Nigeria’s Solar Power Growth Surges Amid Fuel Price Hikes
Nigeria, Africa’s most populous nation, has become the continent’s fifth-largest solar installer in 2024, adding 73 megawatts (MW) of new capacity, according to a report by the Global Solar Council.
The country’s growing reliance on solar energy is largely driven by the removal of petrol subsidies, which has made solar an attractive alternative for households and businesses.
Fuel Subsidy Removal Sparks Solar Adoption
The Nigerian government scrapped petrol subsidies in May 2023, leading to a sharp rise in fuel costs. This shift has encouraged businesses and households to turn to solar energy, especially for residential and off-grid systems, which have traditionally dominated the country’s solar market.
“Despite Nigeria securing a spot among the top 10 solar PV installers with 73 MW of new capacity in 2024, this figure may be underestimated due to the significant share of non-utility solar installations, such as private and commercial rooftop systems, which are harder to track,” the report stated.
Major Solar Projects Signal a Shift in Utility-Scale Development
Nigeria has historically lagged in utility-scale solar development, but recent projects suggest a shift. The Kebbi State government has allocated 200 hectares of land to a private investor for a 5.6-gigawatt (GW) solar power plant, while the Lafia and Gombe solar parks could add up to 600 MW by 2028.
Other African countries, such as Mali, are also seeing a rise in solar adoption and could become gigawatt-scale markets within the same period.
Solar Gains Traction Amid Rising Electricity Costs
Nigeria’s rising electricity tariffs, implemented to reduce subsidies, have also pushed more consumers toward solar energy. The report highlights a trend seen in South Africa and Mauritius, where higher power costs and frequent electricity blackouts have accelerated the adoption of residential and commercial solar systems.
Off-grid solar solutions, such as home solar systems, have also gained popularity. Between 2020 and 2022, off-grid solar accounted for 55% of new electricity connections in sub-Saharan Africa, with Nigeria leading the trend.
Nigeria’s Solar Potential Remains Vastly Untapped
As of 2024, Nigeria’s total installed solar capacity stands at 385.7 MW. However, the International Renewable Energy Agency (IRENA) estimates that the country has the potential to generate up to 210 GW of solar power if just 1% of its suitable land were utilized for solar projects.
“This growing adoption of solar energy is only at its burgeoning stage,” the report noted.
The commercial and industrial (C&I) solar segment is expected to grow rapidly, with projected installations reaching between 494 MW and 1,457 MW by 2025. Under a medium-growth scenario, Nigeria could add over 550 MW of new solar capacity between 2025 and 2029.
READ ALSO: How Nigeria Climbed to 4th Place in Africa’s Solar Energy Rankings
Challenges in Scaling Utility-Scale Solar
Despite the progress, weak grid infrastructure continues to constrain large-scale solar development. Nigeria’s Green Vision initiative targets 5 GW of solar capacity by 2030 and 25 GW by 2050, but progress has been slow. Plans for 14 new solar farms across northern and central Nigeria have been delayed due to the government’s reluctance to provide essential guarantees to developers.
Government Policies and Incentives Driving Growth
Nigeria’s regulatory framework has played a crucial role in the expansion of solar energy. The National Renewable Energy and Energy Efficiency Policy (NREEEP), enacted in 2015, set ambitious renewable energy targets, aiming for solar to contribute 6% of electricity generation by 2030.
The Nigerian Electricity Regulatory Commission (NERC) has updated mini-grid regulations to accelerate electrification in rural and underserved areas. The Renewable Energy Master Plan (REMP) targets 500 MW of solar PV by 2025, with renewable electricity expected to account for 23% of generation by 2025 and 36% by 2030.
Key incentives, such as import duty exemptions, tax credits, and preferential loans for renewable energy projects, have further supported the sector’s growth.
Conclusion
Nigeria’s rise as Africa’s fifth-largest solar installer reflects a shift toward renewable energy, driven by economic reforms and rising energy costs. With increasing investments in solar power, both on-grid and off-grid, the country is poised to further expand its renewable energy capacity in the coming years. However, addressing infrastructure challenges and regulatory hurdles will be crucial to sustaining this momentum.
