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Nigeria’s energy deficit is quite evident; over 84 million Nigerians live without access to electricity, while countless oth­ers rely daily on diesel and petrol generators due to unreliable elec­tricity supply and grid instability. While the cost of powering these generators annually is quite sig­nificant, they also pollute the en­vironment and pose threat to hu­man health, stifling productivity. Yet, the country is blessed with abundant renewable resources (especially solar) that stand as a viable means to addressing Ni­geria’s energy crisis but remain under-utilized. The missing link is financing.

Estimates suggest that Nigeria needs around nine to ten billion dollars annually until 2030 to achieve universal electricity ac­cess under its Energy Transition Plan. Clearly, public funds and do­nor contributions alone cannot meet this need. The key lies in unlocking private capital from commercial banks, institutional investors, and other financiers. To attract this much-needed in­vestment, several priorities stand out.

First, it is important to de-risk the renewable energy sector. In­vestors are naturally cautious and in Nigeria, there are con­cerns about currency volatility, unclear regulations, and repay­ment challenges. Innovative measures such as guarantees, blended finance, and insurance products can help share risks, giving investors greater confi­dence to participate.

Second, there is the need to bring forward more bankable projects. Many renewable energy ideas stall because they lack sol­id financial structures, credible customers, or regulatory back­ing. Renewable energy project developers must be supported to prepare projects in ways that meet investor requirements and ensure long-term viability.

Third, we have to design tai­lored financial tools for Nigeria’s market. Renewable energy proj­ects are not like conventional busi­nesses in that they usually require patient capital which means lon­ger repayment periods and flexible structures. Local financial institu­tions should also create products such as ‘pay-as-you-go’ or ‘lease-to-own’ models that reflect how re­newable energy projects actually generate income.

In addition, we need stronger policy and regulatory frame­works. Streamlined approvals, enforceable contracts, predict­able tariffs, and better coordina­tion among regulators can make Nigeria a far more attractive des­tination for private investment.

Finally, leverage climate fi­nance. Instruments such as green bonds, sukuks, and carbon mar­kets represent an untapped pool of funding. When combined with private capital, these tools can significantly accelerate renew­able energy expansion.

The future of Nigeria’s re­newable energy sector depends not only on technology but also on finance. By reducing risks, strengthening policies, and be­ing innovative in our financial design, the country can unlock billions in private investment. The prize is enormous; we will have affordable and reliable ener­gy for households and business­es, reduced dependence on fossil fuels, and a cleaner, more sustain­able economy. The path forward is clear, if we will take it.

*Motunrayo Akinfala writes from Lagos