The Nigerian government is accelerating its solar installation projects, aiming to equip public institutions with large-scale solar systems by 2025. Backed by a record N500 billion budget and endorsed by President Bola Ahmed Tinubu, this initiative is spearheaded by the Rural Electrification Agency (REA) to cut governance costs and promote sustainability.
Accelerating Solar Installation with Boosted Capacity and New Policies
Nigeria is making significant strides in solar energy adoption. The government plans to install large-scale solar systems in public institutions by 2025, an initiative led by the Rural Electrification Agency (REA) to lower energy costs and champion sustainability.
During the REA’s budget defence in Abuja, Managing Director Abba Aliyu presented a record-breaking N500 billion budget for 2025—the largest allocation in the agency’s history. He noted that President Bola Ahmed Tinubu’s approval prioritises this as a strategic move to cut governance costs.
A key component is the National Public Sector Solarisation Initiative, which has been allocated N100 billion. This solar panel installation government scheme aims to replace costly diesel-powered generators with efficient solar energy systems in government buildings.
Aliyu highlighted the significant expenditure on diesel, stating this initiative will drastically reduce operational expenses while enhancing energy efficiency.
“So, the Federal Government now sees it as a way to reduce the cost of governance and provide REA with funding for use to solarise this public institution. This is part of what we presented to the House Committee,” said Aliyu.
Solar Capacity Reaches New Heights
Nigeria has significantly expanded its solar energy capacity. According to the Africa Solar Industry Association (AFSIA), the country added 63.5 Megawatt peak (MWp) of installed solar capacity in 2024, bringing the total to 385.7 MWp.
This growth was largely driven by the removal of the fuel subsidy, which prompted many Nigerians to seek a budget solar installation as a cost-effective alternative to diesel and unstable grid power.
The AFSIA report also highlighted a rising interest in solar-plus-storage solutions. These systems provide a reliable and affordable energy source, helping Nigerians transition away from fossil fuels and underscoring the nation’s potential to lead Africa’s renewable energy sector.
To support this momentum, the government is working to make solar energy more accessible. Dr Mustapha Abdullahi, Director General of the Energy Commission of Nigeria (ECN), confirmed policies aimed at making solutions affordable by 2025.
Key steps include establishing a domestic solar panel and battery manufacturing plant to lower production costs and launching a Renewable Energy College to address the skills gap. Dr Abdullahi explained that these efforts aim to slash the $14 billion spent annually on generators and diesel.
Collaborative Efforts and International Partnerships
International partnerships are also bolstering Nigeria’s solar energy sector. A notable example is the joint venture between the Nigeria Sovereign Investment Authority (NSIA) and North South Power (NSP), which is supporting a 20 MW solar-hydro hybrid project at the Shiroro Hydroelectric Power Plant.
This project is part of a larger 300 MW solar programme, showcasing how integrating solar power into the national grid can improve energy reliability and reduce dependence on fossil fuels.
This focus on solar installations highlights Nigeria’s commitment to sustainable energy development. With its rapidly growing solar capacity, the country is well-positioned to meet its electrification and decarbonisation goals while providing clean, reliable energy for millions.
As Nigeria prepares for its ambitious 2025 solar projects, this transition to renewable energy marks a pivotal moment. These efforts will support economic growth, improve energy access, and pave the way for a cleaner, greener future.
