By Abbas Nazil
Amid worsening national grid collapses and deepening power deficits, Nigeria is witnessing a significant shift toward renewable energy solutions, driven by regulatory reforms and urgent energy needs.
Central to this transformation is the Nigerian Electricity Regulatory Commission (NERC), which has implemented strategic frameworks to boost investments in distributed renewable energy and reduce dependence on costly, polluting generators.
Nigeria’s national grid has collapsed over 140 times since privatisation in 2013, including seven incidents in 2024 alone.
These failures are caused by gas shortages, inadequate maintenance funding, poor planning, and outdated infrastructure.
Compounding the crisis are non-cost-reflective tariffs, government debt to power firms, widespread electricity theft, and ineffective governance.
With the grid supplying barely 4 gigawatts for 230 million people, over 80 million Nigerians lack access to grid electricity and rely on generators that collectively provide around 24 GW — at more than twice the grid tariff cost.
To close this gap, Nigeria has increasingly turned to solar and other distributed energy solutions.
NERC, empowered by the Electricity Act 2023, has introduced policies to fast-track licensing, encourage embedded generation, and mandate DisCos to source a minimum of 10 percent of their supply from embedded generation, half of which must be renewables.
The country targets 30 percent of its energy mix from renewables by 2030, capitalizing on an estimated 10 GW of solar potential, 6–10 GW hydropower, and 1,000 MW wind capacity.
Development agencies and investors have responded positively. The World Bank has committed $750 million for solar hybrid mini-grids, while the European Union and GIZ have invested €9.3 billion in interconnected solar systems.
Additionally, the Nigeria Sovereign Investment Authority launched a $500 million fund for distributed renewable projects, and PowerGen, with African Development Bank support, is rolling out 120 MW of renewable power.
Between 2019 and 2024, NERC approved 316 renewable energy projects totaling 149 MW, including 286 mini-grids and 30 embedded or captive generation licenses.
Rural Electrification Agency (REA) Managing Director Abba Aliyu credited NERC’s regulatory reforms with expanding energy access, enabling strategic partnerships, and accelerating project rollouts.
Over 500 mini-grids and 1.4 million solar home systems have been deployed, benefiting 7.5 million Nigerians and 300,000 women-led MSMEs.
Despite this progress, a recent government proposal to ban solar panel imports threatens to derail the momentum.
The Federal Government argues that local manufacturing, led by NASENI, can meet demand.
However, experts and stakeholders, including the Renewable Energy Association of Nigeria (REAN), warn that Nigeria lacks the capacity to produce essential components like solar wafers and cells. Current assemblers still depend heavily on imports.
Critics, including Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprises and energy analyst Theophilus Nweke, argue that banning imports without building local manufacturing infrastructure would increase costs, hinder energy access, and undermine Nigeria’s climate goals.
They recommend incentives such as tax breaks, reduced import duties on essential equipment, and affordable financing to support gradual local production instead of a hasty ban.
As Nigeria pushes for energy sufficiency and sustainability, stakeholders emphasize that data-driven policies, strategic investments, and inclusive planning are critical to maintaining progress in the renewable energy sector and avoiding setbacks.
