Nigeria’s crumbling national grid and recurring power outages are intensifying the country’s pivot toward renewable energy solutions, with regulatory efforts by the Nigerian Electricity Regulatory Commission (NERC) and increased investments driving change across rural and underserved communities.
Since its privatisation in 2013, the national grid has suffered a staggering 140 collapses, including seven in 2024 alone, with two major disturbances already in 2025. Technical faults, poor planning, gas shortages, and chronic underfunding have left over 80 million Nigerians without reliable electricity.
Experts say the problems are compounded by “a non-cost-reflective tariff structure, high debt levels, energy theft, and managerial weaknesses,” making investment in the sector unattractive.
As traditional power falters, distributed and renewable energy solutions are taking center stage. NERC, under the Electricity Act 2023, has ramped up support for mini-grids, embedded generation, solar home systems, and other decentralized projects.
“The NERC has implemented several regulatory measures that have significantly enhanced the Rural Electrification Agency’s adoption of renewable energy in Nigeria,” said Abba Aliyu, Managing Director of the Rural Electrification Agency (REA).
Among the Commission’s key actions is the increase in the mini-grid licensing threshold from 1MW to 5MW, making it easier for private players to build larger projects without facing red tape.
As a result, between 2019 and 2023, NERC approved 286 mini-grid projects totaling 36.8MW, while an additional 30 embedded and captive renewable energy projects were licensed between 2021 and 2024.
In total, the REA says its clean energy rollout has reached over 7.5 million Nigerians, including 300,000 women-led MSMEs, thanks to supportive policies.
“We’ve also stimulated economic growth by empowering numerous MSMEs… and contributed to environmental sustainability by integrating renewable energy solutions into the national grid,” Aliyu added.
To meet its goal of 30% renewable energy generation by 2030, Nigeria is banking on partnerships and foreign investment. Recent highlights include:
A €9.3bn EU-GIZ solar mini-grid initiative
A $500m renewable energy fund led by the Nigeria Sovereign Investment Authority
A $750m World Bank Distributed Access Project for rural solar mini-grids
But as progress accelerates, controversy brews over the Federal Government’s proposed ban on solar panel imports.
“Businesses, communities, and individuals rely on solar solutions… A ban, without first strengthening local production, risks derailing this progress,” the Renewable Energy Association of Nigeria (REAN) warned.
Critics argue Nigeria lacks the capacity to manufacture solar components like wafers and cells.
“Solar wafers are not produced from silicon in Nigeria… The companies assembling solar panels rely on imported cells,” said Theophilus Nweke, energy expert.
“The technology needed to locally manufacture solar panels is simply not in place,” he added.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises, also weighed in, urging a rethink:
“It’s important to clarify that Executive Order 5 is not a trade policy. The government should rather support local producers with tax incentives, financing, and reduced import duties.”
Despite the challenges, experts agree the shift toward renewables is irreversible—especially as Nigeria’s electricity consumption, at just 160 kWh per capita, still lags far behind the sub-Saharan average of 350 kWh.
“NERC’s regulatory interventions have been instrumental… By creating an enabling environment through policy adjustments and supportive frameworks, NERC has facilitated significant progress in rural electrification,” said Aliyu.
As the nation charges ahead with clean energy goals, the stakes remain high: effective regulation, supportive policies, and pragmatic decision-making could determine whether Nigeria’s renewable energy revolution succeeds—or stalls.
