{
  "id": 10421015,
  "title": "Nigeria can build solar power plants, but funding remains elusive",
  "url": "https://urgent.news/2026/09/28/nigeria-can-build-solar-power-plants-but-funding-remains-elusive",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-28T10:09:45.000Z",
  "source": {
    "name": "TechCabal",
    "slug": "techcabal",
    "url": "https://techcabal.com/2026/09/28/nigerias-minigrid-problem/"
  },
  "original_language": "en",
  "account": "Nigeria has successfully deployed 180 solar hybrid mini-grids across 23 states, connecting over 146,000 households and generating 19.2MW of renewable energy through the Nigeria Electrification Project (NEP). However, securing reliable, scalable financing remains the primary challenge. As of 2024, only 62.5% of Nigeria's population has access to electricity, leaving over 80 million people unserved and millions more experiencing unreliable power that incurs high costs. Households rely on expensive petrol and diesel generators, spending ₦327.05 billion ($246.3 million) compared to ₦175.05 billion ($131.8 million) on grid electricity. This misallocation of funds presents an opportunity for renewable energy infrastructure. Despite initial success, the NEP highlighted vulnerabilities such as currency risk and capital constraints. The subsidy, initially $350 per connection, was increased to $600 due to depreciation and equipment cost surges. However, the overall allocation fell from $150 million to $56.7 million, reducing connections despite higher per-unit support. Developers face challenges as they incur foreign currency costs while earning local naira revenues. Traditional bank lending is unsuitable, with short loan terms, high interest rates, and strict collateral requirements. Policy shifts are now focusing on blended finance mechanisms to mobilize private investment. The $300 million Nigeria Distributed Renewable Energy Fund, managed by the Nigeria Sovereign Investment Authority and Africa50, aims to de-risk projects and attract institutional capital. While the fund has not yet mobilized private capital or supported projects, its successful implementation could provide reliable, clean power, reducing dependence on expensive generators across Nigeria.",
  "summary": "Nigeria has built hundreds of solar mini-grids and connected more than 146,000 households, but expanding distributed power to millions more people will require a financing model that goes beyond grants and absorbs currency and credit risks.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}