Victor EzejaNigeria’s power crisis is a multifaceted issue and has persisted for decades, affecting economic growth and leaving millions without access to reliable electricity.
With an estimated 40 per cent of the population lacking access to the national grid, according to the National Bureau of Statistics (NBS), and frequent blackouts even for those connected, the need for a sustainable solution is urgent.
Join our WhatsApp ChannelExperts believe that renewable energy sources, which include solar, wind, hydropower, and biomass, offer a promising alternative to Nigeria’s reliance on fossil fuels and ageing infrastructure. However, while renewable energy can play a transformative role, it is not a standalone solution. Resolving Nigeria’s power crisis will require a combination of renewable energy deployment, infrastructure upgrades, policy reforms, and investment.
The Power Crisis in Context
Nigeria’s power sector faces several critical challenges:
Low Generation Capacity: Despite having an installed capacity of around 13,000 MW, only about 4,000–5,000 MW is operational due to inefficiencies and gas supply issues.
Ageing Infrastructure: Transmission and distribution networks are outdated, leading to significant energy losses.
Over-Reliance on Fossil Fuels: Gas-fired power plants account for over 80% of Nigeria’s electricity generation, making the sector vulnerable to gas shortages and price volatility.
Nigeria suffered national grid collapse for not less than 12 times in 2024 and the grid has collapsed about two times this year.
Over 90 million Nigerians lack access to electricity, particularly in rural areas, reflecting the level of energy poverty in the country.
The Potential of Renewable Energy
With its potentials, renewable energy is believed to offer a viable pathway to addressing many of these challenges.
Decentralised Energy Solutions: Renewable energy, particularly solar, can provide off-grid and mini-grid solutions to rural and underserved areas. This reduces the need for extensive grid infrastructure and can rapidly expand energy access.
Abundant Natural Resources
With its natural resource endowment, Nigeria is said to have immense renewable energy potential.
For solar, experts estimate that with an average of 5–7 kWh/m²/day of solar irradiation, solar energy could be a game-changer, in many parts of the country.
Hydropower: Nigeria already generates a significant portion of its electricity from hydropower (e.g., Kainji and Jebba dams), and there is potential for further expansion.
Wind: Northern states like Katsina and Sokoto have favorable wind conditions for energy generation.
Biomass: Agricultural waste and other biomass resources can be harnessed for energy production.
Environmental and Economic Benefits
Transitioning to renewable energy can reduce Nigeria’s carbon emissions, improve air quality, and create jobs in manufacturing, installation, and maintenance.
Diversifying the energy mix with renewables reduces dependence on fossil fuels and mitigates the risks associated with gas supply disruptions.
Challenges to Renewable Energy Adoption
Despite its potential, renewable energy faces several barriers in Nigeria:
Financing: High upfront costs for renewable energy projects require significant investment, which can be a challenge in a resource-constrained economy.
Infrastructure Deficits: Inadequate grid infrastructure and lack of energy storage systems hinder the integration of renewable energy into the national grid.
Policy and Regulatory Gaps: Inconsistent implementation of policies and regulatory frameworks can slow progress.
Technical Expertise: A shortage of skilled professionals in renewable energy technologies limits the sector’s growth.
Public Awareness: Limited understanding of renewable energy benefits among policymakers and the public can hinder adoption.
Progress in Renewable Energy Development
Nigeria has taken significant steps toward harnessing renewable energy:
The Nigeria Electrification Project (NEP) aims to provide off-grid solar power to millions of households and businesses.
The Solar Power Naija Initiative seeks to electrify five million households using solar energy.
The Katsina Wind Farm (10 MW) is one of the first large-scale wind projects in the country.
Policies like the National Renewable Energy and Energy Efficiency Policy (NREEEP) and the Electricity Act 2023 provide a framework for renewable energy development and private sector participation.
One of the key aspects of the Act is that it encourages the development and use of renewable energy sources. It sees renewable energy as a critical component of Nigeria’s energy mix.
As of 2024, Nigeria’s cumulative installed solar capacity reached 385.7 MW.
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A recent report by Global Solar Council reveals that Nigeria emerged as the fifth-largest solar installer in Africa in 2024, with a total new installed capacity of 73 megawatts (MW).
According to the report, this growth was as a result of the removal of petrol subsidies, which has spurred the adoption of solar in the country. In May 2023, the federal government removed petrol subsidies, which caused petrol prices to skyrocket and made solar energy a more attractive choice for households and companies.
However, the International Renewable Energy Agency (IRENA) estimates that Nigeria’s solar potential remains largely untapped, with the country capable of generating up to 210 GW if just 1 percent of its suitable land were used for solar projects.
More Investments in Renewable Projects
Being the giant of Africa, Nigeria is pushing to become the continent’s clean energy hub. As part of the drive to actualise this quest, the country plans to invest $2.7 billion in renewable energy initiatives, including the founding of Africa’s first university dedicated to renewable energy.
The Nigeria’s Rural Electrification Agency (REA) on Monday, 10 March 2025, signed a collaborative agreement with some Renewable Energy Service Companies (RESCOs) for the implementation of renewable energy projects across the country. The RESCOs include Oando, Ashipa Electric, De-Janees, Concepts, Fox Power, MBH Power, Okra Solar PTY, Sosal Renewable Energy, and Welight Nigeria among others.
REA Managing Director, Abba Aliyu, disclosed that the agency has gotten approval for the establishment of a Renewable Asset Management Company, which will oversee nearly $500 million worth of energy infrastructure deployed in Nigerian universities. The company is expected to use its assets to raise over N1 trillion, assuring long-term viability in electrification projects even in the absence of external loans or grants.
The REA Managing Director stated that the deployment of 40 interconnected mini-grids under the Distributed Access through Renewable Energy Scale-up (DARES) project marked the start of the implementation of the majority of the renewable projects. He emphasised that the projects would be the basis for expanding future interventions and guaranteeing sustainable energy access throughout the nation.
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According to Aliyu, the 40 interconnected mini-grids will generate 21.15 megawatts (MW) of electricity, which would be a major turning point for Nigeria’s renewable energy industry.
He said that while President Bola Tinubu authorised N100 billion for the National Public Sector Solarisation Initiative, $750 million had already been allotted to the DARES project. By switching public institutions from costly diesel-powered electricity to solar energy, the programme seeks to lower the cost of governance in the institutions.
He also revealed that talks with the Japan International Cooperation Agency (JICA) to obtain a further $200 million in co-finance were progressing, bringing the total amount of DARES investment to $950 million.
Can Renewable Energy Resolve the Crisis?
Renewable energy alone cannot fully resolve Nigeria’s power crisis, but it is a critical component of the solution. To maximise its impact, Nigeria must:
Invest in Infrastructure: Upgrade transmission and distribution networks and develop energy storage systems to support renewable energy integration.
Mobilise Funding: Attract domestic and international investment through favorable policies, incentives, and public-private partnerships.
Strengthen Policy Frameworks: Ensure consistent implementation of renewable energy policies and create a stable regulatory environment.
Build Local Capacity: Train professionals and develop local expertise in renewable energy technologies.
Promote Decentralised Solutions: Expand off-grid and mini-grid systems to reach rural and underserved areas.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
