Over the past few years, buying petrol and diesel in Nigeria has become increasingly expensive for households and businesses. When the federal government removed fuel subsidies in mid‑2023, petrol that once sold for about ₦238 per litre jumped to over ₦500 per litre almost immediately, and continued rising.

By October 2024, the average retail price reached about ₦1,184 per litre, nearly doubling within a year. Even as prices eased slightly into 2025, data from June that year showed petrol at an average of ₦1,037 per litre, up roughly 38 percent year‑on‑year, while diesel climbed almost 24 percent over the same period. These prolonged fuel price pressures have significantly affected Nigerians who rely on generators because the national grid remains unreliable.

For decades, generators have been a cornerstone of Nigeria’s energy landscape. Frequent blackouts and low generation capacity meant that many Nigerians accepted the cost of running generators as part of daily life. But as fuel prices climbed, the monthly cost of powering generators became harder to justify, accelerating the shift toward alternative energy sources.

Solar power adoption gains momentum

Nigeria’s solar power market has expanded rapidly. In 2025, the country added 803 megawatts of new solar capacity, a 141 percent increase compared with the previous year, making it Africa’s second‑largest solar market behind South Africa. Most of this growth came from distributed, off‑grid systems, private mini‑grids, and rooftop solar for homes and businesses, accounting for about 96 percent of new installations.

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Solar imports have also surged. By June 2025, Nigeria imported around 1,721 megawatts of solar panels, overtaking Egypt as the continent’s second‑largest importer of solar equipment. China accounted for more than 70 percent of these shipments, reflecting strong domestic demand despite foreign exchange and tariff challenges. Despite these gains, solar still makes up only about 1.6 percent of Nigeria’s total energy mix, highlighting both progress and the potential for further growth.

Why solar is replacing generators

Several factors are driving this shift. Petrol and diesel prices have remained high for years, making running generators expensive. The national grid is often unreliable, leaving many households and businesses dependent on private power solutions. Diesel prices, which reached nearly ₦1,800 per litre in mid‑2025, have further increased generator running costs.

Once installed, solar power systems require little ongoing fuel cost, offering a predictable and more affordable energy source. Rising solar panel imports and increased distribution of off‑grid systems show that supply is beginning to meet growing demand. While installation costs have risen in some segments due to exchange rate volatility and equipment prices, the overall trend reflects a recalibration of energy choices toward more reliable and cost‑effective solutions.

Meiza Nigeria