How Nigerians are coping with heat waves amid crippling power outages

Nigerians are currently facing severe heat stress. People across the West African country are complaining about the unusually hot weather. The extreme heat has caused widespread distress, with many social media users reporting that it is affecting their health and reducing their productivity.

According to the Nigerian Meteorological Agency (NiMet), the heat stress is occurring because March falls in Nigeria’s peak transitional heat window — after the Harmattan dry season ends but before the rainy season begins. The heat is affecting people in many parts of the country, but it is more pronounced in some areas. The most affected areas are in the north-central, north-west, and north-east regions, as well as inland areas of the southern states.

Impact of the heat stress on Nigerians

Global Voices spoke to some Nigerians to understand the impact of the heat stress on their communities and how it is affecting their work and everyday life.

Onyekachi Ogbu is an Igbo-language consultant and AI data specialist. He lives in Enugu, Nigeria. He explains how the heat stress is affecting his productivity and everyday life:

"It makes it difficult to work, especially for a person like me who works from home. We don't use the regular power supply in my house. We rely on solar power and a power generator for power, but the solar power does not last for 24 hours. So, we majorly use it when the sun is shining from peak from 9 am to 12 pm or 1 pm. We use it mostly at night, and we can not use it to power fans because it is incapable of powering fans. So, we mostly rely on natural air entering the house from the windows. It's only when we are on the power generating set that we can use the ceiling fans. Because of the heat, it is hard to work indoors. Sometimes, I would have to work on my laptop outside to get fresh air as I work.

The heat is also causing distraction. Imagine having a virtual meeting, and you have to be fully clothed, and you are sweating heavily as the meeting is ongoing. It will cause distraction because you won’t be comfortable because you can’t take off your clothes while having virtual meetings.

What I rely on to work easily these days is to use hand fans or step outside of the house. On some occasions, I buy fuel for the generator, but I cannot afford to do this every time because fuel price is high.

I believe everyone is feeling the heat stress, but many people in rural areas have limited awareness about it. That's why we need to create awareness for them to take safety precautions such as staying hydrated and being well-aerated."

Adewale Afolabi, a commercial rider in Osogbo, Osun State, Nigeria, said the heat is unbearable:

"The heat is too much and it is affecting my work, but I must continue working in order to take care of myself and my family."

Muh’d Tasi’u Jibril, a linguist living in Bauchi, narrates how the heat is affecting people living in the Northern part of the country:

"The heat has been unbearable for the last two weeks. As for a remote worker like me, I cannot work around 11pm to 3pm due to the unbearable heat. The heat was too much during the last ten days of Ramadan. It was so hot that people suffering from ulcer had to break their fast.

Normally, over here we used to experience the harmattan season during the months December, January and February. But this year there is nothing like that.

The heat did not affect my daily work since I work remotely. It is just the epileptic power supply that is making me feel the heat because you won't be able to use ACs and fans. I hardly sleep at night. I only sleep when I am able to find an alternative source of power to power fans and ACs. Also, it is difficult to get cold water to drink in this period because there is no electricity. What we used to do to cope with the heat stress at night is sleep outdoors, but we can no longer do that due to insecurity. It's only those who can afford solar panels that can power fans or AC that are not affected by the heat stress."


Nigeria’s power crisis worsens the situation

The worsening state of power supply in the country has made the situation worse. The National power grid has collapsed many times in 2026. This has led to nationwide blackouts, which have made it difficult for many citizens to cope with the heat stress. Due to the power cut, many Nigerians cannot use electrical appliances such as fans and ACs that could provide comfort. On March 24, the Minister of Power, Adebayo Adelabu, apologized to Nigerians for the frequent power outages.

Adesewa Popoola, an entrepreneur in Lagos, narrated how the heat stress is affecting Lagosians and how the crippling power supply has worsened the situation:

"I live in a neighbourhood where there is not much space between houses, and because there is no adequate ventilation in the houses in the area. I have noticed a significant change in the temperature pattern over the years. December is supposed to be the Harmattan season, when it might be hot during the day and cold during the evenings. But there was no Harmattan in Lagos throughout December and January. The temperature is always hot throughout the day. The heat has affected my work and daily life. There are times I need to go out and do some things. Once the time is past 10a.m. I won’t be able to go out, because of the extreme heat. I only go out when I am able to get a ride to my destinations. On many occasions, I have to wait till evenings when the heat has reduced before going out If I am unable to get a ride.

If I have an appointment, I have to be mentally prepared for coping with the heat. It is also affecting the way I dress. I am unable to wear some of my clothes because of the heat.

In order to cope with the heat, I stay indoors most times, bath as many times as I can, and drink water regularly.

About awareness, I think most people are not aware of the risks of the heat.

We all know the current situation of electricity in Nigeria. Due to epileptic nature of the power supply, it is difficult to cope with the heat, especially during nighttime when the heat is intense. Since there is no power, many people cannot turn on their fans. To make the matter worse, a lot of people cannot afford to buy fuel because of the hike in the price of fuel. It would have been easier to cope with the heat stress if the power supply is stable."

Cause of the heat wave and recommendations

Researchers have attributed the cause of the heat stress to climate change.

Earlier in March, the Nigerian Meteorological Agency (NIMET) issued a nationwide alert, warning the general public about the health risks the heat stress may pose in some parts of the country. The agency also warned the public to take necessary precautions to reduce their exposure to the heat. In the X post, NIMET encouraged Nigerians to drink plenty of water to stay hydrated, stay in well-ventilated or air-conditioned rooms, wear light, breathable clothing, and wear hats, sunshades, and sunscreens. It advised parents to keep infants cool and hydrated, and never leave children in a closed, parked vehicle.

