REA Disburses $2.5 Million to Zanoplus for Bauchi Mini-Grid Deployment

The Rural Electrification Agency has disbursed approximately $2.5 million (₦3.2 billion) to Zanoplus for the deployment of solar mini-grid projects across Bauchi State, as part of Nigeria’s push to scale decentralised energy access.

The funding supports the rollout of approximately 1.2 MWp of distributed solar capacity across multiple communities, including Gabarin East, Futuk, Gangalawai, and Daburai. The systems will operate as standalone mini-grids, providing electricity directly to underserved and unserved populations outside the national grid.

The disbursement is structured under the Distributed Access through Renewable Energy Scale-up (DARES) programme, a government-led initiative designed to catalyse private sector participation in Nigeria’s off-grid market. The programme combines performance-based grants with local debt financing, enabling developers to access capital tied to verified delivery milestones.

On the financing side, the structure is backed by a $65–70 million (₦100 billion) revolving credit facility established between the REA and Lotus Bank. Under this framework, developers can access short-tenor equipment financing, with local banks providing up to 90% of project funding alongside results-based support mechanisms.

The Zanoplus deployment follows a similar disbursement to another developer under the same programme, signalling increased momentum in Nigeria’s mini-grid financing landscape. The model reflects a broader shift toward leveraging domestic financial institutions to fund distributed energy infrastructure, reducing reliance on international development finance for smaller-scale projects.

With systems designed as integrated generation and distribution networks, the projects are expected to deliver reliable power to remote communities, supporting productive use and local economic activity. More broadly, the transaction highlights the growing role of performance-linked financing structures in unlocking capital for off-grid solar deployment in West Africa.