Nigeria’s ongoing power crisis—marked by recurring grid collapses, unreliable electricity access, and high energy costs—is driving a nationwide pivot toward renewable energy solutions. From rural communities to urban centers, individuals, businesses, and institutions are increasingly embracing distributed renewable energy (DRE) systems as the country’s electricity grid continues to falter.
Since its privatisation in 2013, Nigeria’s national grid has collapsed over 140 times, with at least seven collapses recorded in 2024 alone. In 2025, two major disturbances have already occurred, highlighting the grid’s persistent fragility. Chronic issues such as inadequate gas supply, outdated infrastructure, underfunding, poor planning, energy theft, and governance inefficiencies have compounded the crisis.
With a current grid output averaging only 4 gigawatts (GW) for a population of over 230 million, more than 80 million Nigerians remain without access to electricity. To compensate for the shortfall, homes and businesses rely on small-scale diesel and petrol generators—estimated to supply about 24 GW at significantly higher costs than public grid tariffs.
Recognizing the urgent need for reform, the Nigerian Electricity Regulatory Commission (NERC) has intensified its role in promoting renewable and decentralized energy systems. Backed by the provisions of the 2023 Electricity Act, NERC now regulates and licenses embedded generation, mini-grids, hybrid solar systems, and other renewable technologies to close the energy access gap.
Among the agency’s interventions are the Mini-Grid Regulations (2016 & 2023), which streamline the licensing process, and the 2024 Supplementary Order mandating electricity distribution companies (DisCos) to source 10% of their energy supply from embedded generation—half of which must come from renewable sources.
According to the Commission, 316 renewable energy projects with a combined capacity of 149 MW were approved between 2019 and 2024. This includes 286 mini-grid projects (271 isolated, eight interconnected, and seven solar hybrid systems), and 30 embedded and captive generation licences totaling 112 MW.
The impact of this regulatory push is visible. The Rural Electrification Agency (REA) reported deploying over 500 mini-grids and 1.4 million solar home systems, providing access to clean electricity for 7.5 million Nigerians—including 300,000 women-led micro, small, and medium enterprises (MSMEs). REA Managing Director, Abba Aliyu, credits NERC’s regulatory reforms for accelerating implementation and attracting private investment.
Notably, NERC increased the mini-grid licensing threshold from 1 MW to 5 MW and facilitated rules for grid-interconnected mini-grids, enhancing operational scale and integration with existing networks. “These regulatory measures have empowered the REA to forge strategic partnerships and deliver large-scale renewable energy projects,” Aliyu said.
Nigeria’s Renewable Energy Master Plan targets 30% energy generation from renewables by 2030. The International Renewable Energy Agency (IRENA) estimates the country needs $10 billion in investments to meet its projected demand. Encouragingly, investor confidence is growing. The European Union, in collaboration with the German Agency for International Cooperation (GIZ), has committed €9.3 billion for interconnected solar mini-grids, while the World Bank approved $750 million for off-grid renewable expansion.
Similarly, the Nigeria Sovereign Investment Authority (NSIA) launched a $500 million fund for distributed renewable energy solutions. The African Development Bank (AfDB), in partnership with PowerGen, also announced a scalable DRE platform targeting 120 MW capacity for Nigeria and other African nations.
However, despite these advances, controversy surrounds the Federal Government’s proposed ban on imported solar panels. In 2024 alone, Nigerians imported over ₦200 billion worth of photovoltaic equipment—mostly from China, Germany, and India. The Minister of Science and Technology, Uche Nnaji, said the ban aims to boost local production through the National Agency for Science and Engineering Infrastructure (NASENI).
Yet stakeholders argue that local capacity is insufficient. The Renewable Energy Association of Nigeria (REAN) and energy experts like Theophilus Nweke warn that Nigeria lacks the technical infrastructure to produce critical solar components like wafers and cells.
“Without solar wafer and cell factories, panel assembly in Nigeria is dependent on imports,” Nweke said. “Implementing a ban prematurely risks derailing progress in the sector and hurting millions who rely on solar energy.”
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, also cautioned against conflating Executive Order 5 with a blanket trade policy. “Rather than an outright ban, the government should offer tax breaks, concessional loans, and reduce import duties on key renewable inputs like batteries and inverters,” he advised.
Yusuf emphasized that Nigeria’s per capita electricity consumption stands at just 160 kWh—less than half the sub-Saharan African average of 350 kWh—making the case for expanded solar energy adoption even more urgent.
As Nigeria pursues energy diversification and rural electrification under the Renewed Hope Agenda, experts agree that enabling regulatory frameworks, sustained private investment, and pragmatic policy choices will determine the pace and success of the renewable energy transition.
While initiatives by NERC and REA demonstrate commendable progress, stakeholders warn that restrictive policies—such as an import ban without sufficient local production capacity—could stall the sector’s momentum. For Nigeria to achieve its 2030 renewable targets and lift millions out of energy poverty, data-driven, inclusive, and forward-thinking strategies remain essential.