Nigeria attracted $114 million in off-grid solar investment in 2025, making it Africa’s largest recipient of disclosed financing for the sector, according to GOGLA, the global association for the off-grid solar industry. The investment formed part of $315 million raised globally by off-grid solar companies during the year, reflecting continued investor confidence in Nigeria’s renewable energy market and efforts to expand electricity access.
The inflow supports government initiatives to bridge Nigeria’s electricity deficit through mini-grids and standalone solar systems. According to the Rural Electrification Agency (REA), its programmes have delivered more than 2.8 million electricity connections, providing access to an estimated 14 million Nigerians, while over 1,000 mini-grids are under development.
Despite the funding momentum, concerns remain over the long-term sustainability of some solar projects. Energy experts note that many rural communities continue to face unreliable electricity due to poorly maintained or underperforming installations, particularly older donor- and government-funded systems.
One frequently cited academic study of a solar installation in Oke-Agunla, Ondo State, found that the system operated at only 14.52% of its installed capacity because of poor maintenance, equipment deterioration, and limited technical expertise. Although the research dates back to 2012, analysts say it highlights persistent challenges in maintaining rural energy infrastructure.
Battery replacement costs also remain a significant barrier to sustainability. While lithium iron phosphate (LiFePO₄) batteries require higher upfront investment than lead-acid alternatives, studies indicate they generally offer lower lifetime maintenance and replacement costs.
Regulators have also raised concerns about installation quality. The Nigerian Electricity Management Services Agency (NEMSA) has issued safety guidelines under the Electricity Act 2023, requiring certified contractors to carry out solar photovoltaic installations and comply with technical standards, citing risks associated with poor workmanship and substandard materials.
Meanwhile, the House of Representatives Committee on Renewable Energy is investigating publicly funded renewable energy projects executed between 2015 and 2024, including financing from the World Bank, African Development Bank, the European Union, Germany and South Korea. Lawmakers have raised concerns over the quality of some completed projects, including reports of malfunctioning solar streetlights, though these remain allegations under investigation.
REA Managing Director Abba Aliyu has denied claims that the agency’s projects have been abandoned, while acknowledging that some projects have experienced implementation delays.
Industry stakeholders argue that Nigeria’s next phase of off-grid expansion should focus on project quality, stronger maintenance systems, independent inspections, and greater accountability to ensure investments translate into reliable long-term electricity access for underserved communities.
