Nigerians press for solar jobs and electricity, with little success
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In Nigeria, a country blessed with abundant sunlight, hopes for a booming solar industry have struggled to materialize. The government’s plans to develop 14 new solar farms, aimed at significantly boosting the country’s electricity production, were initially seen as a breakthrough for the nation’s energy sector. These solar projects were expected to generate roughly one-fifth of the power provided by the entire national grid on a good day.
Najim Animashaun, managing director of Nova Solar Power, one of the companies involved in the solar projects, recalled the excitement of those early days in 2016: “We were very excited because we were pioneers,” he said. However, that optimism quickly crumbled when the Nigerian government failed to provide essential guarantees to developers. Despite the growing demand for clean energy, Nigeria’s reputation as a risky place to invest made it difficult for large-scale solar projects to get off the ground.
This issue is not isolated to Nigeria alone. Across sub-Saharan Africa, where 83% of the global population without access to electricity resides, the solar potential remains largely untapped. Despite the region’s vast sunlight exposure, the rate of solar installation is shockingly low.
At a panel on Africa’s green transition during this year’s global climate negotiations in Baku, Azerbaijan, UN Secretary-General António Guterres acknowledged the barriers facing African nations, stating, “Many of your countries face sky-high borrowing costs, runaway debt, and inadequate climate finance and investment,” which are preventing the clean energy revolution from taking off. For Nigeria, these barriers are particularly acute.
Nigeria stands as the epicenter of the energy crisis in Africa. With over 220 million people, it has more people living without electricity than any other nation. Shockingly, the number of Nigerians without power has increased over the past decade, despite the country’s rapid population growth. Even those who are connected to the national grid often experience frequent power outages. Millions of Nigerians still rely on wood for cooking and noisy, polluting diesel generators for sporadic electricity.
At the climate talks in Baku, pledges of at least $300 billion annually were made to help developing countries like Nigeria transition from fossil fuels and tackle climate change. However, many developing nations, including Nigeria, criticized this sum as insufficient for the scale of the challenge.
For Nigeria, which heavily depends on oil revenue to fund its government, the energy transition is particularly complicated. The country remains a major petroleum exporter and burns natural gas for most of its electricity. As the government works to diversify its economy, reduce poverty, and meet its 2060 net-zero goals, renewable projects such as solar and hydropower will play a crucial role. Yet, the financial and logistical hurdles remain daunting.
Animashaun of Nova Solar Power described the initial optimism when Nigeria opened its electricity sector to attract private investment, and developers saw an influx of projects. “There was a proliferation of projects, and that created competition among us,” he recalled. But high interest rates, a volatile currency, and a lack of essential financial guarantees from the government and international banks meant that many projects were halted. He knew the deal was doomed when the government proposed paying in local currency instead of dollars, as Nigeria’s currency had lost 90% of its value over the years.
While large-scale solar projects faltered, smaller solar solutions have gained traction. The demand for micro-solar systems, which power basic needs like lighting and phone charging, tripled from 2016 to 2023, according to industry data. These smaller solar systems, often replacing kerosene lamps or diesel generators, have helped reduce reliance on dirty fuels. The micro-solar market has also created a significant number of jobs, offering employment to Nigeria’s youthful population.
Companies like Sun King, a major seller of micro-solar products, employ thousands of salespeople, known as “energy officers,” who not only sell and install solar devices but also help educate customers and build entrepreneurship in the energy space. However, despite the growing demand for these products, the solar sector struggles to meet the country’s needs. Akin Olukiran, CEO of ABG-CAPS Clean Energy Generation, noted that he receives an overwhelming number of job applications but cannot provide positions due to a lack of opportunities.
In response, organizations like the Rocky Mountain Institute are exploring solutions such as solar-powered minigrids, which can provide reliable electricity while improving air quality and reducing noise from diesel generators. For example, a solar minigrid installation at a major market in Nigeria’s capital promises to offer reliable power and transform the experience for vendors currently relying on diesel power.
The World Bank has committed $750 million to improve electricity access for 17.5 million Nigerians, supporting microgrids and home solar systems. But much more is needed to tackle Nigeria’s energy crisis and provide sustainable, affordable power to its population.
Animashaun believes Nigeria is approaching a critical moment in its energy transition. “If you want to avoid social unrest, you have to do something,” he warned. With the pressure on the government to deliver results amidst rising living costs, Nigeria’s future energy landscape hinges on overcoming the obstacles to solar and renewable energy development. The need for investment, innovation, and policy support is more urgent than ever as Nigeria confronts the dual challenges of energy poverty and climate change.
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