With growing demand off the national grid and support from international financiers, the federal and state governments are scaling solar mini-grid programs to deliver cleaner, more reliable electricity to millions.
Nigeria is stepping up efforts to deploy solar mini-grids across rural and underserved urban areas, aiming to reduce reliance on diesel generators and compensate for the deficiencies of the national grid. The country’s government and private partners have announced multiple projects, financing agreements, and budget allocations over 2024-2025 that signal a strong pivot toward decentralized renewable power.
The Rural Electrification Agency signed a $200 million deal with WeLight, a distributed renewable energy company, to install hundreds of renewable mini-grids. This partnership is expected to bring electricity to an estimated 1.5 to 2 million people in rural and peri-urban communities. The project includes the development of 400 mini-grids and 50 MetroGrids across Nigeria.
In Plateau State, two communities Bakin Ciyawa and Kwande, recently benefited from a hybrid solar mini-grid with a combined capacity of 550 kilowatts, providing electricity for the first time to about 3,500 households and businesses. Projections from the scheme suggest substantial emissions reductions and expanded access as part of a broader plan to bring clean energy to hundreds of communities across all geopolitical zones.
The federal government has allocated ₦100 billion in the 2025 budget toward the National Public Sector Solarisation Initiative. Under that initiative, solar mini-grids will be installed in key public institutions such as federal universities, teaching hospitals, and government offices to cut power costs incurred from diesel generators and unstable grid supply.
State governments are also contributing. In Jigawa State, the governor commissioned a solar hybrid mini-grid project worth about ₦1.2 billion in the Kafin Hausa area. The project, developed by Future Energies Africa through its renewable energy arm, Bagaja Renewables, includes a 500 kWp solar-hybrid plant with distribution infrastructure, transformers, and backup diesel generation capacity. It is part of the state’s target to deploy 10 MW of solar hybrid mini-grids.
Private companies are likewise active. ENGIE Energy Access has launched 15 mini-grids, totalling 1.4 MW in capacity, across three states, Niger, Kogi, and Nasarawa, serving approximately 30,000 people. This is done in partnership with CrossBoundary Energy Access, with financing directed toward reducing CO₂ emissions and replacing costly diesel generation in off-grid communities.
Another investor partnership involves Husk Power and funding from the International Finance Corporation and the Canadian government to deploy 108 hybrid mini-grids serving more than 115,000 people in northern Nigeria. This is part of a broader push to increase access in areas where grid supply is especially weak or nonexistent.
While solar mini-grids have higher per-unit costs compared to grid electricity, they are considerably cheaper than diesel generator-based electricity. In many underserved areas, reliability and cost savings are already being felt by households and small businesses. The promise of reduced subsidies, cleaner alternatives, and greater energy autonomy is fueling interest among investors, local and foreign.
The government has set ambitious goals, including increasing renewable energy’s share in the national electricity mix and encouraging states to take ownership of distributed generation. Numerous policy instruments, budget allocations, regulatory frameworks, partnerships with development banks, and incentives for the importation of solar panels are being deployed to support the shift.
Yet challenges remain. Upfront capital costs, maintenance, regulatory bottlenecks, and ensuring community ownership and technical support are among the issues that could hamper scaling. But with heightened urgency from frequent power outages, high costs of diesel, and a growing base of impoverished communities with little or no grid access, momentum behind solar mini-grids in Nigeria appears stronger than ever.
As solar projects continue to expand, the outlook suggests millions more Nigerians will gain access to cleaner, more consistent power, altering both economic opportunities and quality of life in communities long neglected by the grid.
Source: Rural Electrification Agency, State Government Offices