Nigeria Launches N100 Billion National Public Sector Solarization Initiative

The Federal Government of Nigeria has launched the National Public Sector Solarization Initiative (NPSSI) to deploy distributed solar power systems across public institutions. The Rural Electrification Agency (REA) announced that the programme, starting with NGN 100 billion in Federal Government funding, will cover schools, hospitals, security posts, government offices, and other critical facilities.

Partnerships and Agreements

The initiative was formalised with the signing of a Memorandum of Understanding between the REA, the Budget Office of the Federation, Infrastructure Corporation of Nigeria (InfraCorp), and the Ministry of Finance Incorporated (MOFI) in Abuja.

According to REA Managing Director/CEO, Abba Abubakar Aliyu, Phase 0 will be fully government-funded. Future phases will use innovative blended financing, attracting local and international private capital without sovereign guarantees or contingent liabilities. The goal is to replace diesel dependence, power essential infrastructure with clean energy, and reduce the public sector’s carbon footprint.

Budget Office DG, Tanimu Yakubu emphasised that solarisation is now a necessity and highlighted public institutions’ ability to pay for sustainable energy, improving market bankability.

InfraCorp CEO, Lazarus Angbazo called NPSSI a model for future infrastructure financing, stressing the need to reduce sole reliance on public funds. “NPSSI will drive the localisation of energy capability and integrate supply chains to deepen Nigeria’s renewable energy sector,” he added.

Nigeria Solar Status

By the end of 2024, Nigeria’s total installed solar energy capacity was about 385 MWp, and the country aims to achieve 500 MW capacity by 2025. 

In a bold move earlier this year, the Nigerian government revealed plans to ban solar panel imports to boost domestic production, putting faith in its domestic capabilities. Nigeria’s Minister of Science and Technology Uche Nnaji defended the move, insisting that the country had sufficient capacity to meet local solar energy demands through private firms as well as the National Agency for Science and Engineering Infrastructure, a Nigerian agency that’s been developing solar technologies.

Notably, in March, Nigeria’s Rural Electrification Agency signed an agreement for a 1.2 GW solar assembly plant, while announcing plans for another 1 GW plant.