Nigeria’s broken grid is quietly building Africa’s fastest solar market

…Nigeria now Africa’s second largest solar market

…Presidential Villa turns to solar as grid unreliability worsens

When the lights went out for the fourth time in a single day last December, Catherine Ime did not reach for the diesel generator she had been running for six years.

Instead, she turned to solar energy, a solution that is increasingly becoming common across Nigeria.

The business owner in Abuja had spent the previous weekend getting quotes for a rooftop solar system. By new year’s day, the panels were up.
“Catering for a large household without a steady electricity supply resulted in massive food waste, as bulk-cooked meals and refrigerated groceries routinely went bad,” Ime told BusinessDay.

For years, her family had battled erratic electricity supply, spending heavily on fuel while enduring the inconvenience of prolonged blackouts. With family members working remotely and a household dependent on electricity for everyday activities, the cost of unreliable power became increasingly difficult to bear.

Ime’s decision is being replicated across Nigeria, as households and businesses increasingly turn to solar power in response to persistent grid failures.

Africa’s most populous nation, with more than 220 million people, vast oil reserves and a national electricity grid that still struggles to keep the lights on, has quietly become the continent’s second-largest solar market after South Africa.

Nigeria’s power sector has long struggled with chronic underperformance. Despite generating electricity since 1896, supply has consistently failed to keep pace with demand. By March 2026, the national grid was supplying around 3,940 megawatts to more than 220 million people — about the output of a single mid-sized European power station.

For decades, Nigerians filled the gap by relying on petrol and diesel generators, a system so deeply embedded in everyday life that it is simply called “gen.”

Industry estimates show the country spends about $14 billion annually running generators. In Lagos alone, emissions from generator use are estimated to equal the output of 8.5 million cars each year.

But the economics of self-generation have changed.

The removal of fuel subsidies in 2023 sent petrol prices soaring, while the devaluation of the naira pushed up operating costs. For many households and small businesses, the monthly cost of running a generator, combined with electricity bills for an increasingly unreliable service, began to rival or even exceed the annualised cost of installing solar power.

“Because of the large house and lack of constant power supply, most of the things we cook and stock up in the fridge get spoiled,” Ime said.

“It was especially tough for us because we had people working from home, and we pump water from the borehole too. When the power went out for days, we had to spend a lot of money running generators and finding places just to charge our phones and laptops.”

The switch to solar transformed the family’s experience.

“But then when we installed solar, it became a different ball game for us because we now get to pump water easily, we can power our refrigerator, and then we can stock up on food depending on the time we want to use them,” she said.

“So right now, we don’t necessarily desire that they should bring light. If they want to bring the light, they should bring the light. If they don’t want to bring the light, they should not bring the light.”

According to her, the transition has also significantly reduced household expenses.

“It has saved us a lot of expenses, especially buying fuel to pump water and powering the house. We can charge our phones whenever we need to and no longer worry about prolonged blackouts,” she added.

In Dutse, Abuja, Ise Tony said he turned to solar power more than a year ago after years of unreliable electricity supply.

“The power supply in my area has not been reliable; that was why we opted for solar energy,” Tony said.

“The solar system is quite efficient, and I always have electricity in my house provided there’s daylight. It powers my television, fridge, fan and lighting. Depending on the capacity you are going for, the inverter system is quite affordable.”

The shift is not limited to consumers in poorly supplied neighbourhoods. Even Band A electricity customers, who were subjected to steep tariff increases in 2024 on the promise of receiving at least 20 hours of electricity daily, are increasingly turning to solar as supply falls short of expectations.

Andrew Chinemere, a resident of Asokoro, Abuja, said he invested so much in a solar system despite being classified as a Band A customer because the improved service promised by electricity distributors never fully materialised.

“When the tariff increase was announced, we were told Band A customers would enjoy a minimum of 20 hours of electricity every day. But the reality has been different. There are days when supply drops significantly, and you are left wondering what exactly you are paying for,” Chinemere told BusinessDay.

