In the largest economy in Africa, a silent energy revolution is quietly unfolding.

Data shows that Nigeria suffers economic losses of up to $26 billion (approximately 188 billion yuan) each year due to power shortages. Businesses spend about $22 billion annually on off-grid fuel to mitigate the impact of unstable electricity.

Even more shocking is that in this most populous country in Africa, about 90 million people cannot access the national power grid, a figure that ranks first globally.

The serious imbalance in the power grid system, insufficient financial investment, and aging infrastructure have intertwined, making it difficult for the entire power supply system to support the country's development needs.

Nigeria's predicament is particularly lamentable, as the country possesses abundant energy resources. Nigeria ranks seventh in the world for natural gas reserves, with an average annual solar radiation of about 1700 kilowatt-hours per square meter, making solar energy resources extremely rich.

However, the reality is that Nigeria's power supply has never exceeded 6,000 megawatts, and in the face of an actual demand from a population of over 230 million, this number is clearly far from sufficient.

In comparison, South Africa's grid capacity reaches 48,000 megawatts, while Bangladesh, a country with a relatively small population and land area, has also achieved a power generation capacity of 16,000 megawatts.

Facing the limitations of the traditional power grid, Nigeria has begun to turn its attention to solar energy, a clean and renewable source of energy. Nigeria has set a goal for renewable energy to account for 10% of energy consumption by 2025.

In December 2022, Nigeria launched the National Photovoltaic Support Program (SHS), aimed at providing 5 million solar home systems and small grids to electricity-deficient communities, expected to benefit 25 million people.

Even more exciting is that Nigeria's off-grid solar market has achieved an average annual growth rate of 22% over the past five years, making it one of the fastest-growing countries in Africa.

The international community has also extended a helping hand. The World Bank and the African Development Bank have respectively provided $550 million and $200 million in funding support for the construction of off-grid systems and the improvement of grid systems.

In March 2025, the Rural Electrification Agency (REA) of Nigeria signed a cooperation agreement with Oando Clean Energy to jointly promote the construction project of a 1.2 GW solar panel assembly facility.

This project is Africa's first solar module assembly plant equipped with a recycling production line, which will receive funding support from the World Bank and the Japan International Cooperation Agency.

The Nigerian government has begun to realize that one of the major advantages of renewable energy is its ability to develop in a distributed manner, and that private investment in the market should be encouraged.

The government allows 36 states across the country to generate and transmit electricity independently. Commercial center states like Lagos and five other states have begun to develop independent electricity markets.

The government has also collaborated with the World Bank to build 1,000 micro solar power grids to expand electricity supply in rural areas.

Despite the promising outlook, Nigeria's solar energy development still faces challenges. A shortage of technology and funding is one of the main difficulties faced by solar power generation in Nigeria.

In addition, although the government has approved a $122 billion power development plan aimed at transforming Nigeria's power sector over 21 years (2024-2045), the scale of the investment has raised questions about the financing mechanisms and execution.

Nigeria's infrastructure project history has been marred by delays and mismanagement, thus requiring strong oversight.

By 2024, Nigeria's newly added photovoltaic installed capacity is expected to reach 1.6GW. If the fossil energy subsidy policy can be maintained, Nigeria's cumulative photovoltaic installed capacity may reach 21.5GW by 2030.

Experts point out that once the power supply issue is resolved, development in all sectors will be driven forward. Renewable energy is not only the best way to solve Nigeria's power crisis but also the key to unlocking the unlimited potential of the entire country's economic and industrial development.