Jobs Generated by the Nigeria Electrification Project (NEP)

Introduction

This page summarises findings from the World Bank/ESMAP case study on the Nigeria Electrification Project (NEP), focusing on the employment effects of expanding decentralized renewable energy through mini-grids, solar home systems and productive use of energy. The study demonstrates that investment in clean energy infrastructure can stimulate significant local job creation, both directly in installation/maintenance and indirectly in productive sectors enabled by reliable power.

Background

Nigeria’s national grid has long struggled with insufficient generation and poor reliability. The NEP, implemented by the Rural Electrification Agency (REA) with World Bank/ESMAP support, set out to expand off-grid renewable energy through: Mini-grid development for rural and peri-urban communities Solar home systems (SHS) distribution for households and small businesses Productive use appliance financing to enhance demand and improve livelihoods

Methodology of the Case Study

Analysis of employment generated by firms supported through the NEP. Surveys and interviews with developers, operators, and community members. Quantification of jobs in direct installation, operation and maintenance, as well as induced and indirect jobs from expanded economic activity.

Key Findings on Job Creation

Scale of jobs: Over 5,000 direct jobs created across participating developers (technicians, engineers, sales, administration). Tens of thousands of indirect jobs enabled in agriculture processing, retail, services, and small manufacturing due to reliable electricity. Gender and youth employment: Youths constituted a majority of newly hired technicians. Women increasingly participated in sales and distribution roles, though still underrepresented in technical work. Sustainability of jobs: Operation & maintenance roles are ongoing and locally anchored, ensuring continuity of employment. Induced jobs linked to energy access (shops, milling, refrigeration, ICT services) showed strong livelihood improvements.

Economic and Social Impacts

Electrification through NEP increased business revenues, especially in agro-processing, retail and cold storage. Households reported improved quality of life and opportunities for home-based enterprises. Communities noted reduced migration to urban centers as rural livelihoods became more viable.

Policy and Implementation Lessons

Integrating job creation targets into electrification programs enhances accountability. Productive use interventions (appliance financing, business training) maximize employment benefits of energy access. Gender-sensitive strategies (capacity building, targeted recruitment of women technicians) should be expanded. Sustainable finance (results-based financing, concessional loans) is essential to scale developer participation.

Practical Recommendations

Scale up decentralized renewable energy as a core pillar of job creation strategies in Nigeria. Strengthen local technical training institutions to supply skilled workforce. Embed gender inclusion targets and monitoring in energy access programs. Pair electrification with agricultural and SME support policies to magnify employment effects.

Further Reading

World Bank/ESMAP (2022). Job Creation in the Nigeria Electrification Project. Washington, DC: ESMAP / World Bank. Available at: https://www.esmap.org/Job-Creation-in-Nigeria

Attribution & Licence

This page summarises material from the World Bank/ESMAP (2022) case study on the NEP. The original document is licensed under Creative Commons Attribution 3.0 IGO (CC BY 3.0 IGO).