Nigeria’s Niger State government will partner with the Islamic Development Bank (IsDB) to develop a US$163 million solar electrification project aimed at boosting power supply and supporting agricultural and industrial growth, state officials said on Tuesday.
The project will involve the construction of a 100-megawatt solar power facility in the north-central state, to be built on around 200 hectares of land. Once completed, the plant is expected to supply electricity to several communities across Niger State, which has struggled with limited and unreliable power supply.
Governor Umaru Mohammed Bago said the project would complement the state’s broader development agenda, particularly its investments in agriculture and agro-processing. Improved access to electricity would help support food production, storage and processing, while also encouraging industrial activity and expanding revenue generation, he said.
Niger State is one of Nigeria’s largest agricultural producers, but like much of the country, it faces persistent electricity shortages that constrain productivity and investment. Nigeria generates around 4,000 megawatts of electricity for a population of more than 200 million people, far below estimated demand, with many businesses and households relying on costly diesel generators.
The solar project forms part of efforts by sub-national governments to tap renewable energy as an alternative to the national grid, which has suffered frequent system collapses and chronic underinvestment. Solar power has gained traction in Nigeria due to the country’s high solar irradiation and growing demand for off-grid and embedded power solutions.
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Daniyar Abylkhan, leader of the Islamic Development Bank’s task team for the project, said the bank was leveraging Niger State’s abundant sunlight to support clean energy generation while deepening its long-standing development partnership with the state.
The Islamic Development Bank has financed a range of projects in Nigeria, including in energy, agriculture, transport and healthcare. In recent years, the lender has increased its focus on renewable energy and climate-resilient infrastructure across Africa, in line with global efforts to cut carbon emissions and expand access to electricity.
Usman Abubakar, secretary to the Niger State government, said discussions with the bank marked the formal start of the project preparation process. This phase will include technical studies as well as environmental and social impact assessments, which are required before final approval and disbursement of funds.
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“Project preparation is a critical step to ensure sustainability, compliance and value for money,” Abubakar said, adding that the assessments would determine the final design, implementation timeline and financing structure.
Officials did not provide a timeline for when construction would begin or when the project would become operational. Large-scale power projects in Nigeria often face delays due to regulatory approvals, financing arrangements and land acquisition issues.
Analysts say the project highlights the growing role of renewable energy in Nigeria’s power mix, particularly at the state level. Several Nigerian states have signed agreements in recent years with development lenders and private investors to develop solar and hydroelectric projects to serve local economies and reduce dependence on the national grid.
If completed, the Niger State solar project would rank among the larger sub-national renewable energy initiatives in the country. Beyond electricity supply, officials say the project is expected to create jobs during construction and operation, while supporting small businesses and rural communities through improved energy access.
Nigeria has committed to increasing renewable energy generation as part of its climate targets, including a pledge to reach net-zero emissions by 2060. However, progress has been uneven, with fossil fuels still dominating power generation.
For Niger State, the partnership with the Islamic Development Bank is seen as a step toward addressing energy constraints that have long hindered economic diversification and development.