People are hoping the rainy season starts soon to ease heat stress.

By Abdulrosheed Fadipe, Global Voices

Nigeria firm unveils Africa's largest EV charging hub

 

Nigeria is making an ambitious push into the future of transportation with the unveiling of what is being described as Africa’s largest electric vehicle charging hub — a bold signal that the continent’s biggest economy wants a serious seat at the global EV table.

The project, launched in Abuja, is more than just another charging station. It represents a growing movement toward cleaner mobility, local EV assembly, and reduced dependence on petrol in a country long defined by oil production. Officials say the initiative supports Nigeria’s broader automotive transformation plans, which include increasing the share of electric vehicles produced locally.

At the center of the rollout is a massive charging infrastructure designed to tackle one of Africa’s biggest EV problems: range anxiety and the lack of reliable charging networks. Industry stakeholders have repeatedly warned that infrastructure — not vehicle availability — could determine whether electric mobility succeeds in Nigeria. 

The move comes as Nigerian companies rapidly expand into the EV space. Firms are introducing locally assembled electric buses, delivery vans, and passenger vehicles while also experimenting with fast-charging hubs and renewable-powered systems. Some new charging sites in Lagos can reportedly serve multiple vehicles simultaneously using dual-gun DC fast chargers capable of reaching 20–80% charge in under an hour. 

But the excitement is being met with skepticism as well.

Across online discussions and industry forums, many Nigerians point to the country’s unstable electricity grid as the elephant in the room. Several commenters argue that EV adoption cannot scale without major improvements in power generation and distribution. Others believe solar-powered charging networks and decentralized mini-grids could become the workaround Nigeria needs. 

Despite the challenges, momentum is clearly building. Rising fuel prices, government pressure for cleaner transportation, and growing investment in local manufacturing are pushing electric mobility from concept to reality. Companies entering the market say they are not simply selling vehicles — they are trying to build an entire ecosystem around charging, battery support, and renewable energy integration.

Whether Nigeria can truly become a continental EV leader will likely depend on one critical question: can the country build the infrastructure fast enough to support the vision?

Business Day

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Nigeria's commercial capital Lagos bets on local power as grid falters

Lagos is betting ‌that Nigeria's chronic electricity shortages can be addressed outside the national grid, scaling up state-backed power generation and distribution after securing 400 megawatts of new supply, the state's energy commissioner said.

Africa’s largest city is pressing ahead ​under reforms that allow sub-national governments to regulate power as Nigeria’s grid struggles. At least ​22 other states are also setting up electricity markets to reduce reliance ⁠on the centralised system in Abuja, according to data from the power regulator.

"We are seeking ​to move beyond a single point of failure," Lagos Commissioner for Energy and Mineral Resources Biodun ​Ogunleye said at a conference organised by BusinessDay newspaper on Tuesday.

Nigeria's grid delivers about 3,000 MW on a good day, far short of estimated demand of more than 30,000 MW, according to government power plans, forcing businesses ​and households to rely on diesel generators.

Lagos activated its electricity regulatory regime in June 2025 ​and transferred oversight of intrastate electricity matters from the Nigerian Electricity Regulatory Commission (NERC) to the Lagos State Electricity ‌Regulatory ⁠Commission. By the end of the year, it had assumed full regulatory control of its electricity market, becoming the first Nigerian state to do so, officials said.

In a circular last year, NERC said state regulators would oversee intrastate electricity matters, while it would retain responsibility for interstate ​electricity transactions, national grid ​operations and industry standards.

Lagos ⁠has signed power purchase agreements with Fenchurch Power, Mainland Power and Viathan Engineering Limited to supply up to 400 MW to public facilities over ​three years.

"These are not business-as-usual PPAs," Ogunleye said. "They represent a fundamental ​shift in ⁠how Lagos procures and pays for power."

Lagos has scrapped "take-or-pay" and "deemed energy" provisions, which required payments even when power was not delivered, and will instead pay only for metered electricity supplied, officials said.

Analysts said ⁠state-level power ​markets could improve reliability but would not remove constraints ​including gas supply, foreign exchange exposure, affordability, transmission bottlenecks and weak technical capacity.

"Capital is available, but revenue assurance is a ​problem," said Bola Adigun, a partner at Deloitte Nigeria.

By Isaac Anyaogu, Reuters

Related story: Blackouts drive more Nigerians off-grid as solar demand booms

Blackouts drive more Nigerians off-grid as solar demand booms

When the lights went out for the third time in a week at his Lagos textile factory, Emeka Okafor did not wait for the utility company to restore power. He called a solar installer instead.

“Diesel was eating us alive. The grid gives us maybe five hours a day if we’re lucky,” said Okafor, whose factory now runs almost entirely on a rooftop solar array paired with battery storage. “We haven’t looked back.”

His story is being replicated across Nigeria at a scale that is fundamentally redrawing the country’s energy map. Nigeria installed 803 megawatts of new solar capacity in 2025, a year-on-year surge of 141 percent, making it Africa’s second-largest solar market.

The driving force is not government ambition or climate policy; it is the chronic, grinding failure of the national grid.

Over the past decade, Nigeria’s power grid has suffered nearly 140 recorded malfunctions, with some areas receiving reliable electricity for only five to six hours per day. In the first two months of 2026 alone, the national grid collapsed twice. For households and businesses running Africa’s largest economy, patience has finally run out.

Off-grid installations, private mini-grids, solar home systems, and commercial rooftop arrays, account for roughly 1.15 gigawatts, or about 96 percent of Nigeria’s total installed solar capacity.

The Nigeria renewable energy and solar off-grid market is now valued at approximately $2.5 billion, driven by persistent grid unreliability, declining costs of solar and storage technologies, and surging private sector investment.

