Renewables
Experts stress bankable projects for Nigeria's solar market
Industry leaders warn that inadequate preparation and substandard equipment could hinder Nigeria's expanding solar energy sector.
Key points
- Nigeria's operational solar capacity reaches approximately 620 megawatts.
- Commercial and industrial solar installations grow by 32 per cent annually.
- Experts urge developers to prioritise commercial viability and local technical support.
Industry operators and sector experts have cautioned that sustaining Nigeria's expanding solar market depends heavily on thorough project preparation, reliable equipment, and robust local technical support, the Nigerian Tribune reported. Speaking ahead of the Renewable Energy Forum Africa 2026 in Lagos, representatives warned that inadequate structuring could undermine investor confidence.
Benjamin Clark, Director of Operations at the Africa Solar Industry Association, stated that Nigeria hosts approximately 620 megawatts of operational solar capacity, maintaining its position as the largest market in West Africa. Annual installations climbed from roughly 15 megawatts in 2019 to about 123 megawatts in 2024, with additions potentially exceeding 200 megawatts in 2026.
The commercial and industrial segment has driven much of this activity, growing by an average of 32 per cent annually since 2021. Businesses increasingly deploy solar to offset high fuel costs and unreliable grid supplies. Diesel spot prices recorded by the US Energy Information Administration stood at 4.767 US dollars per gallon on the US Gulf Coast in late October 2026, underlining the economic appeal of switching to renewables.
Industry stakeholders, including representatives from Jinko Solar, JA Solar, AIKO Energy, AlphaESS, and the Africa Mini-grid Developers Association, noted that securing long-term capital requires projects to prove clear economic returns. Ololade Raji of AlphaESS stressed the necessity of credible feasibility studies and local service centres to prevent the country from becoming a receptacle for substandard technology.
Regulatory developments, such as the introduction of net-billing rules allowing businesses to export excess power and expanded capacity thresholds for mini-grids, provide a supportive framework alongside substantial financing initiatives like the 300 million US dollar Distributed Renewable Energy Fund.
Why it matters
The emphasis on bankable projects highlights a critical maturation phase for Nigeria's power sector. According to World Bank data, Nigeria's electricity access reached 62.5 per cent of the population in 2024, falling well short of the global average of 91.9 per cent. Furthermore, national electricity use per person stood at just 140.6 kilowatt-hours, compared to a global average of 3,708.5 kilowatt-hours. For investors, regulators, and policymakers, transitioning from basic capacity deployment to commercially viable, locally supported solar infrastructure is essential to overcoming persistent energy deficits and driving broader economic productivity.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
22.0% of electricity in Nigeria was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
