REA Disburses ₦9 Billion for Solar Mini-Grids Across Four States

The Rural Electrification Agency (REA) has reached a major milestone in its mission to close Nigeria’s energy gap, announcing the disbursement of ₦9 billion to fund solar mini-grid projects in Taraba, Kogi, Kwara, and Niger States. This strategic move, confirmed in a statement released on Sunday, April 5, 2026, aims to bring reliable, renewable power to underserved and off-grid communities.

The funding is a key component of the Distributed Access through Renewable Energy Scale-up (DARES) Programme. It utilizes a performance-based grant framework, bolstered by a recently signed ₦100 billion Memorandum of Understanding (MoU) between the REA and Lotus Bank, highlighting the growing role of local financing in the energy sector.

Breaking Down the Disbursement

The ₦9 billion allocation is divided among key developers to ensure rapid deployment across the target regions:

• Havenhill: Received ₦7.95 billion to finance essential equipment for four major mini-grid projects spanning Taraba, Kogi, and Kwara States.

• Faraday & Otstred Limited: Allocated ₦1.056 billion for the deployment of mini-grids across three specific sites in Niger State.

These figures follow previous approvals, including ₦7.4 billion for Ventura Logistics Services and ₦3.2 billion for Zanoplus, signaling a sustained financial commitment to expanding Nigeria’s renewable energy infrastructure.

A Pattern of Growing Confidence

Managing Director of the REA, Abba Aliyu, emphasized that this disbursement is not an isolated event but part of a consistent trend. “What is particularly encouraging here is the consistency; this is not a one-off thing,” Aliyu stated. He noted that the steady flow of capital is building market confidence and providing developers with the resources needed to accelerate project timelines.

For the beneficiary communities, this means a faster transition to stable electricity, while for the broader market, it proves that local financial institutions are now stepping up to drive the renewable energy transition.

The Bigger Picture: Power Sector Reforms

This REA initiative aligns with a broader national effort to stabilize the Nigerian power sector. President Bola Tinubu recently approved a ₦3.3 trillion payment plan to settle legacy debts within the industry. To date, ₦501 billion has been raised for these payments, with ₦223 billion already disbursed to 15 power plants.

As the REA prepares to deploy an additional ₦100 billion in 2026 for hybrid mini-grid projects targeting government institutions, these regional disbursements in Taraba, Kogi, Kwara, and Niger represent a critical shift toward a more decentralized and resilient national energy mix.