Key urban centers are leading the charge. Lagos, as the country’s commercial hub, has seen a surge in distributed solar installations, while Abuja’s policy environment and government-backed programs have fostered investment in renewable energy.

Battery storage is scaling even faster than the panels themselves. Installed battery capacity increased from around 10 megawatt-hours to 40.6 megawatt-hours in a single year, a rise of about 305 percent. Analysts note that those figures are likely understated because most projects are behind the meter and go untracked in official data.
Economics Tipping Against Diesel

The financial calculus has shifted decisively. Commercial and industrial users who adopt on-site renewables are achieving savings of 20 to 30 percent compared to diesel self-generation. With diesel costs running above $0.30 per kilowatt-hour, manufacturers in Lagos, Kano, and Port Harcourt are locking in 20-year power purchase agreements at fixed tariffs well below that threshold.

Nigeria’s extensive solar resource, delivering 4.5 to 6.5 kilowatt-hours per square meter per day, produces capacity factors 40 to 60 percent higher than those of many European sites, amplifying the economic case. Global module price declines have further compressed costs, bringing grid-parity economics to Nigeria’s sun-rich northern states.

Pay-as-you-go financing models are extending solar access to smaller firms and households, with payback periods now as short as three to five years.

Legislation is beginning to align with market realities. The 2023 Electricity Act decentralises market oversight and allows states to define their own feed-in tariffs tailored to local conditions, while seven-year tax holidays tilt project economics further in favor of renewables.

Nigeria’s renewable energy market is projected to grow from 3.13 gigawatts in 2024 to 5.01 gigawatts by 2029, at a compound annual growth rate of nearly 10 percent. More bullish forecasts place total installed capacity at 14.07 gigawatts by 2031, implying a compounded annual growth rate of more than 25 percent.

Nigeria already accounts for nearly 80 percent of West Africa’s solar additions. Under base-case projections, the wider region could add a cumulative 4.9 gigawatts between 2026 and 2029, cementing West Africa’s emergence as a major frontier solar market.

The rush off-grid carries a paradox. As wealthier households and businesses defect, the utility base that might fund grid repairs shrinks further, accelerating the very cycle of decline that drove them away in the first place.

The Nigerian government has announced an annual investment of $600 million in electricity subsidies between 2025 and 2027, aimed at bridging the gap between cost-reflective prices and regulated tariffs. Whether that is enough to reverse decades of underinvestment remains deeply uncertain.

By Oladehinde Oladipo, Business Day 

Related story: Gas-rich Nigeria faces blackouts amid five-year high flaring

Gas-rich Nigeria faces blackouts amid five-year high flaring

Nigeria holds one of the world’s largest untapped gas endowments, yet millions of its citizens continue to grapple with chronic electricity shortages led by grid collapses, load shedding or disturbances.

Despite sitting on an estimated 600 trillion cubic feet (tcf) of unproven gas reserves, the country has recorded persistent power outages in recent weeks, largely driven by gas supply shortfalls to generation companies (GenCos).

Major cities across Nigeria have experienced worse-than-usual electricity disruptions since last week, as power outages grow more frequent and prolonged.

Data from the Nigerian Oil Spill Monitor, corroborated by the National Oil Spill Detection and Response Agency (NOSDRA), paints a less encouraging picture of gas utilisation efforts in the country.

According to the data, oil and gas companies flared an estimated 323.2 million standard cubic feet (scf) of gas in 2025, highlighting persistent inefficiencies in Nigeria’s upstream operations and ongoing challenges in fully commercialising associated gas resources.

Flaring figures stood at 349.3 million scf in 2020. Since then, Nigeria has recorded volatility, recording 264.6 in 2021, 230.1 million scf in 2022, 278.3 million scf in 2023, and 301.3 million scf in 2024.

“Are we truly prepared for significant gas uptake and usage, especially considering the ‘Decade of Gas’ initiative from 2020 to 2030, with 40 percent of this period already elapsed and little tangible progress in flare reduction,” asked Oyinkepreye Orodu, a subface and energy researcher.

The rise in gas flaring comes at a time when Nigerian residents and local manufacturers are grappling with soaring energy costs, persistent gas shortages, and erratic power supply– factors that have forced many firms to scale down operations or shut down entirely.

Many gas-fired power plants are also operating below capacity due to fuel shortages, worsening electricity shortages across the country.

The Transmission Company of Nigeria confirmed that reduced gas supply has significantly cut electricity generation, leaving distribution companies with less power to deliver to homes and factories.

“With thermal plants forming the dominant share of Nigeria’s generation mix, any disruption in gas supply directly impacts grid output,” the Nigerian Independent System Operator (NISO) said.

Thermal plants, which account for the bulk of Nigeria’s generation mix, require an estimated 1,629.75 million standard cubic feet (MMSCF) of gas per day to operate at optimal capacity.

However, as of February 23, 2026, actual gas supply stood at approximately 692 MMSCF per day, representing less than 43 percent of daily requirements.

Industry analysts have warned that without stronger regulatory enforcement and better investment incentives, oil companies operating in Nigeria will continue to flare gas as a cheaper alternative to processing or reinjecting it.

Jide Pratt, country manager of TradeGrid, expressed concern over the persistent rise in gas flaring despite several government interventions aimed at curbing the practice.

According to him, weak penalties and the high cost of building gas infrastructure remain the primary reasons companies continue to flare associated gas.

Data from the NOSDRA showed that oil and gas companies incurred $646.3 million in penalties for gas flaring in 2025.

Pratt, who also serves as chief operating officer of AIONA, noted that incentives such as those introduced under Executive Order 40, which targets investments in non-associated gas, could help drive progress in reducing flaring.

