BusinessDay
Rekiyah Mohammed
May 15, 2026
epa01837390 Workers labor in a factory of a Chinese solar panel maker in Hangzhou in east China’s Zhejiang province 26 August 2009. Chinese photovoltaic manufacturers have asserted a major role in halfing the cost of solar panels over the last year, according to a recent report on The New York Times. EPA/STR
How small, local energy systems are solving a problem the national grid has struggled with for decades.
In the quiet village of Mpape, just a few kilometers from the sprawling luxury of Abuja, the sun sets with a heavy finality. A shop owner once closed his business at dusk. Not because he wanted to, but because darkness gave him no choice. Fuel for his generator was too expensive, and for the residents here, the “National Grid” was a myth, a series of wires that passed over their heads but never reached their homes. Today, his shop stays open into the night. A small solar-powered system hums quietly nearby, powering his lights, a fan, and even a charging point for customers. Business is better. Life is different. Minigrids are the shortcut to energy justice.
However, this shop owner’s success is an exception to a frustrating rule. For decades, Nigeria’s electricity story has been one of centralized struggle, where the focus on big power has left small communities in the dark. In many parts of Nigeria, electricity is still treated like a privilege instead of a basic need. Despite being rich in natural gas, the country continues to face unreliable power supply.  Nigeria had chased the dream of universal electrification through grid extension. It was a noble but flawed strategy. Stretching high-voltage cables across difficult terrain to reach a village of 500 people is prohibitively expensive and technically inefficient.
According to the World Bank, 85 million Nigerians, 45% of the population, still lack access to the electricity grid. Larger disparities exist in access to electricity between urban areas (84%) and rural ones (26%). Power deficit affects households, businesses, and key public buildings such as hospitals. It is estimated that 40% of primary health centres, which mainly serve rural areas, lack enough power to conduct standard operating procedures.
For most Nigerians living outside major cities, electricity is not just unreliable; it is simply unavailable. And for those with access to the grid, reliability is a myth. Nigeria’s national electricity grid has remained highly unstable, with repeated system failures disrupting power supply across the country. Between May 2023 and early 2026, the grid has recorded no fewer than 20 collapses, according to industry data. The critical electricity infrastructure financing gap estimated at $100 billion (about twice the country’s 2026 federal budget) annually over the next 30 years, makes grid-based electricity expansion increasingly challenging.

This is where minigrids come in.
Minigrids are small, local power systems that generate and distribute electricity within a community. Instead of waiting for the national grid to reach every community, a process that is slow and expensive, minigrids bring power directly to where people live. Most are powered by solar energy, making them cleaner, quieter, and cheaper to maintain over time compared to diesel generators.
When minigrids power productive activities, like agro-processing, tailoring, welding, or small-scale manufacturing, they create income streams that help communities sustain and expand their energy use. Field engagements and community-level feedback consistently highlight this link between energy and livelihoods. Where electricity supports income generation, adoption is higher, and systems are more sustainable.
The Path Forward: Innovation and Ownership

Paraphrasing the words of the National Coordinator of the Resource Justice Network Nigeria at a 2025 stakeholder renewable energy roundtable organized by BudgIT, the success of the energy transition will not be measured solely by the total megawatts added to the national grid, but by the extent to which it reduces inequality and creates opportunities for the marginalized.

 According to BudgIT’s analysis, at least N43.17 billion across 35 projects was allocated to minigrid (mostly solar) development in the 2025 budget. Certainly, the government recognizes that decentralised electricity systems are key to improving access across the country. But the government cannot achieve this on its own, especially given the paucity of public funds and rising public debt.
To make this dream a reality for the 80 million Nigerians still in the dark, we need more than just technology; we need innovative financing and private sector investors. Pay-as-you-go solar systems and microfinance schemes contribute to lowering the barriers to entry for low-income households. By reducing reliance on expensive and polluting diesel generators, these approaches ease financial pressure while promoting environmental sustainability.
But the issue also goes beyond access. As emphasized at BudgIT’s energy transition analysis, a “Just Transition“ must prioritize the productive use of energy. Reliable electricity should be a driver of development, enabling small businesses to expand and improve service delivery in sectors like healthcare and education.
Meaningful community participation must also be embedded into the design of these projects especially in rural communities. BudgIT’s studies and community engagements provide evidence that engaging local communities in decision-making ensures solutions are tailored to their needs and fosters a sense of ownership that enhances sustainability. There is greater trust, stronger ownership, and better maintenance of infrastructure over time.
Ultimately, Nigeria’s rural electrification challenge is complex, but it is not impossible to solve. The traditional approach of waiting for the national grid to expand everywhere has left too many people behind. Minigrids offer a different path: one that is faster, more flexible, and better suited to the realities on the ground.

Finally, minigrids will not replace the national grid. But they do not need to. What they offer is something just as important: a practical way to reach communities that have waited too long, using solutions that are faster, cleaner, and more responsive to their realities. “Because at the end of the day, electricity is more than wires and poles. It is about dignity. It is about opportunity. And for millions of Nigerians still living in the dark, it is about finally being seen”.
 If Nigeria gets it right with the right mix of innovation, inclusion and accountability, minigrids could help close one of the country’s most persistent gaps, one community at a time.
Rekiyah Mohammed is a Program Officer with the Natural Resource and Climate Governance team at BudgIT.

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