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Green power for Nigeria’s digital future, By Shuaib S. Agaka

From fintech startups to data centres, the country’s booming tech ecosystem is being throttled by unreliable power, diesel dependence, and soaring energy costs.

byPremium Times
November 1, 2025
Reading Time: 3 mins read
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If Nigeria’s digital revolution is to endure, it must be powered not by diesel fumes but by sunlight, wind, and innovation. Embracing green technology is no longer a policy slogan; it is the lifeline of an inclusive, resilient, and competitive digital economy.

When Kashifu Inuwa, Director-General of the National Information Technology Development Agency (NITDA), took the stage at the 3rd Technology Ecosystem Dialogue (TED 2025) in Abuja, his message was clear and urgent: Nigeria’s digital economy cannot thrive without green technology.

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Addressing a hall packed with innovators, policymakers, and tech entrepreneurs, Inuwa reaffirmed NITDA’s commitment to driving sustainable digital transformation through renewable energy and eco-friendly innovation.

“Green technology is no longer an option; it is a necessity,” he declared.

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He outlined NITDA’s initiatives — Technology and Innovation Hubs, iHatch, IgniteHer, and the Renewed Hope Innovation Nest — which aim to empower youth, women, and small businesses to build scalable, environmentally responsible solutions.

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Inuwa’s warning could not be timelier. Nigeria’s digital infrastructure is expanding far faster than its electricity grid can support. From fintech startups to data centres, the country’s booming tech ecosystem is being throttled by unreliable power, diesel dependence, and soaring energy costs.

Despite government ambitions to source 30 per cent of electricity from renewables by 2030, Nigeria still generates only about 4,000 to 5,000 megawatts for over 200 million people. Homes, offices, and innovation hubs rely on diesel or petrol generators. For tech firms that run 24/7, even a few minutes of power loss can cripple operations and burn through capital.

A recent Manufacturers Association of Nigeria survey revealed that energy self-generation consumes up to 40 per cent of operating costs. Data centres depend on costly hybrid systems, while startups divert scarce funds from innovation to fuel purchases.

Yet, Nigeria is richly endowed with renewable resources — solar radiation averaging 5.5 kWh/m² daily, vast wind corridors, and hydro potential from its rivers. Northern states could host utility-scale solar farms, while coastal and highland regions lend themselves to wind and hydro generation.

Government-backed efforts, such as the Rural Electrification Agency’s Nigeria Electrification Project, supported by the World Bank and African Development Bank, aim to deploy mini-grids for rural communities, clinics, and schools. Properly executed, these could also power innovation hubs, digital parks, and data facilities that form the backbone of the digital economy.

Sustainability expert Dr Krakrafaa Bestman put it succinctly: “Renewable energy must power the next phase of our economic development. If we fail to close the electricity gap with clean energy, our digital ambitions will rest on shaky ground.”

Some progress is emerging. Startups are installing solar systems for SMEs, piloting smart mini-grids, and experimenting with hybrid models that blend renewables with limited grid supply. But policy support must go beyond rhetoric. Frameworks such as the National Renewable Energy and Energy Efficiency Policy (NREEEP) and the National Digital Economy Policy and Strategy (NDEPS) provide guidance, yet regulatory delays, unstable tariffs, and scarce financing still deter investment. Many businesses remain trapped in diesel addiction, even when solar alternatives are viable.

Nigeria can learn from its African peers. Kenya generates 90 per cent of its electricity from renewables — mainly geothermal, hydro, and wind. That stability underpins the rise of M-Pesa, Nairobi’s thriving tech hubs, and regional data centres. Morocco’s Noor Ouarzazate Solar Complex and South Africa’s Renewable Energy Independent Power Producer Programme also demonstrate how clear policy direction, transparent regulation, and public-private collaboration attract billions in clean energy investment.

For Nigeria, however, the road is steeper. Renewable sources are intermittent, and the national grid is ill-equipped for variable inputs. Integrating decentralised mini-grids demands modern grid management, transmission upgrades, and large-scale energy storage — areas still underdeveloped.

Cultural and institutional inertia compounds the problem. Generators are seen as reliable; solar systems, as costly and complex. Awareness of long-term savings and environmental benefits remains limited. Meanwhile, entrenched interests — business magnates and political figures heavily invested in diesel imports — quietly resist change.

Energy transitions everywhere are slow, but Nigeria cannot afford paralysis. Pragmatic steps — scaling community mini-grids, offering tax incentives for green investors, and prioritising clean power for critical tech infrastructure — would build momentum. By targeting realistic milestones, the country can shift gradually from fossil dependence toward a sustainable energy foundation.

If Nigeria’s digital revolution is to endure, it must be powered not by diesel fumes but by sunlight, wind, and innovation. Embracing green technology is no longer a policy slogan; it is the lifeline of an inclusive, resilient, and competitive digital economy.

Shuaib S. Agaka is a tech journalist and digital policy analyst based in Kano.

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