Updated September 19 2025- The World Bank’s partnership with Nigeria to construct 1,000 solar mini-grids is crucial for addressing the country’s persistent energy deficit and driving economic growth. With a significant portion of Nigeria’s population lacking access to a reliable electricity grid, this collaboration provides a decentralized, clean, and sustainable solution. These mini-grids will power communities that are too remote or uneconomical for traditional grid extension, displacing the widespread use of expensive and polluting diesel generators.
Factsheet
Key objectives:
- Increase energy access: The primary objective is to connect households, businesses, public institutions, and small- and medium-sized enterprises (MSMEs) that are not served by the national grid.
- Stimulate economic growth: By providing a stable power supply, the project aims to boost local economies. It enables businesses to operate for longer hours, increases productivity, and supports the growth of new enterprises.
- Displace fossil fuels: The solar mini-grids will replace the widespread use of expensive, noisy, and polluting diesel generators, which are a major source of greenhouse gas emissions.
- Promote private sector investment: The project is designed as a public-private partnership. The World Bank provides essential funding and performance-based grants to private developers, creating a viable market for private investment in Nigeria’s off-grid energy sector.
Impact:
- Community development: The project improves the quality of life by enabling lighting, refrigeration for food and medicine, and access to modern appliances. It also supports essential services like healthcare and education.
- Environmental benefits: By transitioning communities from diesel to solar power, the initiative contributes to Nigeria’s climate goals and reduces the country’s carbon footprint.
- Job creation: The construction and operation of the mini-grids create both direct and indirect jobs for local communities, fostering skills development in the renewable energy sector.
The World Bank and Nigeria will construct 1000 solar power mini-grids in the country, the largest economy in Africa. With a population exceeding 200 million, Nigeria faces a significant energy challenge. Its installed power generation capacity of 12,500 megawatts (MW) is vastly underutilized. This leads to widespread dependence on petrol and diesel generators.
Also, the country will be constructing a 1000MW solar panel factory. This facility will be a great push in solar projects development in the country.
These mini-grids, composed of compact electricity generation units, typically range from a few kilowatts to around 10 MW. They hold the potential to power approximately 200 households each. During a visit to a mini-grid site near the capital city, Abuja, Banga detailed the progress. Around 150 mini-grids have already been established, with partial funding from the World Bank. These mini-grids deliver electricity to communities deprived of access.
Power Capacity Of Nigeria’s Solar Mini-Grids.
A joint study by the Energy Commission of Nigeria and the International Renewable Energy Agency (IRENA) outlines the nation’s solar potential. Current projections suggest utility-scale solar could generate 5GW and 25GW by 2030 and 2050 respectively. Off-grid solar may contribute 13GW and 29.5GW by these same milestones. In a transformative scenario, Nigeria could achieve 10GW and 40GW through utility-scale solar by 2030 and 2050, alongside 21.2GW and 75GW off-grid. With abundant solar resources, Nigeria has an opportunity for sustainable energy expansion.
Also read Bids Opened for Construction of 4000 MW Nuclear Power Plant in Nigeria.
Banga conveyed ambitious plans to expand Nigeria’s construction of 1000 solar mini-grids, with an additional 300 mini-grids set to be developed in conjunction with the government. This endeavor entails substantial investment, amounting to hundreds of millions of dollars, though no specific timeline was provided during his statement.
Crucially, Banga emphasized that the World Bank’s role in Nigeria’s construction of 1000 solar mini-grids extends beyond mere financial contributions. He noted that while the institution provides part of the funds, it operates as a subsidy, aiming to encourage diverse contributors, including governmental and private sector entities, to pool resources. This approach reflects a shared commitment to addressing Nigeria’s energy crisis.
In sub-Saharan Africa, a staggering 568 million individuals still lack access to electricity, according to World Bank data. Impressively, Nigeria’s construction of 1000 solar mini-grids is part of a larger effort to transform this stark reality. With nearly 8 out of 10 people worldwide without electricity residing in Africa, this initiative represents a significant stride toward reducing energy poverty and fostering sustainable development.
