- Nigeria’s solar capacity reaches 73 MW in 2024 which is driven by petrol subsidy removal and rising energy costs ranking 5th in Africa.
- Utility-scale solar faces grid challenges, but policy support and off-grid adoption fuels growth.
Nigeria, the most populous nation in Africa, has become the continent’s fifth-largest solar installer in 2024, with a total installed capacity of 73 megawatts (MW), according to a new industry report.
The Global Solar Council attributes this growth to the removal of petrol subsidies, which has driven demand for solar energy in a country where residential and off-grid systems dominate. The federal government scrapped petrol subsidies in May 2023, increasing fuel prices and making solar a more attractive alternative for businesses and households.
Although Nigeria has traditionally seen low utility-scale solar development, recent projects signal a shift. The Kebbi state government has allocated 200 hectares for a 5.6-gigawatt (GW) solar power plant, while the Lafia and Gombe solar parks could add up to 600 MW by 2028.
Across Africa, rising power prices and frequent blackouts have encouraged residential and commercial solar adoption. “There is often a corresponding rise in residential PV installations as a solution to frequent electricity blackouts,” the report noted.
Off-grid solar solutions like home systems are increasingly crucial in electrification. Between 2020 and 2022, off-grid solar accounted for 55 per cent of new electricity connections in sub-Saharan Africa, with Nigeria leading the trend. Higher fuel costs and initiatives such as the Nigeria Electrification Programme have boosted sales of solar systems.
The commercial and industrial (C&I) solar segment is also expanding. Installations could reach between 494 MW and 1,457 MW by 2025, with projections suggesting over 550 MW of new capacity between 2025 and 2029.
Despite growing adoption, utility-scale solar projects in Nigeria face challenges due to weak grid infrastructure. The government’s 30:30:30 initiative aims for 5 GW of solar by 2030 and 25 GW by 2050, but progress has been slow. Plans for 14 new solar farms, expected to generate about 20 per cent of Nigeria’s grid capacity, have stalled due to a lack of government guarantees for developers.
Nigeria’s policy framework has played a key role in supporting solar growth. The National Renewable Energy and Energy Efficiency Policy (NREEEP), enacted in 2015, targets solar to contribute 6 per cent of electricity generation by 2030. The Nigerian Electricity Regulatory Commission (NERC) has also updated its mini-grid regulations to expand electrification in rural areas.
The Renewable Energy Master Plan (REMP) aims for 500 MW of solar PV by 2025, with renewables expected to contribute 23 per cent of total electricity generation by then and 36 per cent by 2030. Incentives, including import duty exemptions, tax credits, and preferential loans, have further supported the sector.
Nigeria’s cumulative installed solar capacity has now reached 385.7 MW. However, the International Renewable Energy Agency (IRENA) estimates Nigeria could generate up to 210 GW if just 1% of its suitable land were used for solar projects.
“This growing adoption of solar energy is only at its burgeoning stage,” the report stated.