The Rural Electrification Agency has said it disbursed N3.2bn to Zanoplus for the deployment of solar mini-grid projects in Bauchi State.

The agency disclosed this in a statement on Sunday, noting that the fund was targeted at accelerating electricity access in unserved and underserved communities through decentralised energy solutions.

According to the REA, the disbursement is part of ongoing efforts under the Distributed Access through Renewable Energy Scale-up Programme.

“The Rural Electrification Agency has achieved another significant milestone in its mission to close the energy gap in unserved and underserved communities with the successful disbursement of N3.2bn to Zanoplus,” the statement said.

It added that the capital injection is earmarked for the “rapid deployment of solar mini-grid projects across strategic locations in Bauchi State, marking a robust continuation of the agency’s commitment to decentralised energy solutions.”

The agency said the development followed a recent N7.4bn disbursement to Ventura Logistics Services for a 7MW mini-grid project in Ebonyi State.

“This latest financial milestone follows closely on the heels of a N7.4bn disbursement to Ventura Logistics Services for a 7MW mini-grid initiative,” it stated.

REA explained that both projects were being implemented under the DARES Programme, designed to drive private sector participation through local financing structures.

It further disclosed that the funding structure was backed by a financing agreement with Lotus Bank.

“Both interventions are executed under the Distributed Access through Renewable Energy Scale-up Programme, a transformative partnership designed to catalyse private sector participation through the support of indigenous financial institutions,” the statement noted, adding that “the funding mechanism is rooted in a landmark Memorandum of Understanding signed in February between the REA and Lotus Bank, which established a N100bn revolving credit facility.”

Under the arrangement, developers are able to access up to N8bn in equipment procurement financing with tenures of 18 months, alongside Lotus Bank providing up to 90 per cent counterpart funding for projects approved through result-based financing.

The REA noted that the mini-grid deployment by Zanoplus would deliver over 1.2MWp of electricity across several communities in Bauchi State, transforming the socio-economic landscape of the state.

Providing a breakdown, the agency said, “Specific allocations include 450kWp for Gabarin East, 400kWp for Futuk, 200kWp for Gangalawai, and 150kWp for Daburai (Gabarin West).”

It explained that the systems would function independently of the national grid to supply reliable power to remote areas.

“These systems operate as integrated local generation and distribution networks with capacities below 1MW, functioning independently of the national grid to provide reliable, clean energy directly to numerous end-users in isolated regions,” the statement added.

Commenting on the programme, the Managing Director of the REA, Abba Aliyu, stressed the importance of efficiency and transparency in the disbursement process.

He noted that the speed and transparency of execution demonstrate the vibrancy of the local financing capacity currently being catalysed by the REA.

Aliyu added that “this momentum proves that a performance-based financing framework can effectively direct capital toward projects that are credible, ready for implementation, and strictly aligned with delivery milestones.”

He further said the steady flow of investment reflected growing confidence in Nigeria’s renewable energy market.

The managing director further highlighted that the consistent flow of capital sends a powerful signal to the global and local investment community that the Nigerian renewable energy market is active and the underlying structures are working.

He also commended local financial institutions for their increasing role in driving energy infrastructure. He lauded the proactive role of Nigerian financial institutions, which he said are increasingly transitioning from mere participants to primary drivers of renewable energy infrastructure.