Nigeria, Africa’s most populous country, has climbed to fifth place among the continent’s top solar energy adopters in 2024, with total installed capacity reaching 73 megawatts (MW), according to a recent industry analysis.
The Global Solar Council attributes this growth to the scrapping of fuel subsidies, which has accelerated the shift to solar energy in a country where off-grid and home-based solar systems have traditionally dominated the market.
In May 2023, the government removed fuel subsidies, triggering a sharp rise in petrol costs. As fuel became more expensive, businesses and households increasingly turned to solar as a cost-effective alternative.
“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.
While large-scale solar projects have been relatively rare in Nigeria, recent investments signal a possible shift. The Kebbi State government has allocated 200 hectares of land for a 5.6-gigawatt (GW) solar facility led by a private investor. Additionally, planned solar parks in Lafia and Gombe could contribute up to 600 MW by 2028. Meanwhile, Mali is also emerging as a major player, with projections indicating it could reach gigawatt-scale solar capacity within the same period.
Nigeria’s growing interest in solar energy follows a wider trend across Africa, where rising electricity costs and frequent power cuts have pushed both households and businesses to seek alternative energy sources.
“There is often a corresponding rise in residential PV installations as a solution to frequent power cuts,” the report highlighted.
Another factor driving solar adoption in Nigeria is the recent increase in electricity tariffs, as part of the government’s efforts to scale back energy subsidies. The pattern mirrors developments in countries like South Africa and Mauritius, where higher electricity rates have encouraged more consumers to switch to solar.
Stand-alone solar systems, particularly for homes, have also gained popularity.
Between 2020 and 2022, more than half of all new electricity connections in sub-Saharan Africa came from off-grid solar solutions, with Nigeria leading the transition. The rise in fuel prices, coupled with initiatives like the Nigeria Electrification Programme, has boosted demand for these systems.
As of 2024, Nigeria’s total installed solar power capacity stands at 385.7 MW. However, the International Renewable Energy Agency (IRENA) estimates that the country has barely tapped into its solar potential. If just 1 percent of Nigeria’s suitable land were used for solar farms, it could generate as much as 210 GW.
“This growing adoption of solar energy is only at its early stage,” the report stated.
The commercial and industrial (C&I) solar sector is rapidly expanding, with forecasts predicting installations could range between 494 MW and 1,457 MW by 2025. Under a moderate-growth scenario, the country could add more than 550 MW of new solar capacity between 2025 and 2029.
Despite this momentum, large-scale solar projects continue to face obstacles due to Nigeria’s weak power grid infrastructure.
The Nigeria Green Vision (30:30:30) plan aims to generate 5 GW of solar energy by 2030 and increase capacity to 25 GW by 2050. However, progress has been slow.
Government plans for 14 solar farms in central and northern Nigeria, expected to supply about 20 percent of the national grid’s capacity, have stalled. The delays stem from the authorities’ reluctance to provide developers with crucial financial guarantees.
According to the report, government policies have played a key role in shaping Nigeria’s solar industry.
The National Renewable Energy and Energy Efficiency Policy (NREEEP), introduced in 2015, set a target for solar to contribute 6 percent of the country’s electricity generation by 2030. Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) has updated regulations to promote mini-grid development and expand access to electricity in remote areas.
The Renewable Energy Master Plan (REMP) outlines a goal of 500 MW of installed solar PV capacity by 2025. By then, renewable energy is expected to account for 23 percent of total power generation, rising to 36 percent by 2030.
Various incentives, including tax reliefs, import duty waivers, and subsidised loans for renewable energy projects, have also contributed to the sector’s rapid expansion.