BAKU, Azerbaijan — In the sunny land of Nigeria, 14 new solar farms were initially envisioned to revitalize a sluggish solar sector and generate a substantial amount of electrical power, estimated to be about 20% of the country’s potential output during peak conditions.
“I felt a surge of excitement as we were trailblazers,” remarked Najim Animashaun, the managing director of Nova Solar Power, who was involved with one of the initiatives back in 2016.
However, this optimistic vision disintegrated due to the failure of Nigeria’s government to provide essential assurances to developers. While there is a growing interest in clean energy solutions—especially small-scale solar systems for residential use, which have gained tremendous popularity and created numerous job opportunities—significant developers struggle with Nigeria’s notorious business climate, deemed risky for investment.
This challenge is a widespread issue across sub-Saharan Africa, where 83% of the global population without electricity resides. Despite the abundant potential for solar energy in the region, actual installations remain strikingly low.
Antonio Guterres, the United Nations secretary-general, addressed this concern during a discussion on Africa’s green transition at the global climate negotiations held in Baku. He pointed out that many nations contend with exorbitant borrowing rates, spiraling debt, and insufficient climate finance, inhibiting their capacity to make necessary investments.
The impact is stark: countries are unable to unlock their clean energy potential.
Nigeria might be at the forefront of this dilemma. It bears the unfortunate distinction of having more of its citizens live without electricity than any other nation. The numbers have not improved over the past decade; as Africa’s most populous country, with a population exceeding 220 million, Nigeria’s growth has outpaced its energy sector’s expansion. Even those with access to the power grid deal with frequent blackouts. Many inhabitants resort to using wood for cooking and diesel generators for intermittent electricity.
During the climate discussions in Baku, over $300 billion was committed annually to assist developing nations such as Nigeria in moving away from fossil fuels while adapting to a warming climate, though many representatives from developing states criticized this as insufficient.
Securing adequate funding is crucial for Nigeria, which is faced with a tough energy transition. As an oil-rich country primarily funded by petroleum revenues, Nigeria currently relies on natural gas for the majority of its electricity supply. The government aims to grow the economy to lift millions above the poverty line while simultaneously committing to achieving net-zero emissions by 2060. This ambitious plan necessitates a significant influx of renewable energy projects, including solar and hydropower.
Animashaun of Nova Solar Power shared that prior to the launch of the 14 solar initiatives, Nigeria had taken steps to open up its electricity sector to attract private investments, creating a more conducive environment for new energy producers. The backing from investors was robust, leading him to feel optimistic about the future.
“There was an abundance of projects, resulting in a competitive atmosphere amongst us,” he added. “Everyone was eager to be the first to complete their concerns.”
Nevertheless, Nigeria’s high-interest rates and reputational challenges as a tough market ultimately led to the downfall of these solar endeavors. As the solar sector evolved and costs dropped, the government attempted to renegotiate what it believed were inflated prices for solar energy. Without the necessary guarantees from officials and international development banks, developers faced uncertainty. Animashaun recalled realizing the seriousness of the situation when the government proposed compensation in the local currency, rather than U.S. dollars.
“The local currency has lost 90% of its value since I embarked on this project,” he noted. “This makes Nigeria less financially viable.”
The underperforming electricity grid creates a profound demand for any form of power supply.
With the national grid only supplying a fraction of what is needed, many Nigerians turn to solar solutions for basic electrical needs. According to GOGLA, an association focused on off-grid energy, sales of micro-solar systems that power lights and charge mobile phones tripled from 2016 to 2023. Additionally, small rooftop solar systems that can support certain appliances saw a significant sales increase—though a decline was recorded following the end of a subsidy program this year.
Sun King is a prominent distributor of these small-scale devices capable of replacing not only harmful and costly kerosene lamps but also noisy diesel generators.
This burgeoning micro-solar sector demands a robust workforce, especially as Nigeria’s burgeoning youth demographic seeks employment opportunities. Olamide Ayo-Ogunlade, the human resources lead for Sun King in West and Central Africa, shared that the company’s outlets grew from 19 to 90 within four years, employing more than 8,000 “energy officers” responsible for selling, installing, servicing, and collecting payments for the products.
“Many of our energy officers begin as customers,” she explained. “They purchase the products, recognize their value, and then transition to become entrepreneurs in the energy field.”
These officers engage with potential clients at markets, churches, and community centers to showcase products. They receive comprehensive training, both online and in-person, to equip them for their roles.
Such training is imperative, especially as some consumers in the region express doubts about the reliability of solar systems. Siré Diallo, an energy and climate finance expert with the United Nations Development Programme, emphasized that poor quality installations and equipment have historically left many consumers dissatisfied. While improvements have been noted, the expansion of training initiatives remains essential.
The need for jobs is undeniably present, stated Akin Olukiran, CEO of ABG-CAPS Clean Energy Generation, a company that installs solar systems for businesses. He revealed that he receives an average of 10 to 20 unsolicited applications per day, highlighting the talent among applicants, but lamented that suitable job opportunities are scarce.
Alberto Rodríguez Gómez from the Rocky Mountain Institute illustrated a practical solution through an upcoming project at Nigeria’s largest market, which will incorporate solar panels connected to batteries to ensure reliable electricity even during power outages.
Sellers currently endure the challenges of operating in cramped spaces filled with thick, polluted air, exacerbated by the noise from diesel generators. “It becomes incredibly hard to hold a conversation amid the chaos of generator noise,” Gómez lamented, envisioning that solar installations would significantly enhance the market environment.
Last year, the World Bank approved a $750 million initiative aimed at improving electricity access for 17.5 million Nigerians through support for projects like microgrids and small home solar setups. However, experts stress that this will only scratch the surface of what is required.
Animashaun believes Nigeria is approaching a critical turning point in its energy landscape, with rising living costs putting pressure on the government to act.
“To prevent social unrest, immediate action is essential,” he warned.