According to him, the decision to install solar was driven by a desire for certainty rather than lower costs.
“I realised I was paying a higher electricity bill and still spending money on alternative power. It didn’t make economic sense. With solar, at least I know what to expect every day regardless of what happens to the grid,” he said.

The growing loss of confidence in grid reliability is evident even at the highest levels of government. Earlier this year, the federal government approved plans for the installation of a solar power system at the Presidential Villa in Abuja, a move widely viewed as a reflection of the broader shift towards alternative energy sources amid persistent challenges in the national electricity sector.

The growing adoption of solar energy is occurring alongside government efforts to expand access to renewable electricity through large-scale investments and rural electrification programmes.

Abba Abubakar Aliyu, managing director of the Rural Electrification Agency (REA), said renewable energy has become a strategic alternative source of power for millions of Nigerians.

According to him, the federal government is implementing a programme designed to position Nigeria as Africa’s renewable energy hub while expanding access to electricity.

“The president approved the biggest publicly funded renewable energy financing in the entire world, the $750 million programme, which will catalyse $1.1 billion in private-sector financing to electrify 17.5 million Nigerians,” Aliyu said.

The programme is expected to deploy 1,350 mini-grids across the country, including 250 interconnected mini-grids that will support communities connected to the national grid.

Aliyu said more than 1,000 mini-grids have already been developed nationwide, with 519 financed directly by the REA.

The agency is also deploying more than 42 interconnected mini-grids that will inject over 200 megawatts of renewable electricity into the country’s power system.

“These interconnected mini-grids are going to come with battery storage that will continue to enhance the reliability of supply,” he said.

Beyond households, the REA is extending renewable energy infrastructure to key sectors of the economy.

According to Aliyu, hybrid mini-grid infrastructure has already been deployed in 15 universities across the country. The agency is also supporting agricultural production and processing clusters with renewable energy infrastructure to boost productivity.

“In terms of health, we have completed the deployment of 100 containerised mini-grids in different health institutions across the country,” he said.

He further revealed that Nigeria has begun exporting locally manufactured photovoltaic panels.

“For the first time in the history of the country, we are now exporting PV panels made in Nigeria to other countries, including Ghana,” he said.

To further promote the adoption of renewable energy, the Nigerian Electricity Regulatory Commission (NERC) has introduced a framework that allows eligible solar users to sell surplus electricity back to the grid.

Under the commission’s 2026 Net Billing Regulations, consumers with renewable energy systems can generate electricity for their own use and export excess power through distribution company networks.

The regulation applies to consumers with renewable energy systems ranging from a minimum installed capacity of 50 kilowatt-peak to a maximum of 1.5 megawatt-peak.

According to NERC, participating customers must be connected to a distribution company’s network, obtain the necessary approvals and comply with relevant technical and regulatory requirements.

The commission said specially installed bidirectional meters will record both electricity consumed from and supplied to the grid, with exported electricity credited according to approved tariffs.

The objectives of the regulations include promoting renewable energy adoption, enhancing energy security and reliability, encouraging private-sector participation in distributed generation, reducing greenhouse gas emissions and supporting the integration of renewable energy into distribution networks.

Although the capacity threshold means the programme is primarily targeted at medium- and large-scale consumers rather than households with small rooftop installations, industry stakeholders say the regulation could unlock additional investment in distributed renewable energy.

The policy comes as solar adoption continues to accelerate across Nigeria amid persistent grid instability, rising fuel prices and growing demand for reliable electricity.

Combined with government-backed renewable energy investments, the deployment of hundreds of mini-grids and new regulatory incentives from NERC, the country’s solar market appears set for further expansion.

For consumers like Ime and Tony, however, the shift is less about policy and more about reliability.

For industry observers, the symbolism is difficult to ignore. If Nigeria’s seat of power is investing in solar energy to guarantee reliable electricity, it underscores the extent to which consumers across income groups are seeking energy independence from an increasingly unreliable grid