The Nigerian government has approved the release of N3.2 billion to a private firm to support a 1.2 megawatts peak mini-grid electrification project aimed at underserved communities in Bauchi State.
This was made known by the Rural Electrification Agency in a statement issued over the weekend.
According to the agency, the project will see the power company deliver a total capacity exceeding 1.2 MWp across designated locations. The breakdown includes 450 kWp for Gabarin East, 400 kWp for Futuk, 200 kWp for Gangalawai, and 150 kWp for Daburai (Gabarin West).
The Federal Government explained that the project falls under its Renewable Energy Scale-up, DARES, Programme, which features a N100 billion revolving credit facility arranged with a Nigerian bank.
“The funding mechanism is rooted in a landmark Memorandum of Understanding signed in February between the REA and Lotus Bank, which established a N100 billion revolving credit facility.
“Under this framework, developers can access up to N8 billion in equipment procurement financing with tenures of 18 months,” the statement reads.
Speaking on the initiative, the Managing Director of the REA, Abba Aliyu, noted that the real measure of success for the disbursement would depend on how efficiently and transparently the process is executed.
GoNews report earlier that the Nigerian government has firm secured N7.4 billion in financing to deliver 7 megawatts of electricity to underserved communities in Ebonyi State.
