In 2024, the Nigerian government allocated a significant sum of N22,782,065,914.14 to various solar power projects aimed at addressing the country's energy needs. This investment is a part of the government’s broader strategy to boost renewable energy access — particularly in rural areas — through solar power installations.
Breakdown of Solar Power Project Expenditures
Several federal ministries, departments, and agencies contributed to the funding for solar power projects in 2024. On March 6, 2024, the Federal Ministry of Agriculture and Food Security paid M3 @ JW Ltd N573,537,170.75 for solar streetlight installation in Kebbi State.
The payment was followed by a disbursement of N508,587,421.44 by the National Rural Electrification Agency to LRB Global Investment Limited on March 18, 2024, for similar installations in Lagos markets. By April 2024, more solar power projects in Kano State were funded by the Ministry of Agriculture, with N712,778,775.68 directed to Northwest Business Solutions Ltd for solar streetlight installations in Gwarzo and Bagwai Local Government Areas.
Further investments were made throughout the year. The Federal Ministry of Works allocated N653,955,813.95 on August 9, 2024, for solar power installations in flood-affected areas in Lagos. The National Rural Electrification Agency also contracted various companies, such as JRB Solar Investment Ltd, to install high-output solar streetlights in the Northeast geopolitical zone.
A variety of solar power projects across multiple states in Nigeria received funding. Substantial sums were directed to the installation of solar streetlights and grid connections in regions like Sokoto, Niger, Ogun, Kano, and Bauchi.
Government’s Strategy for Rural Electrification
These solar power projects are a key part of Nigeria’s ongoing efforts to address energy access issues, particularly in rural communities. A significant portion of the budget is dedicated to the installation of solar streetlights. These solar power projects improve safety and accessibility and also contribute to the country’s larger goal of enhancing energy infrastructure. In addition to streetlights, other investments focus on rural electrification, which is a priority for the Nigerian government.
The Energy Commission of Nigeria has been actively involved in distributing funds for solar power projects in areas like Kano and Bauchi States. Investments in mini-grids and off-grid solutions are also part of the plan to power areas that are not connected to the national grid.
The government is targeting over 80 million Nigerians who currently lack access to electricity. The government is leveraging partnerships with international bodies to achieve this goal. The African Development Bank has committed $700 million to the “Desert to Power” initiative. This initiative seeks to harness the abundant solar resources of northern Nigeria for renewable energy.
Solar Power Projects and Economic Growth
The government’s continued investment in solar power projects aligns with its efforts to diversify the economy and create sustainable energy solutions. By investing in solar energy, the government is increasing energy access and local jobs. The demand for skilled labour and materials for solar power installations fosters economic activity — especially in rural areas. These projects are crucial for both economic growth and achieving environmental sustainability.
In addition to benefiting local communities, the government’s solar power projects have the potential to reduce the reliance on fossil fuels, decrease carbon emissions, and mitigate the effects of climate change. While solar power is gaining traction globally, Nigeria is still in the early stages of fully adopting renewable energy. The government’s investments reflect its commitment to enhancing the country’s energy mix and transitioning to cleaner energy solutions.
Challenges and Way-forward
Despite the large financial allocations, there are concerns over the effectiveness and quality of solar power projects in Nigeria. Critics, including Chief Princewill Okorie of the Electricity Consumer Protection Advocacy Centre, have pointed out that many past solar power installations have failed due to poor-quality materials and lack of proper supervision. Okorie emphasized the importance of stringent monitoring to ensure that solar power projects meet quality standards.
Moreover, there are concerns about the scale of the government’s investments in comparison to the needs of the nation. The President of the Nigeria Consumer Protection Network, Mr. Kunle Olubiyo, pointed out that Nigeria’s renewable energy investments are significantly lower than those of countries like China, which added over 160 GW of solar capacity in 2024 alone. Olubiyo criticized Nigeria’s 2024 solar power expenditure, estimating it at only about $13 million, a sum he deems insufficient to address the country’s energy challenges.
Olubiyo also warned that Nigeria risks falling behind in the global energy transition if it continues with modest investments in renewable energy. He called for more substantial funding and a strategic policy shift to support the growth of the renewable energy sector.
The “Desert to Power” project and the government’s efforts to integrate renewable energy into various sectors, including education, agriculture, and health, are crucial for sustainable development. Nigeria must overcome the challenges of inconsistent investments and improve the long-term durability of solar power installations.