Sunshine State of Mind: Nigerians Hope for Solar-Powered Future
Nigeria, with its abundant sunlight, is poised to revolutionize its solar industry with 14 new solar farms. These farms are expected to generate a substantial amount of power, equivalent to approximately one-fifth of the country’s total electricity grid capacity on a typical day.
Najim Animashaun, Managing Director of Nova Solar Power, recalled the enthusiasm in 2016 as his company embarked on one of the pioneering solar projects in Nigeria, saying, “We were trailblazers, and that excitement was palpable.”
Nigeria’s ambitious solar plans fizzled out due to the government’s failure to provide essential guarantees to developers. Despite strong demand for clean energy, with small-scale solar systems for homes gaining immense popularity and creating jobs, large-scale developers have been deterred by Nigeria’s reputation as a high-risk business environment.
Sub-Saharan Africa faces a significant challenge, as it is home to 83% of the world’s population without access to electricity. Despite boasting immense solar potential, the region has seen minimal solar installations, hindering its progress toward energy accessibility.
António Guterres, the United Nations secretary-general, highlighted the significant challenges many African countries face in their transition to green energy. He noted that these nations are struggling with extremely high borrowing costs, unmanageable debt levels, and insufficient climate finance and investment opportunities.
The UN Scribe emphasized that these challenges have a profound impact, effectively stifling Africa’s clean energy revolution.
Nigeria is at the forefront of the electricity crisis, with more of its citizens living without power than any other country. Despite a growing population, the number of Nigerians without electricity has increased over the past decade. Even those with grid connections experience frequent outages, forcing millions to rely on unsustainable energy sources like wood for cooking and diesel generators for intermittent electricity.
At the Baku climate talks, a commitment of at least $300 billion per year was made to support developing countries, including Nigeria, in their transition to renewable energy and adaptation to climate change. However, many developing nations criticized this pledge as grossly inadequate.
Nigeria’s energy transition poses significant challenges, and securing sufficient funding will be crucial. As a major oil-producing nation, Nigeria relies heavily on oil revenue to run its government. The country currently generates most of its electricity from natural gas. To achieve its ambitious goal of reaching net-zero by 2060 while expanding its economy and lifting millions out of poverty, Nigeria will require a massive influx of new renewable energy projects, including solar and hydropower initiatives.
Najim Animashaun of Nova Solar Power recalled that prior to the announcement of the 14 solar projects, Nigeria had taken steps to liberalize its electricity sector, making it more attractive to private investors and simplifying the process for new power producers to sell electricity. With robust investor support, Animashaun was filled with optimism about the prospects for Nigeria’s solar industry.
Animashaun described a surge in solar projects, which sparked intense competition among developers, with each striving to be the first to complete their project.
The deal ultimately fell through due to Nigeria’s high interest rates, perceived financial risks, and the government’s attempt to renegotiate the price of solar power as the industry evolved and prices decreased. Developers were unable to secure the desired guarantees from officials and international development banks. A turning point came when the government proposed a deal denominated in local currency rather than US dollars, which raised significant concerns for Animashaun.
He explained that the drastic devaluation of Nigeria’s currency, losing 90% of its value since he began the project, makes the country an unreliable investment destination, essentially rendering it “unbankable.”
Nigeria’s severely underdeveloped power grid has created a situation where there is demand for any form of electricity, regardless of the source or cost.
Due to Nigeria’s inadequate grid, many residents have turned to solar solutions to meet their basic energy needs. According to GOGLA, an off-grid energy industry association, micro-solar systems that power lights and charge phones tripled in adoption from 2016 to 2023. Additionally, sales of small rooftop solar systems capable of running some appliances increased significantly, although sales slowed down after a subsidy program ended this year.
Sun King is a leading provider of small solar-powered devices that offer a cleaner and more affordable alternative to traditional kerosene lamps and diesel generators.
The micro-solar industry has created a significant demand for a large workforce, which is particularly beneficial in Nigeria where the young population is in dire need of employment opportunities. Sun King, a leading player in the industry, has experienced rapid growth in Nigeria, expanding from 19 stores to 90 over the past four years. The company has also created over 8,000 jobs for salespeople, known as “energy officers,” who are responsible for selling, installing, servicing and collecting payments for Sun King’s products.
Olamide Ayo-Ogunlade noted that many energy officers begin as satisfied customers, purchasing Sun King’s products and experiencing their benefits firsthand. This positive experience often sparks their interest in becoming entrepreneurs in the energy sector.
Energy officers proactively engage with potential customers by visiting door-to-door, attending markets, churches, and mosques in new areas to promote sales. To ensure their success, they undergo comprehensive training, both in-person and online, on the company’s products and services and are paired with experienced mentors for guidance.
Effective training is crucial, as some people in the region still harbor doubts about the reliability of solar energy, according to Siré Diallo, a specialist in energy and climate finance at the United Nations Development Programme.
Siré Diallo noted that many solar installations in the region have left consumers dissatisfied due to poor installation work or the use of low-quality equipment.
Although there has been improvement in recent years, Siré Diallo emphasized that training programs must continue to expand to address the ongoing need for skilled professionals in the solar industry.
Akin Olukiran, CEO of ABG-CAPS Clean Energy Generation, noted that there is a significant demand for jobs in the solar industry, particularly as his company focuses on installing solar systems for businesses.
The ABG-CAPS Clean Energy Generation receives around 10 to 20 unsolicited job applications daily, with many candidates showing great potential. However, despite his efforts to assist them in finding opportunities, he lamented that there simply aren’t enough job openings available.
According to Alberto Rodríguez Gómez, manager of the Africa energy program at the Rocky Mountain Institute, a planned transition at Nigeria’s largest market is a prime example of a solution that provides reliable electricity, improves air quality, and creates jobs. The market will be powered by a mini-grid combining solar panels and batteries, ensuring continuous operation even during frequent power outages.
Currently, vendors in the market’s cramped stalls have been forced to rely on diesel generators during frequent power outages, as they have had no other alternative.
Alberto Rodríguez Gómez described the market’s current conditions, with diesel generators running, as unbearable: “The air is thick and polluted, extremely noisy, making it difficult to even hold a conversation.” In contrast, he envisioned a future powered by solar energy as a transformative improvement, likening it to “going from hell to heaven.”
The World Bank approved a $750 million program last year to enhance electricity access for 17.5 million Nigerians, focusing on initiatives such as microgrids and small-scale home solar systems. However, significantly more investment is required to address the scale of the challenge.
Animashaun believes that Nigeria is approaching a “come to Jesus moment” on energy there’s pressure on the government to deliver at a time when living costs are rising.
“If you want to avoid social unrest, you have to do something,” he said.