Nigeria’s First Commercial Undergrid Minigrid

This project update from RMI describes the performance of Nigeria's first commercial undergrid minigrid in Mokoloki, Ogun State. Launched in February 2020 through a tripartite partnership between the Mokoloki community, Nayo Tropical Technology, and the Ibadan Electricity Distribution Company (IBEDC), the project provides reliable solar power to a community that previously had unreliable grid access. The report highlights the project's financial viability, technical stability, and its role in stimulating local economic growth.

• The Mokoloki undergrid minigrid has demonstrated strong financial performance, with revenue doubling within the first 18 months of operation. The average revenue per user is twice that of a comparable off-grid site in Nigeria, and operating costs during the first 15 months were approximately one-third of total revenue. Additionally, collection rates increased from roughly 20% prior to the minigrid to 100% currently, as all customers now use prepaid meters.
• Technically, the minigrid consists of 100 kWp solar PV, 194 kWh battery storage, and an 88 kW diesel backup generator, producing an average of over 5,500 kWh of solar energy per month. It has significantly improved reliability; while IBEDC previously provided only four to five hours of electricity daily, the minigrid has never had an outage lasting five hours. The primary technical challenge is occasional loss of internet connection, which affects payments.
• The minigrid is driving local economic growth by supporting productive uses of electricity. While commercial customers represent only about 9% of the total customer base, they contribute 45% of the total revenue. Examples of supported businesses include welders, bakers, and mills, and the project has attracted new businesses, such as a soybean-to-milk processing operation, to the community.
• The project utilized a first-of-its-kind tripartite agreement between the community, the minigrid operator (Nayo Tech), and the distribution utility (IBEDC). This arrangement benefits IBEDC by eliminating financial and technical losses associated with serving the community and providing fixed annual payments from the operator. Nayo Tech has met 100% of its financial obligations to IBEDC.
• Customer adoption has grown steadily, starting with over 200 initial sign-ups and increasing by more than 20% to nearly 300 connections. To accommodate this growth, Nayo Tech has begun a planned expansion to approximately double the capacity of the PV, inverter, and battery systems.

APA

RMI (2022). Nigeria’s First Commercial Undergrid Minigrid. https://rmi.org/app/uploads/2022/03/mokoloki_anniversary_report.pdf

Chicago

RMI. Nigeria’s First Commercial Undergrid Minigrid. 2022. https://rmi.org/app/uploads/2022/03/mokoloki_anniversary_report.pdf.

Wikipedia

{{cite report |author=RMI |title=Nigeria’s First Commercial Undergrid Minigrid |date=February 2022 |url=https://rmi.org/app/uploads/2022/03/mokoloki_anniversary_report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2022nigerias, author = {{RMI}}, title = {{Nigeria’s First Commercial Undergrid Minigrid}}, institution = {RMI}, year = {2022}, month = feb, url = {https://rmi.org/app/uploads/2022/03/mokoloki_anniversary_report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }