Fresh funding signals growing investor confidence in Nigeria’s renewable energy push as off-grid electrification gains momentum……
Nigeria is ramping up efforts to close its electricity access gap, with the Rural Electrification Agency (REA) disbursing nearly N9 billion to support solar mini-grid projects across four states.
In a statement released on Sunday, the agency confirmed that the funding will drive deployments in Taraba, Kogi, Kwara, and Niger states, targeting underserved communities that remain outside the reach of the national grid.
The financing is part of REA’s Distributed Access through Renewable Energy Scale-up Programme, structured under a performance-based grant framework. The initiative is further backed by a recently signed N100 billion Memorandum of Understanding with Lotus Bank, aimed at unlocking long-term funding for clean energy infrastructure.
According to the agency, the projects will deliver decentralized power solutions to multiple locations, with mini-grid installations planned across Taraba, Kogi, and Kwara, alongside additional deployment sites in Niger State.
The goal is straightforward: expand reliable electricity access in areas where grid connectivity remains limited or non-existent.
‘Not a one-off’ REA signals sustained momentum
REA’s Managing Director, Abba Aliyu, described the disbursement as part of a broader, sustained investment trend rather than an isolated intervention.
“What we are seeing is consistency, capital is being deployed, projects are progressing, and confidence in the system continues to build,” he said.
Aliyu noted that the funding will ease financing constraints for developers while accelerating project timelines for host communities.
For developers, he explained, the support translates into improved access to equipment and capital. For communities, it means faster delivery of reliable electricity. And for the broader market, it signals that local financing is beginning to play a more prominent role in Nigeria’s renewable energy sector.
Where the money is going
A breakdown of the disbursement shows:
- 95 billion allocated to Havenhill to fund equipment for four mini-grid projects across Taraba, Kogi, and Kwara
- 056 billion disbursed to Faraday & Otstred Limited for three project sites in Niger State
The REA also pointed to earlier funding rounds, including:
- 4 billion for Ventura Logistics Services
- 2 billion for Zanoplus
Together, these investments highlight a steady pipeline of financing aimed at scaling renewable energy infrastructure nationwide.
Part of a broader power sector reset
The latest funding push comes amid wider reforms in Nigeria’s power sector. Recently, President Bola Tinubu approved a N3.3 trillion plan to settle longstanding debts owed to power generation companies under a financial reform programme.
So far, about N2.3 trillion worth of agreements have been signed with multiple power plants, with hundreds of billions already disbursed as part of the settlement process.
Shifting beyond the national grid
As Nigeria continues to grapple with persistent electricity shortages, mini-grids and other decentralized solutions are becoming increasingly central to the country’s energy strategy.
The REA’s latest disbursement aligns with its broader ambition to scale hybrid and renewable power systems, including plans to deploy N100 billion in 2026 for mini-grid projects targeting public institutions both within and outside Abuja.
For millions of Nigerians living in off-grid communities, these projects could mark a turning point bringing not just electricity, but also new opportunities for economic growth and improved quality of life.
