Nigeria disburses N3.2bn for 1.2MW Bauchi mini-grid

The Nigerian government has disbursed 3.2 billion naira to a power firm for the development of a 1.2-megawatt peak (MWp) mini-grid system to electrify underserved communities in Bauchi State, according to the Rural Electrification Agency (REA).

The funding, provided through the Renewable Energy Scale-up (DARES) Program, will support the installation of solar mini-grids with a combined capacity exceeding 1.2 MWp across four specific locations. The allocations include 450 kWp for Gabarin East, 400 kWp for Futuk, 200 kWp for Gangalawai, and 150 kWp for Daburai (Gabarin West).

This initiative is executed under a 100 billion naira revolving credit facility established between the REA and Lotus Bank in February. The mechanism allows renewable energy developers to access up to 8 billion naira for equipment procurement, with financing tenures of 18 months.

REA Managing Director Abba Aliyu highlighted that the success of such disbursements depends on the efficiency and integrity of the implementation process, ensuring funds translate into reliable power for targeted communities.

The DARES Program represents a significant policy shift toward using structured credit lines to catalyze private-sector investment in decentralized renewable energy solutions for Nigeria’s rural and peri-urban areas.

Separately, the government has also secured 7.4 billion naira to fund 7 MWp of mini-grid electrification in Ebonyi State, indicating a scaled-up commitment to leveraging mini-grids for nationwide energy access. These efforts align with national targets to expand electrification through renewable-powered off-grid systems, particularly in regions with low grid connectivity.