KEY POINTS
- Distributed solar is being positioned as a key route to extending electricity access to more than 70 million Nigerians without power.
- Nigeria recorded more than five million new off grid connections between 2025 and 2026.
- Government subsidies and private financing are being used to make solar systems more affordable.
- Sun King says its monthly solar system sales have grown to about 100,000 units.
MAIN STORY
Olowoniyi spoke on Friday night at a renewable energy product launch organised by Sun King at the Lagos Marriott Hotel, Ikeja.
He said Nigeria recorded more than five million new off grid connections between 2025 and 2026, describing distributed solar as one of the quickest options for extending electricity to communities that remain underserved by the national grid.
He said the Federal Government was supporting renewable energy companies through the Distributed Access through Renewable Energy Scale Up, DARES, programme implemented by the Rural Electrification Agency.
According to him, the programme, backed by a $750 million World Bank facility, provides capital subsidies to renewable energy companies to lower the cost of solar equipment for Nigerians and support deployment in rural and low income communities.
Olowoniyi said the scale of the electricity access challenge meant government could not deliver the required connections alone.
He called for greater involvement by state governments and private sector operators, saying sustained access to capital would also be necessary to maintain the pace of new connections.
He said Mission 300, which targets electricity connections for more than 300 million Africans, was tracking Nigeria’s progress in new connections as well as the deployment of solar home systems and equipment used for productive activities.
Also speaking, Titilayo Oshodi, Special Adviser to the Lagos State Governor on Climate Change and Circular Economy, said renewable energy could help Micro, Small and Medium Enterprises increase productivity while contributing to the state’s climate and development objectives.
She said dependable electricity could allow businesses to operate equipment such as freezers and other appliances, with wider benefits for food preservation, education, water and sanitation.
Oshodi said payment plans that spread the cost of solar systems over time could make renewable energy more accessible to households and businesses with limited purchasing power.
She added that greater deployment of renewable energy among MSMEs could support commercial activity and economic growth in Lagos.
Lisbon Ogunsanmi, Country Business Manager, Sun King Nigeria, said the company had recorded a significant increase in demand, with monthly solar system sales rising from about 3,000 units to around 100,000 units.
He said the company had trained at least 200 installers and operated more than 136 shops, supported by after sales teams across Nigeria.
Ogunsanmi identified the upfront cost of solar systems as a major obstacle to adoption, saying financing arrangements that allow customers to spread payments could make reliable electricity more accessible.
Omoyemi Tuga, Vice President, Pay As You Go Sales, West and Central Africa, Sun King, said the company had introduced a 5 KVA Power Hub that could be expanded to 30 KVA, alongside a 210 litre Power Freeze designed for households and businesses.
He said the Power Freeze could run on solar power during the day and battery storage at night, while the Power Hub could serve homes, businesses, schools and hospitals.
Tuga said Sun King’s EasyBuy financing model allowed customers to make an initial payment and continue with weekly or monthly instalments over one to two years, depending on the product.
He said customers could obtain the 5 KVA Power Hub with a down payment from N340,000, while the Power Freeze would become commercially available soon.
Catherine Mudachi, Vice President, Global Affairs and Marketing, Sun King, said the financing model was intended to allow small businesses to pay for energy equipment from their business income instead of bearing the full cost at once.
She said customers could work towards ownership of the equipment while spreading payments over time.
Mudachi said cooperation among government, private energy companies and financiers would remain important to expanding reliable and affordable electricity access, particularly for underserved households and businesses.
THE ISSUES
- The scale of Nigeria’s electricity access gap makes solutions that can be deployed outside the conventional grid increasingly important, particularly in communities where grid expansion may take longer.
- The cost of solar equipment remains a significant barrier for households and small businesses, making access to financing as important as the availability of the technology itself.
- MSMEs stand to gain from more reliable electricity because power availability affects their ability to operate equipment, preserve goods and maintain regular business activity.
- Government subsidies can help reduce the initial cost of renewable energy deployment, but continued expansion also requires private capital and participation from state governments.
- The growth in demand for solar systems indicates a larger market for alternative energy, but affordability will remain central to whether that demand translates into sustained adoption.
WHAT’S BEING SAID
“The Federal Government cannot do it alone.” – Dayo Olowoniyi
“the financing model was designed to enable small businesses to pay for energy equipment from their business income rather than make the full payment upfront.” – Catherine Mudachi
“collaboration among government, private-sector operators and financiers remained important to expanding access to reliable and affordable electricity, particularly for underserved households and businesses.” – Catherine Mudachi
WHAT’S NEXT
Mission 300 will continue monitoring new electricity connections and deployment of solar home systems and productive use equipment in Nigeria.
The Federal Government, state governments, renewable energy companies and financiers are expected to continue working on financing and deployment models aimed at expanding electricity access.
BOTTOM LINE
Distributed solar is emerging as a major part of Nigeria’s strategy for closing its electricity access gap, particularly for communities and businesses outside reliable grid coverage. The challenge is no longer only deployment, but making systems affordable enough for households and businesses to adopt them.
