By Abbas Nazil
Nigeria has emerged as Africa’s second-largest solar market in 2025, recording a remarkable 141% year-on-year growth with the installation of 803 megawatts of new solar capacity, according to the Africa Market Outlook for Solar PV 2026–2029 report by the Global Solar Council.
This surge reflects a major shift in Nigeria’s energy sector, as millions of households and businesses increasingly turn to renewable energy to escape the high costs and frequent unreliability of the national grid.
The economic impact of this rapid solar adoption is significant, driving both decarbonization and cost savings.
For years, the hum of diesel generators was ubiquitous in Nigerian homes and businesses; today, solar panels are replacing that noise with quiet efficiency.
The move toward localized energy production through distributed solar systems is helping small and medium-sized enterprises reduce exposure to volatile global fossil fuel prices, especially after the removal of fuel subsidies in 2023.
Nigeria’s ascent to second place, overtaking Egypt and trailing only South Africa, is fueled by high electricity tariffs and the rollout of the DARES (Distributed Access through Renewable Energy Scale-up) program, making solar a necessity rather than a luxury.
In 2025, Africa as a whole installed a record 4.5 gigawatts of solar power, with Nigeria accounting for 17% of the total, indicating a maturing market transitioning from donor-funded projects to a commercially viable industry.
The country also faces a persistent energy access gap, with over 85 million people off-grid, but the rise of decentralized mini-grids and rooftop solar systems is beginning to bridge this divide, empowering both rural communities and urban centers.
Local manufacturing is also gaining traction, with firms such as Auxano Solar earning international certifications, signaling Nigeria’s potential to move from import dependency to domestic production.
However, high costs of capital and financing remain challenges, with African solar projects three to five times more expensive than in developed nations.
Despite these hurdles, Nigeria’s long-term solar market outlook is highly promising, combining policy incentives with private sector innovation to create a sustainable, decentralized, and resilient energy future, positioning the nation for broader electrification and energy sovereignty.
This rapid growth in solar adoption marks a transformative step in Nigeria’s journey toward a renewable energy-driven economy and serves as a model for other African nations seeking to overcome energy challenges.