“Fines for flaring should be increased to make reinjection more attractive,” he added. “Most companies take the cheaper option of paying fines rather than investing in extraction and piping.”

Nigeria has introduced several legislative measures to curb gas flaring since 1969. Since 1984, it has been illegal to flare gas without written approval from the Minister of Petroleum Resources.

Under current regulations, companies producing more than 10,000 barrels per day pay a penalty of $2 per 1,000 standard cubic feet (scf) of gas flared, while those producing below that threshold pay $0.50 per 1,000 scf.

Elijah Wisdom, chief executive officer and founder of Creek Transitway Ltd, said the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should allow international oil companies to choose their own flare gas offtakers rather than having them assigned by regulators.

Wisdom also downplayed concerns over gas pricing, arguing that the key challenge lies in infrastructure and cost-reflective tariffs. Gas prices in the United States vary widely depending on location. The key issue is infrastructure and cost-reflective tariffs, he said.

He added that recent adjustments under the Domestic Gas Delivery Obligation (DGDO) have made pricing more reasonable, but outstanding debts within the sector, including obligations owed by NNPC Limited to the Niger Delta Power Holding Company, continue to affect operations across the gas-to-power value chain.

New grid asset company proposed to fix Nigeria’s power Bottleneck

President Bola Tinubu initiated plans to establish a Grid Asset Management Company (GAMCO) as part of efforts to address persistent challenges in Nigeria’s power sector, particularly within the transmission segment.

He disclosed this while briefing journalists at the State House in Abuja after a meeting of the Federal Executive Council (FEC) presided over by the president.

Mohammed Idris, minister of Information and National Orientation, said the council approved the setting up of a panel to drive the initiative following a memorandum presented by Tinubu for deliberation.

According to him, the proposal is aimed at strengthening the transmission component of Nigeria’s electricity value chain, which the government considers the most critical bottleneck to achieving stable and reliable power supply across the country.

He noted that following the deregulation of the power sector, the industry was unbundled into three key segments, generation, transmission and distribution, but the transmission arm has remained the weakest link.

“The proposed Grid Asset Management Company will be responsible for managing and strengthening the national electricity grid to improve efficiency and enhance power delivery nationwide,” Idris said.

To advance the plan, the FEC approved the establishment of an inter-ministerial committee tasked with developing the operational framework for the proposed company.

By Abubakar Ibrahim, Business Day

Aliko Dangote calls for emergency power summit as blackouts threaten Nigeria’s $500bn economy

 

Speaking at the national launch of the National Industrial Policy 2025 in Abuja, Dangote called for an urgent one or two-day national retreat dedicated solely to resolving the country’s long-running power crisis.

The event, themed “From Policy to Productivity: Implementing Nigeria’s Industrial Future”, brought together senior government officials, development partners, and business leaders. President Bola Tinubu was represented by Vice President Kashim Shettima.

“One of the things that I want to advise Your Excellency… is to call a national forum where we will resolve the issues of power,” Dangote said.

“Because without power, there is no way in any country you can create growth or create jobs. So, power means growth. No power, no growth.”

His remarks come at a delicate moment for Africa’s largest economy, valued at roughly $500 billion based on current World Bank estimates. Nigeria is seeking to reposition itself as a manufacturing hub under its new industrial policy, yet erratic electricity supply continues to undermine productivity and investor confidence.

A recent five-day electricity supply disruption across parts of the country underscored the urgency of Dangote’s intervention. Between 12 and 15 February 2026, several power plants experienced gas constraints after maintenance work by Seplat Energy temporarily reduced supply, leading to nationwide generation shortfalls and load shedding.

Manufacturers say such episodes are not isolated incidents but part of a persistent structural problem. Many factories now rely heavily on diesel generators to remain operational, sharply raising production costs. Dangote, whose conglomerate spans cement, fertiliser, and oil refining, acknowledged the irony.

“I would have loved to sell more diesel, but that is not the right way. The right way is to make sure there is power,” he said, noting that some businesses spend more on generating electricity than on producing goods.

Beyond electricity, Dangote argued that Nigeria must also strengthen protection for domestic industries if it hopes to industrialise at scale. While he praised the government’s policy incentives as “very good”, he insisted that incentives alone are not enough.

“If you give us zero-interest loans, free land and power, if there is no protection, there is no way any industry will thrive here. Importation of anything is importation of poverty and exportation of jobs,” he said.

His comments reflect broader concerns within Nigeria’s organised private sector about the impact of heavy import dependence, high interest rates, and infrastructure deficits. Stakeholders warn that cheap imports and dumping, combined with local structural constraints, are squeezing domestic manufacturers and contributing to inflationary pressures.

Dangote also highlighted the scale of private sector influence in Nigeria’s economy. According to him, the private sector accounts for nearly 90 per cent of gross domestic product, compared with about 10 per cent for government activity.

“Nigeria is the only country in Africa where the private sector is bigger than the government,” he said, urging closer collaboration between policymakers and business leaders.

At the same time, he stressed that businesses must fulfil their obligations. “When we do our business, we must pay our taxes. It is a joint venture. The government is the major shareholder in every business,” he said, noting that tax revenues from large industrial operations ultimately strengthen public finances.

Dangote expressed cautious optimism about recent economic reforms, pointing to improved currency stability and renewed investor interest. He suggested that reducing import dependence and expanding local manufacturing would further strengthen the naira and generate employment.

Experts say the success of the National Industrial Policy 2025 hinges on resolving the electricity bottleneck. Without reliable power, ambitions to boost exports, reduce imports, and position Nigeria as a manufacturing gateway to African markets may remain out of reach.

For Dangote, the message was clear and urgent: fix the power sector first. Only then can policy translate into productivity, and ambition into sustainable growth.

