By Abdullahi Lukman
Industry stakeholders have identified battery storage and smart energy systems as the next major drivers of Nigeria’s renewable energy sector, citing declining technology costs and improved investment prospects.
Speaking at the Solar & Storage Live Nigeria 2026 conference in Lagos, the Managing Director and Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, said future investments in the country’s electricity sector would increasingly focus on energy storage rather than power generation.
According to him, the REA is developing 48 interconnected mini-grids with a combined capacity of about 288 megawatts to improve electricity access in rural communities. He added that all new REA-backed mini-grids are being fitted with Internet of Things (IoT)-enabled smart meters to enhance load management, billing efficiency and predictive maintenance.
Aliyu also disclosed that the agency has deployed artificial intelligence to map more than 750,000 communities across the country, using demographic and economic data to identify viable locations for energy projects and guide investment decisions.
On policy, he described the Electricity Act 2023 as a significant reform that has expanded opportunities for private sector participation by granting states greater authority over electricity regulation, while urging state governments to take advantage of the new framework.
Also speaking at the conference, President of the Renewable Energy Association of Nigeria (REAN), Ayo Adedimulua, said the belief that renewable energy remains too expensive is no longer accurate due to sharp declines in technology costs over the past decade.
He noted that the falling prices of solar panels, batteries and other components have strengthened the economic case for renewable energy, making it increasingly competitive with conventional sources of electricity.
Adedimulua said investments in solar and battery systems provide long-term value compared to the recurring costs of diesel and petrol, while stressing that Nigeria also possesses abundant hydro, wind, biomass and geothermal resources capable of supporting the country’s energy transition.
He added that the strong participation of manufacturers, investors, developers and policymakers at the conference reflects growing confidence in Nigeria’s renewable energy industry.
