The Business NG - February 24, 2025

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USAID Exit Threatens Nigeria’s Solar Future

Nigeria’s renewable energy push faces a major setback following the withdrawal of the United States Agency for International Development (USAID) from the sector. The exit endangers years of rural electrification progress, potentially leaving millions in darkness.

With over 85 million Nigerians still lacking electricity, solar power has been a critical solution, especially in rural areas where the grid is absent. USAID’s $150 million investment in off-grid initiatives like Power Africa and Electrify Nigeria has driven access, lowering costs and expanding usage.

Without this support, solar product prices could rise by 20–40%, shutting out over 30 million people. Rural communities may revert to kerosene and firewood, worsening health risks and deforestation. Additionally, a $500 million investment shortfall threatens ongoing and future projects, putting Nigeria’s clean energy ambitions at risk.