By Segun Adeyemi, Business Insider Africa

Related story: Nigeria turns to China for a new $2 billion loan to rebuild ailing power grid

Nigeria reveals $17.8 million electricity debt owed by its neighbours

The Nigerian Electricity Regulatory Commission (NERC), in its Third Quarter 2025 report, disclosed that Togo, Niger, and Benin owe Nigeria $17.8 million (N25 billion).

The report showed that the Market Operator invoiced a total of $18.69 million for electricity provided over the review period to the three countries, but only remitted $7.125 million, leaving an outstanding balance of $11.56 million.

Furthermore, international bilateral clients had legacy invoices totaling $14.7 million, of which they paid $7.84 million, leaving a debt of $6.23 million.

As reported by the Punch Newspaper, the debt accumulated between the previous quarters and Q3 2025 was $17.8 million (N25.36 billion).

The regulator identified the international offtakers as Compagnie Énergie Électrique du Togo, Société Béninoise d'Énergie Électrique of the Republic of Benin, and Société Nigérienne d'Électricité of the Republic of Niger.

The regulatory body reported that the three foreign bilateral clients that bought electricity from the grid-connected GenCos paid a total of $7.125 million toward the $18.69 million invoice that the Market Operator sent them for services provided in 2025/Q3.

A majority of the invoices remained outstanding at the close of the quarter, per to the report, which revealed that the remittance level reflected a 38.09 percent remittance performance.

“The three international bilateral customers being supplied by GenCos in the NESI made a payment of $7.12m against the cumulative invoice of $18.69m issued by the MO for services rendered in 2025/Q3, translating to a remittance performance of 38.09 per cent,” the NERC stated.

“The domestic bilateral customers made a cumulative payment of N3.19bn against the invoice of N3.64bn issued to them by the MO for services rendered in 2025/Q3, translating to 87.61 per cent remittance performance,” it added.

The NERC went on to disclose that, from a total invoice of N400.48 billion, Nigeria's 11 energy distribution companies sent a sum totaling N381.29 billion to the Nigerian Bulk Energy Trading Plc and the Market Operator in Q3 2025.

This reflects a remittance performance of 95.21%.

By Chinedu Okafor, Business Insider Africa

Video - Nigeria’s push for electric motorcycles faces major hurdles

Electric motorcycles are slowly taking off in Nigeria, but high battery costs hold back buyers. Experts say government incentives, tax breaks, and better charging infrastructure are essential for the shift to succeed. Without reliable power and affordable batteries, Nigeria’s EV transition risks stalling.

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Nigeria turns to China for a new $2 billion loan to rebuild ailing power grid

After decades of unreliable electricity and frequent blackouts, Nigeria is seeking a $2 billion lifeline to rebuild its ailing power grid and restore confidence in its industrial energy supply.

Minister of Power, Mr. Adebayo Adelabu, confirmed the development during an economic summit in Abuja, noting that the new grid will connect Nigeria’s eastern and western regions, where a significant proportion of industrial activities are concentrated.

“It is part of the government’s plan to decentralise power generation and encourage large-scale commercial users, who exited the national grid due to its unreliability, to return,” Adelabu stated.

A Persistent Power Deficit

Nigeria’s energy crisis remains one of the most pressing constraints on its economic growth. Despite an installed generation capacity of about 13 gigawatts, the national grid delivers barely 4 gigawatts to more than 200 million citizens.

Frequent blackouts and outdated infrastructure have pushed many factories, businesses, and households to rely on self-generated power from diesel and gas generators.

The resulting operational costs have constrained productivity, raised inflationary pressures, and diminished competitiveness in the manufacturing sector.

By contrast, South Africa, with about a quarter of Nigeria’s population, has an installed generation capacity of roughly 70 gigawatts, underscoring the vast energy gap that continues to constrain Nigeria’s industrial competitiveness.

However, the proposed super grid is expected to enhance transmission efficiency, improve reliability, and ensure greater power delivery to key industrial zones. Minister Adelabu confirmed that the Federal Executive Council has already approved the project’s financing framework.

Expanding China’s Energy Footprint in Africa

The $2 billion super grid loan forms part of President Bola Tinubu’s broader economic and energy reform strategy designed to attract foreign investment and reposition Nigeria as a key player in Africa’s power market.

It also reinforces China’s growing role in financing major infrastructure projects across the continent.

Beyond the EximBank talks, Nigeria has secured $1.1 billion from the African Development Bank (AfDB) to expand electricity access, $70 million from the International Finance Corporation (IFC) for mini-grid development, and $328.8 million from Chinese firm CMEC to upgrade transmission infrastructure.

In October 2023, the government also signed a $2 billion Memorandum of Understanding (MoU) with three Chinese firms to invest in power generation and digital economy projects. In addition, Nigeria and China renewed a $2 billion currency-swap agreement in late 2024 to strengthen bilateral trade and investment ties.

Adelabu’s team confirmed to Bloomberg that discussions with China’s EximBank are ongoing and “progressing positively.”

Tariff Reforms and Financial Stability

The minister further revealed that recent tariff adjustments for urban consumers have improved the financial sustainability of the electricity sector. Industry revenues increased by 70 percent in 2024 and are projected to rise by a further 41 percent this year, reaching ₦2.4 trillion ($1.6 billion).

“These changes will enable power firms to reinvest in infrastructure, expand access, and improve reliability,” Adelabu said.

The tariff reforms, though controversial, are part of the government’s effort to create a cost-reflective pricing system capable of attracting long-term investment.


Powering Africa’s Industrial Ambitions

The “super grid” initiative aligns with President Tinubu’s wider economic reforms, including the removal of fuel subsidies, overhaul of tax laws, and improved security in oil-producing regions to boost crude output.

