A new World Bank report, Tracking SDG7: The Energy Progress Report 2025, has revealed that mini grids and decentralized renewable energy systems have provided electricity to nearly six million people in Nigeria who previously did not have access.
An estimated 170 mini-grids and 1.2 million stand-alone solar systems were instrumental in connecting millions of Nigerians to electricity and helped reduce the energy access backlog of Nigeria, currently battling as the largest electricity access gap in the world with about 86.8 million people lacking access to electricity.
The World Bank report highlighted that these mini-grid and solar deployments were driven by Mission 300, a global initiative working to expand energy access through decentralized 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,” the report states.
According to the World Bank, about 61% 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 Africa Mini-Grid Developers Association (AMDA) 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,” the report by Punch newspaper quoted AMDA as saying in its 2025 market trends report.
In the period between 2022 and 2024, the average number of connections per mini-grid in Nigeria nearly doubled, rising from 244 to 458. According to the report, this growth was primarily fueled by stronger investor confidence, more mature regulations, and greater access to concessional financing.
Beyond expanding energy access, these investments are stimulating local economies and creating jobs. According to AMDA, 27 mini-grid developers have generated over 6,000 jobs in the past four years—primarily in rural communities where the projects operate.
“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,” the report said.
