Sun King secures $80 million to electrify 4 million Nigerian households

Sun King, the world’s largest off-grid solar energy company, has secured an $80 million naira-denominated loan to expand access to electricity across Nigeria, a country with the highest number of people living without power globally. The funding is backed by a World Bank-supported programme and includes contributions from the International Finance Corporation (IFC) and Stanbic IBTC Bank.

The initiative aims to provide solar energy solutions to 4 million Nigerian households over the next four to five years, addressing a critical energy access gap in Africa’s most populous country.

Nigeria faces a severe electricity crisis, with about 85 million people (over 40% of the population) lacking access to reliable power, according to the World Bank. The national grid, plagued by outdated infrastructure and inconsistent supply, delivers only about 5,000 megawatts daily, far below the 30,000 megawatts needed to meet demand. As a result, many Nigerians rely on costly and polluting fuel-powered generators, which produce more than twice the power of the grid.

Sun King’s intervention seeks to offer a sustainable alternative, providing affordable solar home systems and appliances to rural and peri-urban communities.

The $80 million loan will enable Sun King to scale its operations in Nigeria, where it has already connected over 1.2 million households to solar power since entering the market in 2018.

The company’s pay-as-you-go model allows customers to purchase solar systems through affordable instalments, making clean energy accessible to low-income families. Sun King’s product range includes solar lanterns, home lighting systems, and energy-efficient appliances like fans and televisions, all designed to meet the needs of off-grid households.

The company estimates that this expansion will create 10,000 jobs, including roles for local sales agents and technicians, boosting economic opportunities in underserved areas.

Sun King’s commitment to addressing Nigeria’s energy poverty

The company’s commitment will further boost the growing optimism about renewable energy solutions in Nigeria, where solar power is seen as a viable path to universal electrification.

Sun King’s efforts align with Nigeria’s broader renewable energy goals. The government has set a target of achieving net-zero carbon emissions by 2060 and is promoting off-grid solutions to complement grid expansion.

In recent years, Nigeria has issued green bonds to fund environmental projects, including a $186 million offering planned for 2025 to enhance forest cover and support clean energy initiatives. The World Bank and IFC have also intensified support for Nigeria’s energy sector, with programmes like the Distributed Access through Renewable Energy Scale-up (DARES), which aims to provide electricity to 17.5 million Nigerians through private-sector-led solutions.

Despite the promise, challenges remain. Nigeria’s off-grid solar market faces hurdles such as high import duties on solar components, currency volatility, and logistical barriers in reaching remote areas. Additionally, some critics argue that off-grid solutions, while impactful, cannot fully replace the need for a robust national grid.

Sun King’s track record offers hope. Globally, the company has provided solar energy to 29 million people across Africa and South Asia, with operations in Kenya, Uganda, and India. In Nigeria, its partnerships with local financial institutions and community-based distribution networks have driven rapid growth. The new funding will allow Sun King to expand its footprint, particularly in northern Nigeria, where electrification rates are among the lowest.

As Nigeria grapples with its energy crisis, Sun King’s bold move represents a significant step toward sustainable development. By leveraging private-sector innovation and international financing, the project could serve as a model for other African nations facing similar challenges. With 4 million households in its sights, Sun King is poised to illuminate Nigeria’s future, one solar panel at a time.