Since assuming office in 2023, Tinubu has placed energy reform at the heart of his administration’s agenda for industrialisation and job creation.

Despite ongoing interventions, Nigeria’s national grid continues to suffer from instability. Data from the Nigerian Electricity Regulatory Commission (NERC) show multiple partial and total collapses in 2024, including two nationwide blackouts.

Adelabu said the proposed super grid would deploy advanced transmission technology to increase capacity and reduce system failures.


Toward a Regional Power Hub

Nigeria’s energy reform efforts have continental implications. The development of a super grid could not only stabilise domestic supply but also enable the country to export power to neighbouring states through the West African Power Pool (WAPP) framework, advancing regional energy integration.

By Olamilekan Okebiorun, Business Insider Africa

Related story: Chinese firms launch solar project to light up Nigerian capital city

Chinese firms launch solar project to light up Nigerian capital city

Two Chinese construction firms, China Civil Engineering Construction Corporation (CCECC) and CGCOC Group Co., Ltd., have officially broken ground on the "Light Up Abuja" project, a flagship infrastructure initiative of Nigeria's Federal Capital Territory Administration (FCTA).

Government officials and residents gathered on Thursday for the launch ceremony in Abuja, the Nigerian capital, which marked the start of comprehensive installations of advanced hybrid solar streetlights across the city -- a move expected to significantly enhance security and urban development.

The project, divided into two main parts, assigns CCECC and CGCOC key responsibilities for delivering integrated solar lighting systems across major districts and expressways in the FCTA.

Speaking at the ceremony, FCTA Minister Nyesom Wike highlighted the project's importance in improving residents' quality of life and safety. He noted that conventional streetlights had become largely dysfunctional due to vandalism and poor maintenance, while the new hybrid solar systems are equipped with built-in resilience and advanced features to overcome these challenges.

A key innovation, Wike said, is the integration of surveillance modules into the streetlights. These will connect to a centralized control room, enabling real-time monitoring and rapid response to vandalism and other security threats. This technology, he added, is expected to deter criminal activity and safeguard government investments in public infrastructure.

Wike hailed the deepening comprehensive strategic partnership between China and Nigeria in infrastructure development, describing the project as a tangible outcome of President Bola Tinubu's state visit to Beijing in September 2024 and a reinforcement of the mutually beneficial ties between the two countries.

Scheduled for completion within six to seven months, the project aims to transform Abuja's nighttime landscape ahead of the city's 50th anniversary in 2026. Under the agreement, the two Chinese firms will not only install but also maintain the solar lighting systems for four to five years.

"This project actually captures all the major areas of Abuja. As we all know, light is essential to our lives and livelihood. In this work, what we will deliver to Nigerians is not only the streetlight, but we will also proffer solutions to power supply and lighting problems, using solar energy," said Guan Shuai, managing director of CCECC in Nigeria.

People's Daily Online

Video - Drive to solar power gathers pace across Nigeria

With rising costs, and unreliable electricity supply from the national grid, many in Nigeria are turning to alternatives like solar energy. Despite the country having regular sunlight, solar power makes up less than 0.5 percent of its generation capacity in 2022. And now households and businesses are tapping into the power of the sun, to fill the energy gap.

CGTN Africa

Related story: Solar power producer Sun King targets triple growth in Nigeria

'Nigeria First' policy aims to prioritize homegrown goods and services

Supporters say the initiative represents a bold step toward economic self-reliance. The government states that the policy will be supported by an executive order to ensure the desired results.

CGTN Africa

Dangote links power shortages in Nigeria to stolen funds hidden abroad

During a recent tour of the Dangote Refinery in Lagos, the president of the Dangote Group, Aliko Dangote, highlighted how unreasonable it is for a country of over 200 million people to be limited to 4,500 to 5,000 megawatts (MW) of power.

“We as a company alone are producing, group-wide for our own consumption, over 1,500 MW,” he stated.

"So, Nigeria should not be three times what we are producing as a country. Nigeria should be at about 50,000 MW to 60,000 MW,” Dangote added.

The Nigerian business mogul, whose refinery and fertilizer plants are among Africa's largest, explained that his company's investment in energy demonstrates how private sector engagement in power generating can be game-changing.

He encouraged Nigeria's government to further open up the industry to encourage private investment and involvement.

Dangote, who has spent the last decade developing the $20 billion refinery project, also stated that, while establishing the refinery was extremely tough, increasing Nigeria's power generating capacity to 30,000 MW is far easier - provided the appropriate policies and commitments are in place.

“What we have done here just shows that there’s nothing impossible. All this can be replicated in our power sector. There’s no reason why Nigeria should be doing 5,000 MW,” Dangote asserted.

“What we have actually done here is much more difficult than making Nigeria 25,000 or 30,000 megawatts of power, with transmission and distribution. But it’s not the work of the government alone,” he continued.

Dangote's comments come as his refinery, which is projected to drastically cut Nigeria's dependency on foreign petroleum products, ramps up operations.

Dangote links power shortages to a lack of investment and stolen funds hidden abroad

Much like the fact that such a facility which is typically supposed to be a government initiative is now privately owned, the Nigerian philanthropist noted that the power sector is also privatized, which presents an opportunity for investors.

“We, the private sector, Nigerians, most especially us, should stop taking our money abroad and invest the money here to make sure that we develop our own country and continent, because without us showing the confidence that, yes, we have confidence in our own economy and the leadership of the country, foreigners will not come,” Dangote explained.

“We know our leaders; we have confidence in them. So, that money they’re taking out of the country, they should leave it here so that it can benefit everybody.”

