Nigeria Faces Energy Crisis as Solar Projects Struggle to Meet Growing Demand

  • Nigeria is facing a critical energy challenge, with over 220 million people and millions lacking reliable electricity despite efforts to expand solar power projects.
  • The World Bank has approved a $750 million program to improve electricity access for 17.5 million Nigerians through microgrids and solar home systems.

In sun-drenched Nigeria, the promise of 14 new solar farms was hailed as a potential game-changer for the country’s struggling solar industry, capable of generating a significant amount of power, roughly one-fifth of the country’s total electricity grid capacity. When the project began, Najim Animashaun, managing director of Nova Solar Power, reflected on the excitement of being a pioneer in 2016.

With over 220 million people, Nigeria has the highest number of people living without electricity, which has worsened in the past decade. Even those connected to the grid face frequent outages. Millions rely on wood for cooking and diesel generators for irregular power supply.

At climate talks in Baku, pledges were made to allocate at least $300 billion annually to help developing nations like Nigeria transition from fossil fuels and address the impacts of climate change. However, many developing countries, including Nigeria, consider this amount insufficient.

Nigeria faces an enormous challenge in its energy transition. As a major oil exporter, the country’s government relies heavily on oil revenue, using natural gas for much of its electricity. At the same time, Nigeria is attempting to grow its economy and reduce poverty while aiming for net-zero emissions by 2060. This ambitious goal requires a massive increase in renewable energy projects, including solar and hydropower.

Sun King, a leading provider of micro-solar devices, is capitalising on this need, offering affordable solar solutions to replace expensive and harmful kerosene lamps and diesel generators. The micro-solar industry is also generating jobs for Nigeria’s youthful population. Olamide Ayo-Ogunlade, HR lead for West and Central Africa at Sun King, noted the company has grown from 19 stores to 90 in four years, employing more than 8,000 “energy officers” who sell, install, and service solar products.

Many of these energy officers start as customers who discover the benefits of solar products and are then trained to become entrepreneurs. They visit markets, churches, and mosques to make sales, supported by in-person and online training.

However, the industry faces challenges with quality control. Siré Diallo, an energy and climate finance expert at the UN Development Programme, pointed out that some solar installations have been unsatisfactory due to poor quality equipment or subpar installations. Though improvements are being made, more training programs are needed to ensure long-term success.

Akin Olukiran, CEO of ABG-CAPS Clean Energy Generation, which installs solar systems for businesses, highlighted the high demand for solar jobs, receiving up to 20 unsolicited job applications daily. However, the opportunities remain limited despite the potential of many applicants.

A potential solution can be seen in a planned solar-powered minigrid at the largest market in Nigeria’s capital, Abuja. The project, which pairs solar panels with batteries, will provide reliable electricity to the market, reducing the reliance on noisy, polluting diesel generators during power outages. Alberto Rodríguez Gómez, manager of the Africa energy program at the Rocky Mountain Institute, emphasised that solar solutions could significantly improve air quality and working conditions.

The World Bank approved a $750 million program to support further this transition to enhance electricity access for 17.5 million Nigerians through microgrids and solar home systems. However, experts agree that much more is needed to meet the country’s energy needs.

As Nigeria’s energy challenges continue to grow, Animashaun believes the country is at a critical turning point. With rising living costs and increasing pressure on the government to provide reliable power, he warns that failure to act could lead to social unrest. “If you want to avoid social unrest, you must do something,” he said.

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