Nigeria seeks to capture bigger share of trillion-dollar clean energy market

Nigeria is moving to position itself as a manufacturing and investment hub for renewable energy to capture a larger share of the $2 trillion annual global clean-power market. While the country attracted $100 billion in energy investment over the last decade, over 90 percent of that capital was directed toward oil and gas, leaving the renewable sector underfunded. This strategic pivot aims to address a domestic crisis where 90 million citizens lack reliable electricity while building a sustainable industrial base for the future.

At the Global Initiative for Food Security and Environmental Protection (GIFSEP) Solar Forum in Lagos, Olamide Fagbuji, a senior special assistant to the Nigerian president, emphasized that the nation must build a domestic industrial base for manufacturing, financing, and recycling renewable hardware. Fagbuji noted that while the global clean-energy market attracts over $2 trillion annually—a figure the International Energy Agency suggests must rise to $4.5 trillion by 2030—Africa currently receives only 2 to 3 percent of that capital. To mirror the success of nations like China and India, Nigeria intends to transition from simply installing imported solar panels to becoming a regional producer and exporter of climate technologies.

The scale of the challenge is underscored by data from Daniel Awolaja of the Africa Energy Tracker, who revealed that 92 percent of Nigeria’s $100 billion in disclosed energy investments over the past decade was allocated to the oil and gas sector. This has left renewables and storage chronically underfunded, resulting in a national grid that delivers only 5 gigawatts of power despite having 14 gigawatts of installed capacity. Consequently, nearly 90 million Nigerians lack reliable electricity, forcing a reliance on millions of private diesel and petrol generators that currently provide several times more electricity than the official grid.

To bridge this gap, Nigeria is leveraging the Electricity Act 2023, which decentralized the power sector and allowed states to regulate their own markets for the first time. This legislative shift has already helped secure $1.3 billion in investment commitments through initiatives like the Nigeria Electrification Project and the Distributed Access through Renewable Energy Scale-up program. On the industrial front, lithium battery plants have been commissioned in Zamfara and Nasarawa states, while the National Agency for Science and Engineering Infrastructure (NASENI) is developing locally produced solar panels. Experts at the forum cautioned against immediate import bans, suggesting instead that the government provide incentives for local assembly to ensure energy security during the transition.

The lack of reliable clean energy also has severe implications for Nigeria’s agricultural sector and food security. Fagbuji highlighted that the country loses between 30 million and 40 million metric tons of food annually—valued at up to N5 trillion—primarily due to a lack of power for cold storage, irrigation, and processing. By aligning renewable energy initiatives under a common framework, officials hope to improve the country's collective bargaining power with international investors. Chris Kiff of the Secure Energy Project urged stakeholders to coordinate existing efforts to ensure that clean energy development directly supports vital infrastructure and economic stability.