As reported by the Punch newspaper, he criticized people who stole public assets and hid them overseas rather than utilizing them to help develop the country, as he connected capital flight to stunted growth.

“I keep saying this: there’s nowhere that you will say that there’s no corruption. There are lots of countries that have more corruption than we do, but they are growing. Our biggest problem and challenge is that people who have stolen money have taken the money abroad,” he said.

“So, the money has no use to them; it has no use to their family because they cannot show their family that they have stolen money. And they are not investing here to grow the domestic economy.”

By Chinedu Okafor, Business Insider Africa

Related story: Solar power producer Sun King targets triple growth in Nigeria

Video - Nigeria, China partner to build EV plants

Nigeria is set to embark on a groundbreaking partnership with China to drive the adoption of electric vehicles (EVs) in the country. The Chinese Ambassador to Nigeria, Yu Dunhai, revealed plans to establish EV factories and other manufacturing ventures in Nigeria through collaboration between the two nations.

CGTN

Related story: World’s largest electric vehicle-producing country set to establish an EV plant in Nigeria

Solar power producer Sun King targets triple growth in Nigeria

A Kenya-based solar power company is banking on using an $80 million loan from the World Bank’s private investment arm to meet its target of tripling sales in the world’s most electricity-deprived country within the next few years.

For nearly two decades, Sun King has sold solar-powered electronics to African households and small businesses with unreliable connections to grids, spreading full product payment over up to two years. Its kits are made in China and are now available in 11 African countries, including Nigeria where it has sold 2 million kits mostly within the last three years, founder and chief executive officer T. Patrick Walsh told Semafor.

Nigeria is where Sun King sees “the lowest rates of non-payment” for its products and is its fastest-growing market, Walsh said. Having concluded a deal this month for an $80 million loan from the International Finance Corporation (IFC) and a Nigerian bank, the company plans to rapidly scale up.

“We are probably going to grow in Nigeria by at least a factor of 3 from where we are today,” Walsh told Semafor. Tanzania, Malawi, and Togo are other markets where Sun King expects growth to speed up, he said.

Despite its vast stores of natural gas, Nigeria has the highest number of electricity-deprived people of any country in the world, according to the World Bank and International Energy Agency. Sun King is aiming to reach the nearly 90 million Nigerians estimated to be without electricity.

Its operation relies on 9,000 agents whose job it is to physically reach potential customers living mostly outside of Lagos and the capital city Abuja. A network of 85 walk-in outlets act as touch points for after sales support.

The company is replicating a model that has served it in Kenya, where an estimated one in five households use a solar product. On a continent where more than half a billion people are without electricity — prompting international efforts like the Mission 300 agenda to provide 300 million people in sub-Saharan Africa electricity access by 2030 — Walsh is convinced that “the pathway for people to get their first connection is through solar.”

Solar-based electricity remains a pricey proposition for many in Africa. The upfront cost of setting up panels, batteries, and an inverter to provide half-a-day of power for a Nigerian household can be up to $4,000, which could make the service out of reach for a minimum wage earner.

Sun King learned early that its services were “not going to scale without access to finance for the end customer,” its CEO said. Offering a payment plan spread over a year has made it easier for customers to buy products, but affordability remains the company’s “biggest challenge to getting these products out there,” he said.

Walsh believes they have produced evidence of demand and adoption to secure multimillion-dollar financing deals, like the one with the IFC. In 2021, the company received a $75 million loan to expand operations in Kenya from a group of lenders including South Africa’s Standard Bank, and British International Investment, the UK’s development financier.

The loans are denominated in the local currencies, naira and Kenyan shillings, in each case. It helps the company hedge against foreign exchange volatility that makes it unfavorable to fund local currency assets with foreign currency debt, said chief financial officer Krishna Swaroop.

“We cannot solve macro-economic instability, but local currency financing makes our business stable in order to continue working and expanding,” he said.

By Alexander Onukwue, Semafor

World’s largest electric vehicle-producing country set to establish an EV plant in Nigeria

The initiative is a huge step forward for Nigeria's industrialization aspirations and reinforces Beijing's expanding presence in Nigeria, in a year when the East Asian country has been very active within Africa’s largest oil-producing country.

This new development was made known during a courtesy visit by China's Ambassador to Nigeria, Yu Dunhai, to Dr. Dele Alake, Minister of Solid Minerals Development.

During the visit, Ambassador Dunhai underlined the need for further collaboration between the two countries in unleashing Nigeria's solid minerals potential, a crucial component in EV battery production, and propelling Nigeria's industrial growth.

Dunhai also stated that China has always recognized Nigeria as an important partner in its foreign strategy.

The Chinese ambassador mentioned the recent meeting between Presidents Bola Ahmed Tinubu and Xi Jinping, during which both leaders decided to upgrade Nigeria-China bilateral relations to a comprehensive strategic partnership, paving the way for considerable economic and technical collaboration.

Dr. Alake, in response noted that the Federal Government has granted authority for China to develop electric car manufacturing factories in Nigeria, as he emphsized the idea that Nigeria is open for business.

He asked that the ambassador persuade Chinese businesses to make full-cycle investments in Nigeria, from extraction to processing, as reported by the Punch.

“For years, our minerals have been exported raw to fuel foreign industrialisation. That must change, Dr. Alake stated.

“We now prioritise local processing to drive Nigeria’s development. For instance, with the abundance of lithium, we want to see local manufacturing of electric vehicles and batteries,” he added.

“Plans are underway to establish electric vehicle factories and other manufacturing ventures in Nigeria.

Chinese companies are already deeply involved in Nigeria’s mining sector, from exploration to processing,” Dr. Alake continued.

“We aim to deepen this collaboration, especially in line with President Tinubu’s eight priority areas, notably economic diversification through solid minerals,” he added.

