Today in Nigeria 65 percent of the population—over 100 million people—does not have access to reliable electricity. The situation is even more dire in rural areas, where only 36 percent of inhabitants have access to a centralized power source. While demand for rural electrification is increasing, distribution companies are unable to provide sufficient power to rural areas due to low generation capacity and underdeveloped transmission and distribution networks. The market is ripe for rural electrification, and minigrids offer a cost-effective opportunity to do just that.

Minigrids offer an innovative yet practical solution to rural electrification challenges. They can circumvent many of the problems with electricity from the centralized grid, while providing cost-effective power. Today, tens of thousands of communities in remote regions of Nigeria can be cost-effectively served by minigrids while providing investors a good return on investment.

In the Minigrid Investment Report, we highlight key recommendations through which different stakeholders can take action to promote market development.