In a development highlighting Nigeria’s rising influence in Africa’s clean-energy landscape, local renewable energy firms have begun exporting infrastructure and expertise to African countries like Liberia and Sierra Leone.
Abba Aliyu, Managing Director of the Rural Electrification Agency (REA), explained that the country has “mastered” building renewable projects, developing technical talent, and attracting private financing across West Africa.
At the heart of this development is the REA’s ambitious drive to provide electricity access to 25 million Nigerians within three years, especially in rural and semi-urban areas. Already, Aliyu reports the commissioning of 70 projects and over 42 interconnected mini-grids that will integrate with the national grid.
Deals have been signed with eight firms covering over 200 sites, with plans to close agreements with 100 more companies for 500 additional mini-grids. The vision is bold: deliver over 1,350 mini-grids, transforming the energy map of Nigeria and beyond.
This surge in renewable energy projects aims to solve one of Nigeria’s most stubborn problems: the lack of electricity in rural areas. Millions of people in villages and small towns still live without steady power and rely on unhealthy alternatives like diesel generators or run small businesses.
The electrification drive is also designed to provide affordable electricity by giving grants to private companies to cover the steep cost of building power projects. This way, the price customers pay stays low enough for them to afford.
The numbers reveal the scale of the challenge and the opportunity. As of 2021, World Bank reported that Nigeria’s electrification rate hovered around 55%, leaving roughly 85 million Nigerians without reliable power. Rural access rates were even lower, around 30%.
Meanwhile, Nigeria has an installed electricity capacity exceeding 13,000 megawatts but often produces 5,500 megawatts due to transmission and distribution bottlenecks. The REA’s renewable efforts have already catalysed over 600 megawatts of new capacity, with an additional 2.5 gigawatts in the pipeline, signalling significant progress.
This means that Nigeria has already built new solar and renewable energy projects that can produce 600 megawatts of electricity, which is enough to power hundreds of thousands of homes and businesses. Even more exciting, there are bigger projects on the way that could produce 2,500 megawatts (or 2.5 gigawatts) of clean energy in the near future.
Nigeria’s current strategy contrasts sharply with past electrification attempts, many of which faltered due to centralised planning, heavy bureaucracy, and a lack of sustainable funding. Decades of state-led grid expansion often produced incomplete projects or systems that collapsed under the weight of poor maintenance and unpaid debts.
However, recent successes, such as the Energising Economies Initiative, which electrified major markets and economic clusters, and the solar hybrid systems installed at Nigerian universities, demonstrate that decentralised solutions can deliver real results.
The lesson appears clear: engaging private capital and local expertise yields far greater impact than purely government-run projects of the past.
Across Africa, several countries are emerging as leaders in renewable energy and green innovation. At over 1.65 gigawatts, Egypt’s Benban Solar Park stands out as one of the world’s largest solar installations, weaning the country from fossil fuels.
Morocco has become a pioneer in solar thermal technology with its Noor Ouarzazate complex, supplying hundreds of megawatts and contributing to the nation’s goal of sourcing over 52% of its electricity from renewables by 2030.
Similarly, South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has added more than 6 gigawatts of clean power, attracting significant private investment and transforming its energy mix.
Meanwhile, countries like Kenya and Ghana have made impressive strides as well: Kenya through its vast geothermal resources and the Lake Turkana Wind Power project, and Ghana with solar ventures like the Nzema plant. These nations have demonstrated how focused policies and large-scale projects can rapidly boost renewable capacity.
Rather than rely solely on giant centralised power plants, Nigeria is pursuing a hybrid model that leverages decentralised mini-grids and solar systems to bring power to communities left outside the grid. Through the REA’s innovative approach, Nigeria is engaging private companies, securing local and international financing, and building technical skills at home.
The REA has secured ₦100 billion in project development financing from FCMB. Discussions are underway with Fidelity Bank. Meanwhile, the International Finance Corporation has injected $20 million into four Nigerian developers. This blend of local banking support and global finance is accelerating project timelines that used to stall for years.
The stakes are high. Nigeria faces an electricity access gap estimated to cost $25 billion to bridge. Meanwhile, the country’s youth population is booming, and job creation is urgent.
The renewable energy sector is not just providing power but generating a skilled workforce, birthing an ecosystem of Renewable Energy Service Companies (Rescos) capable of designing, building, and managing sophisticated power infrastructure. Today, Nigerian firms are executing projects abroad, a remarkable export of homegrown expertise and technology.
Beyond simply lighting homes, this renewable revolution could cement Nigeria’s status as the energy hub of Africa. It promises economic diversification, new green jobs, and reduced carbon emissions in line with global climate goals. Yet challenges remain: policy consistency, security concerns in rural areas, and ensuring tariffs remain truly affordable for low-income communities.
Further, the implications of this new development are profound for Nigeria’s economy and society. Boosting renewable capacity helps close the huge gap between electricity demand and actual supply, reducing the need for costly and polluting diesel generators used by businesses and households.
Reliable power can lower production costs for industries, attract new investments, and create jobs, especially in rural areas where economic activity has been stifled by lack of electricity.
Also, increasing renewable energy helps Nigeria transition toward cleaner energy sources, cutting greenhouse gas emissions and supporting the country’s climate commitments. With 600 megawatts already added and 2.5 gigawatts in the pipeline, Nigeria is on track to significantly increase its share of sustainable energy in the national mix.
Expanding rural electrification improves quality of life by powering healthcare facilities, schools, and small businesses, unlocking economic opportunities for millions of people. It also signals a shift from heavy reliance on government-funded grid expansion to a more sustainable, private-sector-driven model, which can strengthen the country’s position as a renewable energy leader across West Africa.
Nigeria is emerging as a leader in Africa's renewable energy landscape, exporting clean energy infrastructure and expertise to countries like Liberia and Sierra Leone. Under the guidance of the Rural Electrification Agency (REA), Nigeria has mastered the development of renewable projects, attracted private financing, and is addressing electricity access for 25 million Nigerians through initiatives that have already commissioned 70 projects. This includes over 42 mini-grids interconnected with the national grid, with plans for more through partnerships with local and international financing bodies.
The nation faces significant challenges in closing its electricity access gap, with an estimated cost of $25 billion. Nevertheless, Nigeria's current strategy leverages decentralised mini-grids and solar systems to provide efficient power, contrasting past state-led efforts that were plagued by inefficiencies. Through private sector engagement, Nigeria has already added 600 megawatts of new capacity and aims for a further 2.5 gigawatts.
By enhancing renewable energy capacity, Nigeria is expected to reduce dependence on polluting diesel generators, lower industry production costs, create jobs, and support rural economic development. The focus on sustainable and de-centralized power solutions is propelling Nigeria towards becoming a renewable hub in West Africa, contributing to economic diversification, reducing emissions, and aligning with global climate goals. However, the country still faces challenges in policy consistency and ensuring affordable electricity tariffs for low-income communities.
