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Solar power lights up the lives of Nigerians

Islamic finance and crowd funding brings clean energy to underserved communities

April 8^th, 2022

Akiwumi Adeola runs a restaurant, the Sagamu Boys Club, in south-western Nigeria’s Ogun State.

Like many Nigerians, who aren’t on the national electricity grid, or if they are, get service for only a few hours a day, she had been using a petrol generator for backup power. It was costly—nearly US$4 every four days—not to mention dirty and noisy.

Akiwumi is not alone. Reliable electricity is out of reach for most Nigerians. An estimated 70 percent of the country’s more than 215 million citizens aren’t connected to the national grid. And of those that are, only 25 percent have at least four hours of power every day.

Most people rely on backup generators. It is estimated that there are 60 million diesel and petrol generators in the country. But solar power is a cleaner and quieter option, and since only 13.6 percent of Nigerians have solar, there is a large untapped market.

Solar power lights up the lives of Nigerians

UNDP is working with the Islamic Development Bank (IsDB) and Trine, a Sweden-based crowd investment platform that focuses on sustainable solar investments, to see how increasing the range of solar powered homes and workplaces can contribute to the Sustainable Development Goals and make everyday life better for Nigerians.

Greenlight Planet is a for-profit company that designs, distributes and finances solar home systems specifically for underserved, off the grid communities in Nigeria. Through three campaigns launched in 2021, the company has received US$3.27 million, US$1.9 million directly from the IsDB and US$2.18 from Trine’s crowd investors.

Fatuma Toneye runs her own business and supports her children.

She can keep her pharmacy open for three extra hours a day, and the solar power is quieter, cheaper and less disruptive.

“Solar power is saving me money,” she said. “The money I previously spent on petrol for the generator now pays for additional fuel for my vehicle and for more stock for the shop.”

Fatuma had never taken out a loan before. The weekly payment of about US$2 is manageable and she’s on her second round of financing, to get solar power at home.

One of the most significant benefits for her has been the extra time it has allowed her two children to study in the evenings.

“My children’s education is very important to me, and the light for extra study hours is one of the most significant benefits of having solar power at home.”

Solar-powered electricity is enabling shop owners to run at a lower cost, and open to customers for longer. Photo: UNDP Nigeria

It is estimated that 120 million Nigerians depend on kerosene for lighting. This requires a crippling fuel subsidy, and it’s bad for the environment as well as for health and safety. Something that Kazeem Victoria knows only too well.

The 74-year-old grandmother is raising three school-aged children. She bought a solar system so that they could study. One of them, a 13-year-old, wants to be an engineer. Kazeem says engineering will require hard work and a lot of study, and safe electricity is key to her peace of mind.

“Solar power provides me comfort knowing that my grandchildren are reading in a safe environment, free from the risks of kerosene and fires. I’m confident that my grandson will become an engineer one day.”

Solar powered lights serve the wider community in multiple ways, including students. Photo: UNDP Nigeria

Odukoga Opeyemi has also stopped relying on a petrol generation. He has bought solar powered units for his home and his tailoring business. Most of his business consists of school uniforms, and sometimes he works late at night fulfilling orders. More work means more money, and the light provides better security.

Odukoga has kept his old petrol generator, however, and still finds it helpful.

“I use it as a stool to place things on.”

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