Nigeria’s Green-Energy Transition: Opportunities for Indigenous Firms – Dr. Kenny Odugbemi

Nigeria is accelerating its renewable-energy agenda through progressive policies and strategic initiatives that are reshaping the country’s power landscape. Landmark reforms, including the Electricity Act 2023 and the National Renewable Energy and Energy Efficiency Policy (NREEEP), alongside the proactive programmes of the Rural Electrification Agency (REA) such as the Nigeria Electrification Programme and Solar Power Naija, are creating new avenues for investment, employment, and expanded electricity access.

These frameworks provide a predictable regulatory environment that encourages both domestic and foreign investment. By allowing states to develop their own electricity markets while maintaining federal oversight, the Electricity Act 2023 establishes a unified legal platform for renewable and off-grid energy solutions.

NREEEP further reinforces this by setting ambitious renewable-capacity targets and promoting private-sector participation, signaling Nigeria’s long-term commitment to sustainable energy. Complementing these reforms, the Climate Change Act 2021 aligns financing with climate objectives, positioning the country as an attractive destination for ESG-focused capital.

For indigenous green-energy service providers, this evolving landscape presents significant opportunities. Local firms can leverage REA’s results-based grants, performance-linked subsidies, and risk-mitigation instruments to finance mini-grid and off-grid projects. Policies emphasizing local content give Nigerian companies a competitive advantage, enabling them to lead in procurement and project implementation.

Beyond access to funding, the sector promises meaningful job creation, offering both high-skill roles in engineering and low-skill opportunities in installation, operations, and community engagement. Reliable electricity, in turn, enables small businesses, health clinics, schools, and agro-processing hubs to flourish, generating broader economic growth and reinforcing the value of local energy solutions.

Investment Proposal: Advancing Nigeria’s Renewable Energy Sector – Dr. Kenny Odugbemi

Indigenous providers also stand to benefit from strategic partnerships with international investors. Joint ventures can leverage local knowledge and networks to de-risk projects, secure financing, and adopt advanced technologies. Scaling operations through consortiums, upskilling workforces with certifications in solar and energy efficiency, and embracing modular, plug-and-play solutions will further position local firms to meet national energy demands efficiently.

By participating in mini-grid deployments, solar home systems, and rooftop solutions in both rural and urban areas, Nigerian companies can directly support the country’s green-energy transition. The REA’s Solar Power Naija programme alone targets one gigawatt of off-grid capacity, expected to serve over 17.5 million people by 2027.

In conclusion, Nigeria’s energy reforms and the proactive role of REA are unlocking transformative opportunities for indigenous service providers. By capitalizing on these policies, local firms can expand electricity access, create jobs, stimulate economic activity, and attract substantial foreign investment, turning Nigeria’s renewable-energy ambitions into a driver of sustainable development.