Power to prosper: How energy transition can reduce poverty in Nigeria

In many parts of Nigeria, when night falls, darkness takes over. Millions of families still rely on candles, kerosene lamps, or even firewood for lighting and cooking. For businesses, power cuts are so common that many rely on noisy, expensive generators to keep going. The lack of reliable electricity is more than an inconvenience; it’s a barrier to progress.

But there is hope. The global move toward cleaner energy sources — known as the energy transition — could change this story. For Nigeria and other African countries, switching from fossil fuels to renewable energy like solar, wind, and hydro offers more than just environmental benefits. It can also be a powerful tool to reduce poverty.

“According to international studies, investments in renewable energy create more jobs per dollar spent than investments in fossil fuels. That means more opportunities for Nigerians to earn a living and lift themselves out of poverty.”

Read also: UK a strong partner in Nigeria’s energy transition – Adenuga

Energy poverty and financial poverty are linked
Energy poverty means not having enough electricity to meet basic needs. It affects health, education, business, and the general quality of life. In Nigeria, nearly 90 million people still live without access to electricity. In rural areas, that number is even higher.

When children cannot read at night, learning suffers. When clinics can’t store vaccines or power medical equipment, lives are at risk. When businesses spend more on fuel than on salaries, they hire fewer people. In all of these ways, lack of power worsens financial poverty.

The opportunity in clean energy
Nigeria is blessed with sunshine almost all year round. That’s a major advantage when it comes to solar power. Solar panels don’t need to be connected to the national power grid. This makes them ideal for remote villages where grid extension is too costly.

The same goes for wind and mini-hydro power in some areas. These sources can be used to power small communities, schools, health centres, and small businesses, all of which create jobs and improve lives.

More importantly, clean energy projects can be rolled out faster and cheaper than traditional large-scale power stations. This makes energy access more inclusive and within reach for poorer communities.

Creating jobs through transition
One of the biggest fears about the energy transition is job loss in the oil and gas industry. While that’s a valid concern, the clean energy sector also creates jobs and lots of them.

From manufacturing solar panels to installing and maintaining systems, renewable energy offers new roles for engineers, electricians, technicians, and even local artisans. Training programmes can help former oil workers and young people in rural areas transition into these new roles.

According to international studies, investments in renewable energy create more jobs per dollar spent than investments in fossil fuels. That means more opportunities for Nigerians to earn a living and lift themselves out of poverty.

Read also: Germany backs Nigeria’s push for hydrogen needs, green energy transition

Lowering the cost of living
Another way energy transition can fight poverty is by cutting energy costs. Today, Nigerians spend a large portion of their income on fuel for generators or transport. Clean energy, especially solar, offers cheaper and more stable energy in the long run. When energy is affordable, families can save more, businesses can grow, and governments can redirect subsidies to education and healthcare.

What needs to happen
To make this work, government policies must support clean energy investments. Financial institutions need to offer low-interest loans for renewable energy projects. And awareness campaigns should help people understand how clean energy works and how it benefits them.

Communities must be involved in the planning process. When people feel ownership of a project like a solar mini-grid in their village, they are more likely to maintain and protect it.

Conclusion
Energy transition is not just about saving the planet; for Nigeria, it’s about saving people from poverty. With the right policies, investments, and community involvement, clean energy can light up homes, power businesses, and unlock the potential of millions who have been left behind. It’s time to stop seeing energy as a luxury and start treating it as a right.

Olugbenga Olaoye is a seasoned professional with extensive experience in the oil and gas industry. He is a PhD candidate specialising in energy economics and holds a master’s degree in public service from the Clinton School of Public Service, USA. He writes from Fort Worth, Texas.