Solar energy has asserted itself as one of the most sustainable solutions to Africa’s electricity challenges in the past few decades. Utilizing the sun’s energy has completely transformed the energy landscape globally, providing a clean alternative to fossil fuels. Many African industries are increasingly adopting solar energy to reduce carbon emissions, lower energy costs, and promote environmental sustainability in one clean sweep. In Nigeria, solar energy has immense potential to revolutionize industries. By leveraging this renewable resource, Nigerian industries can overcome current energy challenges, reduce operational costs, and contribute to a more sustainable future. This article explores how the solar energy revolution can transform various sectors in Nigeria, driving economic growth and environmental sustainability.
Current Energy Landscape in Nigeria
Decades of reliance on fossil fuels and the volatility of oil prices have negatively affected the environment, leading to a need for a more sustainable alternative. Other options, like hydropower and thermal power plants, are impeded by limitations such as aging infrastructure, dependence on water levels, and, ironically, inconsistent power supply. Solar energy, however, holds great promise for transforming Nigeria’s energy landscape and ensuring a sustainable future.
Potential of Solar Energy in Nigeria
Strategically located within the tropics, Nigeria receives abundant sunshine, making it highly suitable for solar energy growth. Nigeria gets an average solar radiation of about 5.5 kWh/m2/day, with the northern parts of the country experiencing even higher levels. Nigeria has extensive land areas that can be utilized for large-scale solar farms. These open spaces, particularly in the northern regions, provide ample opportunities for solar energy projects. In recent years, the Nigerian government has implemented several policies to promote transitioning to solar energy on an industrial and utility-scale. Some such initiatives include the National Renewable Energy and Energy Efficiency Policy (NREEEP), the Solar Power Naija Initiative, and the NERC Mini-Grid Regulation 2016. These policies and initiatives all have the same end goal: to improve energy efficiency across various sectors and reduce energy poverty.
Impact on Nigerian Industries
Manufacturing Sector
There is an increase in complaints from members of the Manufacturers Association of Nigeria over the cost of electricity and how it’s affecting their businesses. The federal minister for power in Nigeria, Adebayo Adelabu, commented on this at the just concluded Nigerian Oil and Gas conference in Abuja. There is awareness by organizations like the United Nations Framework Convention on Climate Change (UNFCCC) and the Federal Ministry of Environment (FME) for companies in the manufacturing sector to use renewable energy sources for output production to reduce greenhouse gas and environmental pollution arising from carbon dioxide emissions.
According to a study conducted by Ibrahim Enoch Owusu-Sekyere et al., in Volume 188, May 2024 of ScienceDirect, beyond the environmental benefits, Micro, Small, and Medium enterprises (MSMEs) that were beforehand using the national grid and standby generators, as well as those that had no alternative electricity source, found subscription to solar energy minimizes energy cost considerably. These MSMEs that subscribe to solar energy obtain significantly higher monthly earnings and net income than non-subscribers. The study concludes by encouraging the government and stakeholders to pay more attention to transitioning to solar energy in this sector. Some manufacturing companies that have been taking steps to transition their energy sources to solar-powered include Nigerian Breweries Plc.
Nigerian Breweries signed a deal with Daystar Power for a 4.3-megawatt peak solar plant in its Lagos brewery. The project comprises a solar plant with a 4.2 megawatts peak (MWp) capacity and a 2-megawatt-hour (MWh) battery storage system. This installation is one of Nigeria’s largest solar and battery storage projects tailored for an industrial manufacturer. The solar-powered system will be a hybrid solution that annually produces 5,249 megawatt-hours (MWh) of electricity, accounting for 42% of the daytime power consumption at the Lagos brewery. This installation will significantly reduce reliance on diesel generators, displacing an estimated 31.4 million liters of diesel and preventing an estimated 84,758 tons of CO2 emissions over the project’s 20-year operational span.
In Ibadan, Oyo State, Nigerian Breweries also commissioned a 663.6 kilowatts per hour(kWp) solar plant at the Ibadan brewery of Nigerian Breweries Plc. The solar plant cost about N300 million and was executed through a fully financed agreement with Crossboundary Energy Limited. The brewery has a long-term goal of using renewable energy to power 70% of its industrial activities by 2030. These steps demonstrate the organization’s determination to reach the goal. It is estimated to supply approximately 800 MWh to the brewery annually, significantly reducing the current cost of power and reducing the plant’s CO2 emissions by over 10,000 tonnes over the plant’s lifespan.
Another manufacturing company taking steps to transition to solar energy is Lafarge Holdings. The Egyptian subsidiary of the cement merchant signed an agreement in 2022 with Lumika Renewables to invest $93 million to supply solar energy enough to power a Lafarge cement plant from 2024. The solar plant is expected to be one of the largest renewable energy projects for a manufacturing client in Egypt, but it has yet to materialize. Considering the massive size of the cement plant (a production capacity of 10.2 million tonnes per year and boasting 2000 employees), it will consume a lot of electricity.
Agricultural Sector
The agricultural sector in Nigeria is a major contributor to the country’s economy, accounting for nearly 23.7% of the GDP in 2022 and providing employment for 75% of the workforce. Milling, threshing, drying, chilling, and cold storage are vital for the nation’s economy and could be significantly improved with a consistent electricity supply. Some companies in the agricultural sector, like Soilless Farm Lab, are adopting solar renewable energy to power agrarian activities. For example, Soilless Farm Lab uses eco-friendly electric cargo bicycles from Thinkbikes during the harvest season to reduce carbon monoxide emissions.
The Embassy of the Kingdom of the Netherlands in Nigeria funded the HortiNigeria project between 2021 and 2025. The project introduced solar-powered irrigation pumps to women farmers in Garin Ali Village, Kano state, significantly improving their farming business. In addition, Israeli investors are planning to establish a solar-powered farm in Rivers State to enhance agriculture and food security.
Transportation Sector
Nigeria aims to reduce carbon emissions by achieving 10% biofuel blends by 2030 and complete EV adoption by 2060 as part of the Energy Transition Plan (ETP). Lagos, Africa’s most populous city, aims for complete decarbonization by 2050. The Lagos Metropolitan Area Transport Authority is working on electricity-powered buses, service outlets, and charging centers as part of the transition to renewable energy. The state recently unveiled its first set of electric buses for the mass transit scheme and intends to increase its fleet of electric vehicles.
Initiatives such as using 2-wheel vehicles powered by lithium batteries, electric bicycles, and scooters for ride-sharing and lease can effectively mitigate environmental challenges, especially air pollution. Sterling Bank launched Nigeria’s first publicly available EV charging station in Lagos, and other companies like Trekk Scooters and Thinkbikes are providing low-cost, carbon-free electric scooters and electric cargo bikes to promote green mobility options.
Looking Ahead
With the rapid global technological advancement in solar energy, the potential for growth and innovation in this sector is immense. Transitioning to solar power in various sectors can be more seamless than we know now. New solar cell technology, such as bifacial solar panels, could capture sunlight on both sides. Innovations in battery technology enhance storage capabilities, allowing for more efficient energy use and better integration with the grid. AI can now optimize solar system performance and maintenance, while blockchain technology can streamline energy transactions and improve grid management.
It is in the hands of policymakers and stakeholders to implement tax credits, rebates, and subsidies for residential and commercial solar installations, thereby accelerating this journey. Their investment in modernizing the national grid to accommodate distributed solar energy is crucial. By supporting local research and development in solar technologies through grants and partnerships, and by partnering with international organizations and countries with advanced solar technologies to share knowledge and resources, they can play a significant role in this transition.
