Market News

By Dare Olawin

Nigeria is targeting a major expansion of its electricity generation capacity, with plans to achieve 209,000 megawatts of power generation by 2050, especially with 53 large-scale renewable solar power projects valued at about $11bn underway, according to a report by IIR.

The projects, which IIR said are being tracked across the country, form part of a growing pipeline of solar investments aimed at strengthening Nigeria’s energy mix and improving electricity access, particularly in underserved communities.

The report indicates that the 53 large-scale solar projects are currently underway in Nigeria, reflecting rising investor interest in the country’s renewable energy sector.

The projects are expected to contribute significantly to Nigeria’s long-term energy transition plans, which prioritise solar expansion as a key driver of future electricity supply.

In addition to utility-scale developments, Nigeria is also pushing ahead with decentralised electrification efforts through solar mini-grids and off-grid systems.

Under a nationwide initiative led by the Rural Electrification Agency, the Federal Government is deploying more than 1,300 solar mini-grids and off-grid power systems to expand electricity access in rural and underserved areas.

The programme includes 250 interconnected mini-grids designed to supply electricity directly into the national grid, helping to stabilise supply and reduce reliance on diesel generators in off-grid communities.

The initiative is backed by $750m in public funding and is expected to attract an additional $1.1bn in private sector investment, according to the REA.

Speaking on the programme, REA Managing Director Abba Aliyu described the initiative as a landmark intervention in Nigeria’s power sector.

“For the first time, we are witnessing the implementation of the biggest publicly funded renewable electricity project in the entire world. It is a $750m project that will catalyse $1.1bn in private sector funding to deploy 1,350 mini-grids across the country,” he said.

Aliyu added that the Federal Government is repositioning renewable energy as a key alternative source of electricity.

“For the first time in the history of the country, the Federal Government is positioning the renewable energy sector of the Nigerian economy as the alternative source of electricity in the country. It’s the easiest and most economically viable means of powering the country, and we have an abundance of renewable energy sources. President Bola Tinubu is positioning Nigeria now to be the renewable hub of Africa, and there is a structured programme which will see 17.5 million Nigerians (20 per cent of the population) provided with electricity in just three years,” Aliyu said.

It was learnt that Nigeria has already made progress in deploying mini-grids nationwide, with over 1,000 systems installed, more than half of which were financed by the REA.

The country’s Distributed Access through Renewable Energy Scale-up programme, supported by the World Bank, is also accelerating rural electrification through solar mini-grids, standalone systems, and storage-based solutions.

The initiative aims to replace over 250,000 diesel generators across the country while expanding access to clean and reliable electricity.

According to the Global Solar Council, Nigeria added 803MW of solar capacity in 2025, bringing total installed solar capacity to approximately 1,019MW.

It was stated that Nigeria’s renewable energy expansion aligns with broader continental efforts such as the World Bank-backed Mission 300 initiative, which seeks to connect 300 million Africans to electricity by 2030.

Since its launch in January 2025, the programme has reportedly delivered electricity access to 44 million people across Africa.

While gas-fired plants remain the dominant source of electricity generation in Nigeria, renewables currently account for about 23 per cent of the energy mix, largely driven by hydropower and solar installations.

The Federal Government has set a target of a 30 per cent renewable energy contribution by 2030 and 82 per cent by 2050, as part of its long-term energy transition and net-zero 2060 commitment.

Most of the future capacity growth is expected to come from solar energy, with Nigeria aiming for 209,000MW of installed solar capacity by 2050.