The Nigerian government is advancing solar installation projects, with plans to equip public institutions with large-scale solar systems by 2025, supported by a record N500 billion budget allocation. Spearheaded by the Rural Electrification Agency (REA) and endorsed by President Bola Ahmed Tinubu, this initiative aims to cut governance costs and promote sustainability.
Accelerating Solar Installation with Boosted Capacity and New Policies
The Nigerian government continues to make significant progress in solar energy adoption, with plans to implement large-scale solar installations in public institutions by 2025. This initiative — led by the Rural Electrification Agency (REA) — is part of the government’s strategy to reduce energy costs and promote sustainability.
During the REA’s budget defence in Abuja, Managing Director Abba Aliyu presented a record-breaking N500 billion budget for 2025. This allocation marks the largest in the agency’s history. Aliyu credited President Bola Ahmed Tinubu’s approval for prioritising solar power deployment in the public sector — a move aimed at cutting governance costs.
Aliyu emphasised the importance of the National Public Sector Solarisation Initiative, which has been allocated N100 billion in the 2025 budget. This project will replace diesel-powered generators with solar energy systems in government institutions. Aliyu highlighted the significant expenditure by public institutions on diesel and generators, stating that this initiative would reduce costs while enhancing energy efficiency.
“So, the Federal Government now sees it as a way to reduce the cost of governance and provide REA with funding for use to solarise this public institution. This is part of what we presented to the House Committee,” said Aliyu.
Solar Capacity Reaches New Heights
Nigeria has made notable strides in expanding its solar energy capacity. According to the Africa Solar Industry Association (AFSIA), the country added 63.5 Megawatt peak (MWp) of installed solar capacity in 2024. This brought the total installed capacity to 385.7 MWp by the end of the year. The removal of the fuel subsidy was a major driver behind this growth, thus prompting many Nigerians to adopt solar energy as a cost-effective alternative to diesel and grid power.
AFSIA’s report highlighted an increased interest in solar-plus-storage solutions. These systems provide a reliable and affordable energy source, which helped Nigerians transition from fossil fuels to renewable energy. The growing adoption of solar energy underscores the nation’s potential to become a leader in Africa’s renewable energy sector.
Dr Mustapha Abdullahi, Director General of the Energy Commission of Nigeria (ECN), noted that the government has implemented policies to make solar energy widely accessible and affordable by 2025. The establishment of a solar panel and battery manufacturing plant is one of the key steps in this direction. This facility will lower production costs and improve local access to renewable energy solutions.
The government has also launched a Renewable Energy College to address the skills gap in the energy sector. Dr Abdullahi explained that these efforts aim to reduce the $14 billion spent annually on generators and diesel by households and businesses.
Collaborative Efforts and International Partnerships
Nigeria’s solar energy sector has benefited from international partnerships and investments. One notable development is the partnership between the Nigeria Sovereign Investment Authority (NSIA) and North South Power (NSP). Their joint venture supports a 20 MW solar hydro hybrid project at the Shiroro Hydroelectric Power Plant — part of a larger 300 MW solar programme.
These collaborations demonstrate the potential of solar energy to enhance Nigeria’s energy infrastructure. By integrating solar power into the national grid, these projects improve energy reliability and reduce dependence on fossil fuels.
The focus on solar installations reflects Nigeria’s commitment to sustainable energy development. With the rapid growth of solar capacity, the country is well-positioned to meet its electrification and decarbonisation goals. The government’s initiatives aim to provide clean and reliable energy for millions while reducing costs and environmental impact.
As Nigeria prepares for its ambitious 2025 solar installation projects, the transition to renewable energy marks a pivotal moment for the nation. These efforts will support economic growth, improve energy access, and contribute to a cleaner and greener future.