The Director General/CEO of the Energy Commission of Nigeria (ECN), Dr. Mustapha Abdullahi, has disclosed that the federal government is striving to ensure that Solar Energy is widely available and affordable to all Nigerians by the year 2025. This action shows how intently the Nigerian government takes solar energy as a means of bridging the nation’s energy gap. The government has taken various steps to increase access to solar electricity, especially for underserved and rural communities. In an interview, Dr. Abdullahi mentioned that the government is planning to build a plant that produces Solar Panels and batteries in order to provide Nigerians with access to affordable renewable power.
He added that the government has established a Renewable Energy College in order to close the gap in the power industry. Currently, the majority of the Economy is powered by Alternative Energy sources and about 50 percent of residents have little or no access to the grid. As a result, households and businesses spend about $14 billion a year on costly, and environmentally harmful generating sources. A study by the Rural Electrification Agency (REA) highlighted that creating off-grid options to supplement the national grid may open up a $9.2-billion market for solar home systems and mini-grids, saving Nigerian households and companies $4.4 billion annually.
National policies have shown the importance of solar systems.
With the support of large investments and international partnerships, the Nigerian government has been able to make great progress in developing its solar energy infrastructure. One of the most recent developments is the partnership on a joint venture agreement between Nigeria Sovereign Investment Authority (NSIA) and North South Power (NSP) in March 2024 to co-invest in Nigeria’s innovative 20 MW on-grid solar hydro hybrid project, which is a part of a larger 300 MW solar program. The novel concept integrates solar power within the concession area of the 600 MW Shiroro Hydroelectric Power Plant to improve grid dependability and energy output.
Technically, the implementation of solar power systems for homes has been proven to be an effective approach for increasing Electricity in underserved regions with low population densities. Recent national policies such as Nigeria’s National Renewable Energy and Energy Efficiency Policy (NREEP) and the Nigerian Economic Sustainability Plan (NESP), have made it apparent how important these systems are to achieving the goals of electrification and decarbonization. Under the Economic Sustainability Plan, the Solar Power Naija initiative, also encourages the use of inexpensive and dependable energy by individuals, companies, and government organizations.
REA facilitates installation of mini-grids in off-grid areas.
Additionally, the Nigeria Electrification Project (NEP) is proactively expanding underprivileged areas’ access to energy. These programs lessen Nigeria’s dependency on fossil resources while promoting energy diversification. Besides enhancing the country’s current infrastructure, Nigeria has to develop renewable energy sources in order to maintain economic growth, meet SDG7 objectives, and raise the standard of life for its people. While establishing a solar home system is expensive, there are a number of financial incentives and support systems in the country that have reduced the cost and increased accessibility.
Through the Nigeria Electrification Project, the Rural Electrification Agency provides grants and other incentives to private companies, facilitating the installation of independent solar systems and mini-grids in off-grid areas. This has resulted in considerable upfront cost savings for both consumers and enterprises, The NEP’s Solar Home System (SHS) initiative makes the renewable energy more accessible in rural and suburban regions by providing performance-based incentives to Solar Home System suppliers. Through programs like the Nigeria Off-Grid Energy Challenge, Private Sector firms like All On—supported by Shell—also promote the use of solar energy.
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Nigeria has already seen a sharp increase in the adoption of renewable energy sources, with the market for solar off-grid systems rising at an astounding average annual rate of 22% during the previous five years. According to data from Statista, Nigeria’s solar energy capacity as of 2023 was 112 megawatts, a considerable rise from 2014. Nigeria produced 50 gigawatt hours of electricity from solar power in 2023, which was unchanged from the two years before. The amount of solar energy used to produce power in the nation increased over the period under study.