Nigerian DRE Market Report (May 2024)

Nigeria remains one of the world’s largest energy-access markets, with nearly 90 million people still without reliable electricity. This EU-supported market report shows how decentralised renewable energy (DRE) has become central to closing that gap. Driven by strong government commitment, donor-backed programmes, and an increasingly dynamic private sector, Nigeria now represents the largest proven mini-grid market in sub-Saharan Africa, with an estimated annual DRE market opportunity of over $9 billion.

The report highlights major progress since 2018, including clearer regulations, stronger institutional coordination through the Rural Electrification Agency, and growing commercial investment in mini-grids and solar home systems. Pay-as-you-go models, results-based financing, and productive-use integration are helping improve affordability and system viability. At the same time, persistent barriers remain; particularly access to affordable finance, foreign exchange risks, import bottlenecks, limited local manufacturing, and uneven policy implementation at state and federal levels.

Despite these challenges, the outlook is strongly positive. Falling technology costs, rising diesel prices, expanding donor programmes, and increasing private-sector confidence are accelerating market maturity. The report makes clear that Nigeria’s energy transition will not be driven by grid expansion alone, but by scalable, decentralised solutions that power homes, businesses, farms, and social infrastructure. With continued policy consistency, smarter financing, and stronger partnerships, Nigeria’s DRE sector is well positioned to deliver universal access while driving economic growth and climate resilience.