In sunny Nigeria, plans for 14 new solar farms aimed to kickstart a struggling solar industry and produce significant amounts of electricity, approximately one-fifth of the country’s total grid capacity on a good day. “We were thrilled to be pioneers,” recalled Najim Animashaun, the managing director of Nova Solar Power, who was involved in one of the projects back in 2016. However, this grand vision crumbled when the Nigerian government failed to provide essential guarantees to developers. Despite a rising demand for clean energy, particularly in the form of small solar systems for homes, larger developers have struggled to overcome Nigeria’s reputation as a risky business environment. This challenge is not unique to Nigeria but is prevalent across sub-Saharan Africa, where a majority of those lacking electricity worldwide reside.
Addressing a panel on Africa’s green transition at the global climate negotiations in Baku, Azerbaijan, United Nations Secretary-General António Guterres highlighted the obstacles hindering the clean energy revolution in the region. Nigeria, in particular, stands out as a focal point of this issue, with a significant portion of its population living without access to electricity. The country’s power sector has failed to keep pace with its rapid population growth, leading to widespread reliance on wood for cooking and diesel generators for intermittent power supply.
At the climate talks in Baku, approximately $300 billion annually was pledged to support developing nations like Nigeria in transitioning away from fossil fuels and adapting to the challenges of climate change. However, this commitment was criticized by many developing countries as insufficient. Nigeria, grappling with the complexities of transitioning from a petroleum-driven economy to a more sustainable energy model, faces significant challenges in securing the necessary funding for renewable energy projects such as solar and hydropower.
Despite initial optimism and investor interest, the 14 solar projects in Nigeria faced numerous hurdles, including high interest rates, financial instability, and government reluctance to commit to long-term agreements for solar power purchase. As the solar industry evolved and costs decreased, developers encountered difficulties in obtaining the necessary guarantees from authorities and international financial institutions. The shift towards local currency payments further strained the viability of the projects, with the currency’s significant devaluation adding to the uncertainty surrounding the deals.
He remarked, “Nigeria isn’t really bankable.” The insufficient grid infrastructure in Nigeria has led to a significant gap in meeting the demand for electricity. With the national grid being able to supply only a fraction of the required electricity, many individuals have turned to solar solutions to at least provide some power. The use of micro-solar systems, which typically power lights and can also charge devices like cell phones, has seen a notable increase from 2016 to 2023, as reported by GOGLA, an association within the off-grid energy industry.
Sales of small rooftop solar systems that can power certain appliances have also witnessed growth, although there was a slight decline following the conclusion of a subsidy program earlier this year. Sun King emerges as a key player in the market for these small solar devices, which offer a cleaner and more cost-effective alternative to kerosene lamps or diesel generators. The expansion of the micro-solar industry has notably contributed to job creation, particularly for Nigeria’s youthful population. Olamide Ayo-Ogunlade, who serves as the human resources lead for West and Central Africa at Sun King, has witnessed significant growth in the company’s operations over the past four years, with the number of stores increasing from 19 to 90.
With over 8,000 salespeople, or “energy officers,” actively selling, installing, and servicing these products, as well as managing customer accounts, Sun King has established a robust workforce network in Nigeria. Ayo-Ogunlade highlighted the unique pathway of many energy officers, who often begin as customers themselves. After experiencing the benefits of the product firsthand, they are motivated to become entrepreneurs in the energy sector. Engaging in door-to-door sales and setting up stalls at various community gatherings, such as markets, churches, and mosques, energy officers play a critical role in expanding the reach of solar solutions across different regions.
To ensure the effectiveness and reliability of their workforce, Sun King invests in comprehensive training programs for energy officers, both in-person and online. These training sessions cover aspects of the company’s operations and products, while also providing mentorship opportunities for continuous learning and development. The emphasis on training holds significant importance, particularly in regions where skepticism towards solar technology remains prevalent. Siré Diallo, an expert in energy and climate finance affiliated with the United Nations Development Programme, pointed out that concerns about the reliability of solar installations persist in some areas.
Diallo highlighted that instances of customer dissatisfaction often stem from poor installation practices or the utilization of substandard equipment. However, he acknowledged that there have been improvements in recent years within the industry, indicating a positive trend towards addressing these challenges. Overall, the growing adoption of solar solutions in Nigeria presents not only an opportunity for sustainable energy access but also a platform for economic empowerment and job creation, particularly among the country’s burgeoning young population.
