Renewables
Northern Nigeria targets solar expansion under new energy framework
The newly incorporated Northern Nigeria Energy Company plans a major solar rollout to address regional electricity deficits.
Key points
- Northern Nigeria accounts for a low share of national electricity distribution despite high solar potential.
- The Electricity Act 2023 empowers states to establish independent regulatory frameworks and drive renewable projects.
- Experts emphasize the need for de-risking and local currency financing to attract private investment.
Regional energy challenges
Nineteen northern states in Nigeria face severe electricity constraints, receiving a minority of the national grid supply despite housing a large share of the population. According to operational data from the sector regulator cited by Businessamlive, distribution companies operating across the northern region received approximately 2,584 gigawatt-hours in the second quarter of 2026. This limited allocation translates to low per capita consumption compared to other developing regions, constraining agricultural processing and industrial growth.
Energy professionals note that the shortfall stems largely from structural market challenges and grid vulnerabilities rather than a lack of natural resources. Daily sunshine levels across the northern belt frequently reach between 5.5 and 6.5 equivalent hours, offering high potential for photovoltaic power generation. However, reliance on expensive diesel generation for commercial and domestic needs continues to drive up operational expenses for businesses.
Subnational autonomy and solar investment
Recent legislative reforms have altered the investment landscape. According to Daily Trust and THISDAYLIVE reporting from the 43rd National Solar Energy Forum in Abuja, stakeholders highlighted the impact of the Electricity Act 2023. The law permits subnational authorities to oversee electricity generation and distribution, resulting in sixteen states establishing independent regulatory bodies.
Sam Onuigbo, president of the Global Legislators Organisation for Better Environment, noted during the conference that federal support for programmes like the World Bank-backed Distributed Access through Renewable Energy Scale-up initiative is expanding decentralized clean power. Furthermore, the Northern Governors Forum has formed the Northern Nigeria Energy Company to pursue a pipeline consisting of 1,000 megawatts of solar capacity and 500 megawatts of battery storage, with backing from the United States Export-Import Bank.
Why it matters
Expanding utility-scale solar is critical for bridging infrastructural divides in Nigeria, where electricity access stood at 62.5 percent in 2024, according to World Bank figures. With per capita electricity consumption at 140.6 kWh in 2024—well below the global average of 3,708.5 kWh—decentralised renewable energy offers a viable pathway to industrialisation. Analysts emphasize that successful project execution will require robust risk mitigation, standardising Power Purchase Agreements, and leveraging domestic pension funds to avoid severe foreign exchange exposure.
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.
