, projects moving forward, and confidence in the system continuing to grow,” Aliyu said.
He added that the disbursement provides developers with access to critical equipment and financing, allowing projects to move ahead more quickly. “For communities, this means faster timelines for reliable power. For the market, it reinforces the point that local financing is stepping up in a significant way,” he said.
The REA emphasises that empowering local companies to deliver electricity solutions nationwide is central to its strategy. “This is exactly the kind of energy we hoped to unlock, where Nigerian financial institutions take the lead in powering our renewable infrastructure, backed by strong, performance-based frameworks. We are building momentum, and it is beginning to show,” Aliyu stated.
The agency has repeatedly highlighted its commitment to improving energy access through decentralised power solutions. Mini-grids, particularly solar-powered systems, are seen as critical to closing the electricity gap in rural Nigeria, where grid extension is often costly and time-consuming. By combining renewable energy with local enterprise development, mini-grids provide both economic and social benefits, including job creation, improved education outcomes, and better healthcare services.
Zanoplus, which recently received N3.2 billion, will deploy solar mini-grids in Bauchi State, targeting unserved and underserved communities. These efforts are part of a broader initiative to strengthen energy infrastructure nationwide, ensuring that Nigerians in remote areas can access reliable electricity.
Energy experts note that performance-based financing models like those deployed by the REA are increasingly important in attracting investment to Nigeria’s renewable energy sector. By linking disbursements to project milestones, the framework ensures accountability, reduces project delays, and promotes sustainable development. This approach also encourages local banks to participate actively in energy financing, increasing the pool of domestic capital for renewable projects.
The renewable energy sector in Nigeria has experienced rapid growth in recent years, driven by both government support and private sector innovation. Mini-grids are increasingly recognised as an efficient solution to rural electrification, offering flexibility, scalability, and resilience, particularly in areas with challenging terrain or low population density.
Aliyu emphasised that the disbursement signals a broader trend of private sector engagement in Nigeria’s renewable energy sector. “We are seeing local developers and financiers taking on bigger roles in expanding electricity access. The combination of government support, local expertise, and performance-based grants is creating a virtuous cycle of investment and delivery,” he said.
The REA also highlighted that increased investment in mini-grids contributes to Nigeria’s climate goals by promoting clean energy and reducing reliance on diesel-powered generators. With millions of Nigerians still without access to reliable electricity, solar and other renewable mini-grids are essential in supporting economic growth and improving quality of life.
By deploying N9 billion across multiple states, the agency is not only expanding electricity access but also stimulating local economies. The construction, installation, and operation of mini-grids create jobs and foster skill development, particularly in rural areas where employment opportunities are limited.
Looking ahead, the REA plans to continue leveraging innovative financing models and partnerships with local banks to sustain the rollout of mini-grids nationwide. The agency’s approach demonstrates that with consistent funding, performance monitoring, and strategic oversight, renewable energy projects can deliver measurable results for communities, developers, and the economy at large.
The N9 billion disbursement underscores the Nigerian government’s commitment to closing the energy gap and supporting sustainable, renewable energy solutions. As more projects come online, rural communities can expect improved access to electricity, fostering socioeconomic development and positioning Nigeria as a leader in off-grid renewable energy solutions in Africa.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.