Deals between China and Nigeria in 2025 so far

The EV announcement follows a flood of Chinese investments and strategic engagement with Nigeria so far in 2025.

In April, the National Sugar Development Council (NSDC) inked a $1 billion agreement with Chinese company SINOMACH to build a large-scale sugarcane production and processing facility.

Mr. Kamar Bakrin, NSDC Executive Secretary, told the News Agency of Nigeria (NAN) that the investment will alter Nigeria's sugar sector and strengthen China's strategic footprint in the nation.

216 Chinese businesses traveled to Nigeria in March to look for potential investment opportunities. Interestingly, 74 of them specifically indicated interest in Nigeria's oil industry, indicating China's intention to diversify its holdings in the nation's important sectors.

A new shipping route that provides an exceptional 27-day transit time between Shanghai and Lagos began in February when the MV Great Cotonou, a Con-Ro vessel from China, arrived at the PTML facility in Lagos, West Africa's largest multipurpose RO/RO facility.

It is anticipated that this innovation would transform the logistics of regional trade.

In January, the China Development Bank approved a $254.76 million loan for a major railway project in Nigeria, expanding the country's railway modernization program as part of China's Belt and Road Initiative.

By Chinedu Okafor, Business Insider Africa

Nigeria’s Arnergy Solar Secures $18 Million Series B Round to Scale Solar Deployments, Expand Access in Key Sectors

Arnergy Solar, a leading Nigerian renewable energy company specializing in distributed solar power solutions, has successfully closed an $18 million Series B funding round to accelerate its solar deployment initiatives and expand its footprint across critical sectors.

The funding round was led by CardinalStone Capital Advisers Growth Fund (CCA-GF), with British International Investment (BII) joining as a new investor with a $3 million commitment. The round also drew continued backing from existing investors including Norfund (the Norwegian Investment Fund for Developing Countries), Breakthrough Energy Ventures (BEV)—founded by Bill Gates, EDFI Management Company (EDFI MC), and Shell-backed All On.

The $18 million raise includes a $15 million Series B extension and a previously closed $3 million Series B1 round led by All On. This brings Arnergy’s total capital raised to date to over $27 million, following its $9 million Series A in 2019 that included support from BEV, Norfund, ElectriFI, and All On.

The new capital is earmarked for deployment of 12,000 additional solar systems by 2029, expansion of Arnergy’s rent-to-own solar financing model, and sector-specific growth in healthcare, education, and small and medium-sized enterprises (SMEs). The company also plans to leverage strategic partnerships to strengthen its distribution network and increase energy access across Nigeria.

Legal advisory on the deal was provided by Aluko & Oyebode, with Partner Oludare Senbore leading the transaction, supported by Zacheus Akanni, Esther Yugbovwre, and Precious Odina.

Arnergy’s solar systems play a vital role in closing Nigeria’s energy access gap by offering clean, reliable, and affordable off-grid power to underserved communities and businesses. This latest investment underscores investor confidence in the company’s scalable model and its role in driving Nigeria’s energy transition.

By Kavitha, Solar Quarter

Video - Nigeria significantly cuts electricity subsidies, sparks public discontent

The Nigerian government announced a 35 percent reduction in electricity subsidies, following tariff hikes for major consumers implemented in April last year. While the move has reportedly saved the government millions of dollars, many Nigerians are unhappy as they continue to struggle with high energy costs and unreliable distribution.

CGTN

Nigeria cuts electricity subsidies by 35% after tariff hike

Nigeria has achieved a 35% reduction in electricity subsidies following a tariff increase implemented last year for some users, Power Minister Adebayo Adelabu said on Thursday, easing some pressure on public finances in Africa's most populous nation.

Nigeria's power sector is burdened by a failing grid, gas shortages, high debt and vandalism, leading to a reliance on expensive generators for many.

The country was spending nearly 200 billion naira ($125.01 million) monthly on electricity subsidies because existing tariffs were not commercially viable.

The government last year eliminated subsidies for the 15% of customers classified as heavier users, including households and businesses consuming larger amounts of electricity.

Adelabu told a press briefing in Abuja that this targeted tariff adjustment has yielded significant results, with "the market generating an additional 700 billion naira in revenue, reflecting a 70% increase".

This has helped alleviate the substantial financial strain on public finances, improve generation, and reduce the government's tariff shortfall from 3 trillion naira to 1.9 trillion naira.

But the power sector still faces deep-rooted challenges. The country has an installed capacity of 13,000 megawatts, but typically produces only about a third of that, exacerbating the reliance on costly alternatives.

This situation is compounded by state-controlled power tariffs that have historically been too low for distribution companies to cover their costs and pay generating companies, leading to ballooning debts within the sector.

Debt owed to power generating companies has reached 4 trillion naira ($2.50 billion), prompting threats of plant shutdowns.

Adelabu said there were plans underway to help ease the debt burden, with the government intending to pay half of the debt this year through budgetary allocations and promissory notes that companies can discount as needed.

By Isaac Anyaogu, Reuters

Nigeria suffers power outage after grid failure, power companies say

Nigeria suffered a widespread electricity blackout after its national grid collapsed on Wednesday, the country's power distribution companies said.

Nigeria's grid is prone to failure and has this year suffered partial or total collapse at least 10 times, mainly due to faults and vandalism at power installations.

Distribution companies across Nigeria, also known as Discos, said in separate statements that the grid had failed at around 1233 GMT and they hoped electricity would be restored soon.

Data from the Transmission Company of Nigeria showed electricity generation plunged from 3,087 megawatt before the grid collapse, to zero as of 1400 GMT. 

Reuters 

Related story: Video - Power shortages, rising fuel costs accelerate shift to solar in Nigeria