Powered by renewable energy: the world is paying attention, you should too

Change is afoot, and it’s a good one, set to help Nigeria achieve its trillion-dollar industrial ambition.

Around the world, energy systems are being redesigned at an extraordinary rate. Renewable energy capacity is expanding faster than at any time in history, with solar energy leading the way. Demand is also changing. The drivers of energy consumption are no longer just households and traditional industries, but now include electric mobility, cloud computing, data centers and manufacturers.

The world isn’t just watching, it’s putting its money where the attention is deserved. There is a growing wave of investment and financing to support Nigeria’s push into renewable energy.

The federal government, through the Rural Electrification Agency (REA), is leading the charge in collaboration with private investors and development partners, all supported by a supportive policy environment.

Recently in Niger State, the state government officially released 500 hectares of land for the development of a 200 MW solar power project that will power steel mills in Abuja. This 200MW solar-powered industrial power project isn’t just about generating electricity; it’s about creating a model for how renewable energy can directly support industrial growth, local manufacturing, job creation and economic transformation.

Similarly, UNDP under its Africa Minigrids Program (AMP), with funding from the Global Environment Facility (GEF) and in collaboration with RMI, the African Development Bank, and REA has invested over US$5.9 million in 23 separate sites in Nigeria. This funding is particularly interesting as it specifically aims to support women and position them as leaders in the race to achieve sustainable energy. This funding is expected to mitigate approximately 74,000 tonnes of CO_2 over the life of the mini-grid investments by replacing diesel and firewood with solar energy. It has also transformed the lives and businesses of more than 20,000 people.

Additionally, the International Finance Corporation (IFC), a member of the World Bank Group, in collaboration with Norfund, the Norwegian Investment Fund for Developing Countries, through financing of up to $83.2 million, is supporting five renewable energy service companies (RESCOs); Darway Coast Nigeria Limited, GVE Projects Limited, Prado Power Limited, PriVida Power Limited and StarTimes Energy to expand access to last mile electricity in communities that remain disconnected from the national grid. This financing also includes $35.3 million in concessional debt drawn from the IDA private sector window blended financing facility and the IFC concessional capital window. Together, these initiatives represent an estimated capital expenditure of $271 million, which will fund the deployment of 315 solar hybrid mini-grid sites and connect 2.9 million people to clean electricity.

In the private sector, companies like Sun King see the renewable energy space in Nigeria as not only critical, but also highly commercially viable. In May 2025, Sun King, in partnership with the World Bank Group’s International Finance Corporation (IFC) and Stanbic IBTC Bank, secured an $80 million loan, entirely denominated in Naira, to expand access to off-grid solar energy in Nigeria. The investment is in line with Nigeria’s Country Partnership Framework with the World Bank Group and contributes to Mission 300, a joint initiative launched with the African Development Bank in 2025 to expand access to electricity across Africa.

Commenting at the time, Anish Thakkar, co-founder of Sun King, said: “Off-grid solar energy provides the fastest and most scalable path to universal electrification across Africa.”

This collaborative momentum is further reflected by targeted structures from players such as First City Monument Bank (FCMB), which has launched a massive $188 million green finance facility alongside the REA to support broader sustainable infrastructure. FCMB had also earlier launched a $100 billion dual currency financing to support the expansion of energy access across Nigeria.

Other commercial banks such as Lotus Bank have also partnered with REA to launch a dedicated $100 billion interest-free financing for renewable energy, ensuring that market-adapted credit reaches disadvantaged communities.

More recently, WeLight, arguably Africa’s largest rural electrification company, has openly stated that it will invest in Nigeria by 2027. Backed by €27 million in funding from the IFC, this reinforces an earlier Memorandum of Understanding (MOU) with the REA to deploy and operate 400 mini-grids and 50 MetroGrids in Nigeria by 2030.

The REA does not attempt to solve all power challenges everywhere at the same time. The agency is prioritizing places where reliable energy can quickly translate into productivity and revenue, allowing it to undertake more projects to accelerate energy access. This is the thinking behind the federal government’s “Electricity Growth Zones,” areas where electricity supply, economic demand, infrastructure investment and private capital are deliberately aligned.

The speed of these investments shows us that distributed energy can move faster than traditional infrastructure when economics, enabling policy environments and technology align. Solar-plus-storage, integrated generation and dedicated renewable infrastructure can support our $1 trillion ambition and spark an industrial surge in ways that conventional grid provision alone may struggle to achieve in the near term.

Speaking recently at the LCCI Renewable Energy Outlook conference, Dr Abba Aliyu, Chief Executive Officer of REA, said: “If Nigeria creates predictable pipelines of mini-grids, public sector solarisation, integrated generation, industrial solar systems and large renewable projects, producers will have the confidence to invest.”

“If manufacturers invest, projects become cheaper, supply chains become stronger, jobs are created and the economy becomes more valuable,” he added.

Under Dr. Aliyu’s leadership, the agency is evolving. Moving away from its past reputation as a vehicle for lawmakers’ campaign projects, it is quickly becoming a rallying point as a market-enabling institution. The agency has built and continues to build data, standards, project pipelines, demand aggregation models, and financial partnerships that enable the private sector to grow.

A market that cannot see itself clearly cannot attract capital efficiently. The world is paying attention, Nigerians should also pay attention to the next decade, which will be powered by renewable energy.

Jeremiah is a commentator and legal financial advisor. Writing from Lagos, Nigeria.