Nationwide blackout: ₦9bn released for mini-grids as power crisis deepens

The Rural Electrification Agency (REA) has recently handed out around ₦9 billion to help bring solar mini-grid projects to life in Taraba, Kogi, Kwara, and Niger States.

This news came out in a statement the agency shared on Sunday.

The REA also mentioned that this money is made possible by a special grant system under their Distributed Access through Renewable Energy Scale-up Programme. This system got a boost from a new deal worth ₦100 billion that they just signed with Lotus Bank.

The agency went on to say that these projects are spread out across several states, with mini-grids being set up in Taraba, Kogi, and Kwara, plus more locations in Niger State. The goal is to make electricity more available to communities that don't have easy access to it right now.

Talking about this progress, Abba Aliyu, who is the Managing Director of REA, shared that the continuous flow of funds shows that people are increasingly confident about Nigeria’s renewable energy sector.

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“What is particularly encouraging here is the consistency; this is not a one-off thing; it is a pattern of capital being deployed, projects moving forward, and confidence in the system continuing to grow,” he said.

He further noted that the funding would ease access to critical resources for developers while accelerating electricity delivery to communities.

“For developers, this means access to the equipment and financing needed to deliver. For communities, it means faster timelines for reliable power. And for the market, it reinforces the point that local financing is stepping up in a significant way,” Aliyu added.

A look at how the funds were distributed shows that Havenhill received ₦7.95 billion. This money was given to pay for important equipment needed for four mini-grid projects spread across Taraba, Kogi, and Kwara states.

Also, ₦1.056 billion was given out to Faraday & Otstred Limited. They will use these funds for mini-grid setups at three different locations in Niger State.

The agency also brought up some earlier financing decisions. They mentioned approving ₦7.4 billion for Ventura Logistics Services and ₦3.2 billion for Zanoplus. This highlights that there's a continuous commitment to investing in renewable energy infrastructure.

READ ALSO: Nationwide blackout: Federal Government says Nigeria needs $100 billion to solve power crisis

The latest disbursement comes just after President Bola Tinubu gave the green light to a plan spending ₦3.3 trillion to clear old debts in Nigeria's electricity sector. This is all part of the Presidential Power Sector Financial Reforms Programme.

Under this plan, a total of ₦3.3 trillion has been set aside to settle all confirmed legacy debts completely. So far, around 15 power plants have signed agreements worth ₦2.3 trillion as part of this deal.

The Federal Government has raised ₦501 billion to fund these settlements, and it has already disbursed ₦223 billion. More payments are still happening.

This latest distribution from the Rural Electrification Agency (REA) is seen as one piece of a larger effort to get Nigeria's power supply less reliant on the main national grid. It also fits with the agency's own plan to spend ₦100 billion in 2026 on hybrid mini-grid projects aimed at government buildings both inside and outside Abuja.