Rural Electrification Agency Commits N9 Billion to Two Firms for Nigeria's Mini-Grid Expansion

The Rural Electrification Agency (REA) has marked another significant achievement in its efforts to fund renewable energy initiatives nationwide.

In a recent disbursement, the agency allocated N7.95 billion to Havenhill to procure essential equipment for four mini-grid power projects spanning Taraba, Kwara, and Kogi States. Additionally, N1.056 billion was released to Faraday & Otstred Limited for the development of mini-grids at three locations in Niger State.

These allocations follow earlier announcements by the REA regarding N7.4 billion in financing for Ventura Logistics Services and N3.2 billion for Zanoplus.

The funding is made possible through the Distributed Access through Renewable Energy Scale-up (DARES) programme's Performance-Based Grant (PBG) framework and is a direct outcome of a recent N100 billion Memorandum of Understanding (MoU) signed with Lotus Bank.

REA's Managing Director, Dr. Abba Aliyu, expressed satisfaction with the continuous investment flowing into Nigeria's renewable energy sector.

"The consistency is particularly commendable; this is not an isolated event but rather a developing trend where capital is being deployed, projects are progressing, and confidence in the system is steadily increasing."

Aliyu further stated, "For project developers, this translates into access to the necessary equipment and financial support to execute their plans. For communities, it means a quicker realization of reliable power supply. And for the market, it underscores the growing role of local financing in a substantial manner."

He emphasized the REA's dedication to empowering indigenous companies to drive Nigeria's power sector, suggesting that Nigerian financial institutions should spearhead the development of the nation's renewable infrastructure.

"This is precisely the kind of momentum we aimed to foster, where Nigerian financial institutions take the lead in powering Nigeria’s renewable infrastructure, supported by a robust, performance-driven framework."