The World Bank Group's Lighting Africa programme has in many ways contributed to laying the foundation for a vibrant household solar market in Nigeria through its market development programme activities that also includes support for MFIs to provide financing to consumers and retailers in rural areas. A major milestone was achieved in June when the Standards Organization of Nigeria adopted the IEC / Lighting Global quality standards. These standards will play a critical role in providing consumers, the supply chain, financial instructions and investors with the confidence and reassurance that they need to invest and embrace off-grid solutions.

The Nigerian Government is also addressing clean cooking in its plan with a commitment to implement the National Liquified Petroleum Gas (LPG) expansion programme to support the transition from traditional fuels for cooking – such as kerosene and wood – to cleaner LPG fuel. The project will engage with the private sector to support the transition.

Earlier this month, Yemi Osinbajo, Vice President of the Federal Republic of Nigeria, reinforced the country’s commitment to accelerate the transition to clean, affordable, reliable and renewable energy; these were, he said, the “first steps to new jobs and a cleaner, healthier environment”.

Strong foundations

Nigeria already has a strong set of institutions and partnerships ready to support turning this commitment into reality. The country's Rural Electrification Agency (REA) has played a leading role in the pandemic, using its knowledge, network and infrastructure to help deploy off-grid energy solutions that can provide lifesaving electricity access to the more remote health clinics across the country.

REA also leads the Nigeria Electrification Project, which is aimed at increasing electricity access to households and micro, small and medium enterprises (MSMEs), as well as students and patients at federal universities and university teaching hospitals. The World Bank has provided a $350 million facility and the African Development Bank an additional $200 million facility to the Nigerian government for off-grid development as part of the Nigeria Electrification Project (NEP). This investment is expected to leverage over $81 billion in additional funding from the private sector – and in the wake of COVID-19, these investments will become even more important to help speed and scale progress.

Nigeria has also explored another important measure: moving towards cost-reflective electricity tariffs. The instinct may be to undercut the cost of electricity to the consumer as a quick-fix solution to mitigating the economic challenges of the pandemic or gain political traction. However, this can undermine the long-term financial stability of, and investments into, the energy sector. In the long run, allowing cost-reflective tariffs allows utilities to perform better, improve the reliability of their service and increase investments in energy access and clean energy. The Nigerian government has made commitments to increase tariffs to cost-reflective levels through its Power Sector Recovery Program (PRSP), an important foundation for an economically viable – and investment-ready – energy sector.

A moment like this will not come again. Countries that follow Nigeria’s example and invest in sustainable energy as part of an ambitious 'recover better' strategy will be rewarded with resilient economic growth, new jobs, and sustainable energy for all in the long-term.