Solar Energy Ascends in Nigeria

Nigeria is experiencing a rapid transition to solar power, with the technology now supplying approximately 20% of the nation’s electricity needs. Industry leaders project this figure will reach 50% within three years as manufacturing capacity expands and cost advantages become increasingly apparent.

Driving Factors Behind Solar Adoption

The surge in solar usage is attributed to several key factors:

• Cost competitiveness: With fuel subsidies removed, diesel and petrol generators are significantly more expensive than solar alternatives
• Manufacturing growth: Companies along the Lagos–Sagamu industrial corridor are ramping up production of solar panels, creating a robust local supply chain
• Demand across West Africa: Manufacturers are targeting not only Nigeria but also neighboring countries with growing energy needs
• Decades of grid instability: Persistent power outages and unreliable transmission have pushed consumers toward decentralized solutions

Capacity Expansion Underway

A total of 3.7 gigawatts in solar PV panel manufacturing capacity is currently under development, signaling a significant commitment to expanding domestic production.

Beyond Homes and Businesses

The adoption extends beyond residential and commercial users:

• Universities and hospitals: The Federal Government approved N68.7 billion for solar electrification projects across these vital institutions
• Aso Rock Presidential Villa: Plans are underway to disconnect Nigeria’s seat of power from the national grid, saving an estimated N47 billion annually
• Mobile network sites: Airtel Nigeria is transitioning its base stations to solar power, reducing operational costs and environmental impact

Import Surge Alongside Local Production

While domestic manufacturing grows, imports of solar panels have also increased dramatically. According to the National Bureau of Statistics, over N435 billion worth of panels were imported in 2025 alone.

This expansion is supported by flexible financing options like buy-now-pay-later schemes from companies such as Sun King, Eden Power, and Itel, making solar accessible to a wider range of consumers.