A new World Bank report has revealed that Nigeria’s decentralised renewable energy drive has connected nearly six million people to power through more than 170 mini-grids and 1.2 million stand-alone solar systems, even as the country continues to battle the largest electricity access gap in the world.

The newly released report, “Tracking SDG7: The Energy Progress Report 2025”, obtained on Friday, recognised Nigeria as a rising star in the adoption of clean energy solutions, despite staggering challenges in grid-based electricity supply.

According to the report, the mini-grid and solar deployments were part of efforts by Mission 300, a global initiative aimed at accelerating energy access through decentralised solutions.

“These technologies provide reliable, clean, and affordable power, offering faster deployment and supporting local economic development in Africa’s poorest and most isolated regions offering faster deployment and supporting local economic development. For instance, Nigeria’s mini-grid projects have connected nearly 6 million people through more than 170 mini-grids and almost 1.2 million stand-alone solar systems,” the report stated.

The Africa Mini-Grid Developers Association also noted in the report that Nigeria now hosts one of the most vibrant mini-grid markets on the continent.

“Mini-grids are growing in size and gravitating toward markets with enabling financial and regulatory frameworks. Nigeria is leading that shift,” AMDA said in its 2025 market trends report.

Between 2022 and 2024, the average number of connections per mini-grid in Nigeria nearly doubled, from 244 to 458.

This growth, the report said, was largely driven by improving investor confidence, maturing regulation, and increased concessional financing.

In a further boost to the local economy, the mini-grid sector has also become a significant source of employment. AMDA disclosed that 27 mini-grid developers created over 6,000 jobs in the last four years, most of them within the rural communities where the systems were deployed.

It explained, “Mini-grids are growing in size and gravitating toward markets with an enabling financial and regulatory framework. The average number of connections per mini-grid has grown from 244 per site reported in 2022 to 458 in 2024.

“During this same period, mini-grid developers have flocked to markets with enabling ecosystems for mini-grid development, especially in Nigeria. Mini-grids are significant contributors to job creation in Africa. Just 27 mini-grid developers surveyed created more than 6,000 jobs over the past four years, with the majority of them in the communities where the mini-grids are located.

“While mini-grid costs have decreased globally, capital expenditure for deployment in Sub-Saharan Africa remains stubbornly high compared to other regions. This regional discrepancy reflects factors like high logistics costs and low population density, but improved supply chain efficiency, economies of scale, and more favourable tax treatment can help reduce costs.”

Despite the progress, however, Nigeria remains at the epicentre of a global electricity crisis. The World Bank report revealed that 86.8 million Nigerians still lack access to electricity, the highest number globally. For the third consecutive year, Nigeria retained its position as the country with the largest electricity access deficit in the world.

This figure, however, contradicts recent claims by the Minister of Power, Adebayo Adelabu, that 150 million Nigerians now have access to adequate electricity, while an estimated 80 million still lack a reliable power supply.

The report noted that just 61 per cent of Nigerians had access to electricity last year, while access to clean cooking energy remained alarmingly low at 26 per cent.

“Once again, Nigeria (86.8 million), the Democratic Republic of Congo (79.6 million), and Ethiopia (56.4 million) accounted for roughly one-third of the global electricity access deficit. In total, the 20 countries with the largest deficits made up 76 per cent of the global total, with 18 of them located in Sub-Saharan Africa,” the report noted.

The Bretton Woods institution further noted that financial support for Nigeria’s DRE expansion also increased sharply in 2023. The country received $829m in international public flows, making it the fifth largest recipient globally, a dramatic leap from being outside the top 30 in 2022.

“Nigeria’s upward movement reflects growing investor and donor confidence in its clean energy sector,” the report said.

A massive portion of that funding, $698m (84 per cent), came from the World Bank’s Nigeria Distributed Access Through Renewable Energy Scale-Up Project, a concessional loan designed to accelerate the deployment of mini-grids and stand-alone solar systems.

Another $35m grant from the European Union is supporting the EU-Nigeria Cooperation Programme for Sustainable Energy Sector, which aims to develop a large-scale solar PV plant and small-hydro solutions to serve agro-industrial zones over a five-year period (2023–2028).

But even as billions pour in, challenges persist. AMDA warned that capital costs in Sub-Saharan Africa remain among the highest globally, due to high logistics expenses, weak infrastructure, and low population density.

“While global mini-grid costs are declining, Sub-Saharan Africa, including Nigeria, is still contending with elevated deployment costs. Efficient supply chains, economies of scale, and better tax regimes can reverse this trend,” the report stated.

Moreover, disbursement of pledged donor funds has been slow and fragmented. “Although more than $9bn in concessional capital has been committed globally over the past five years, funding disbursement remains sluggish, delaying the rollout of life-changing mini-grid projects,” the report noted.

New financing strategies are also emerging to de-risk investments. These include blended finance, escrowed grant payments, and monetisation of environmental benefits, tools that could help attract corporate and institutional investors into Nigeria’s clean energy market.

Regulation, however, remains a bottleneck. The slow pace of regulatory approvals, according to the report, threatens to stall the sector’s momentum. “Streamlining regulatory processes and addressing bureaucratic bottlenecks will be critical to achieving energy access targets on time,” the report noted.