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Nairametrics
Home Sectors Energy

Despite massive government investment, solar power adoption in Nigeria remains low—here’s why 

Olalekan Adigun by Olalekan Adigun
March 24, 2025
in Energy, Exclusives, Features, Sectors
Reps move to probe why FG’s N3.4bn solar power project failed, FG inaugurate a 7.5KW solar mini grid in Anambra state.
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Nigeria’s struggles with persistent energy crises are not a facade, and the issue has endured longer than anticipated in the present era of alternative energy solutions.

Despite the significant government’s heavy investment in renewable energy, particularly solar power, adoption appears to remain slow across the country.

According to the Federal Government, about 86 million Nigerians, mostly in rural areas, still lack access to electricity.

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To bridge this gap, the government identified distributed renewable energy, particularly mini-grids powered by solar photovoltaic (PV) systems, as the fastest and most efficient solution.

To this end, the government secured a $750 million funding package from the World Bank to electrify 17.5 million Nigerians.

Also, the Federal Government allocated N100 billion for the National Public Sector Solarisation Initiative project under the recently passed 2025 budget.

Under the initiative, the federal government plans to install solar mini-grids in public institutions across Nigeria.

Additionally, the Rural Electrification Agency (REA) recently unveiled its plan to provide electricity to 25 million Nigerians within the next three years.

Despite these ambitious investments, solar power adoption remains sluggish.

Challenges Hindering Solar Power Adoption 

Nigeria has made significant investments in renewable energy, particularly through initiatives like the REA’s projects and the Solar Power Naija program.

Billions of naira have been allocated to solar energy projects, yet widespread adoption among households and businesses has not taken off as expected.

Jegede Olujinmi, Managing Director of Canon Solar in Nasarawa state, told Nairametrics that a lack of adequate awareness, particularly in rural areas, is a major factor contributing to low adoption rates. “Many people in rural areas do not fully understand the benefits of solar power. In urban centers, awareness is significantly higher,” he explained.

Apart from a lack of awareness, there are other barriers hindering the widespread adoption of solar energy in Nigeria.

Omale, who owns a barbing salon at One Man Village, Nasarawa state, expressed concerns over the cost of installing his solar panels and inverters. He noted that he went ‘over the roof’ to pay N350,000 to get it done when the transformer in the area got damaged by suspected vandals last year.

This view was also shared by Felicia, who recently opened a food store close to O46 area. Though she admits the solar is considerably cheaper, she said many SMEs may not make the adoption of solar installations priorities as initial investments.

Most of the respondents expressed serious concerns over the potential maintenance costs of the panels.

For Nigeria to fully harness its solar potential, stakeholders say, the government must intensify efforts to promote awareness, implement favorable policies, and create financing schemes that encourage individuals and businesses to invest in solar energy.

Expanding local manufacturing of solar components, providing tax incentives, and improving research and development in the sector, experts say, will further drive solar adoption.

 Not all roadblocks in solar energy adoption  

Albert Oladunjoye, a researcher at the University of Abuja who has spent the last three years studying solar adoption, emphasized the untapped potential of Nigeria’s abundant sunshine.

“We have a lot of sunlight, and we need to harness the opportunity available in terms of solar energy,” he said.

“There is no need for us to keep relying on the main grid system when we can integrate renewables and decentralize electricity supply. Solar prices are dropping, and the inputs required to build solar infrastructure are more readily available. Adopting solar power will also contribute significantly to environmental sustainability, as solar energy systems produce no greenhouse gas emissions,” he added.

Another solar power consultant, Ben Ishaku, highlighted the cost-effectiveness of solar energy in the long run.

He said many do not know that once they install solar infrastructure, there will be no need to pay monthly electricity bills or bother about estimated billings. He said that makes solar power a sustainable solution for households, businesses, and industrial operations.


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Tags: Renewable EnergySolar adoption
Olalekan Adigun

Olalekan Adigun

Olalekan Adigun is a seasoned political analyst and writer with extensive experience in crafting compelling narratives and executing strategic initiatives. Known for his insightful commentary on governance, policy, and socio-economic issues, he has contributed to various national and international platforms.

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