Most Nigerians don’t enjoy reliable grid power, so individuals and businesses end up bearing the cost of keeping lights on, machines running, and productivity uninterrupted. According to the *Federal Government*, in 2023 Nigerians spent about ₦16.5 trillion on diesel, petrol, and generators just to meet their electricity needs — far more than the roughly ₦1 trillion earned by the formal electricity sector itself.
For many households and small businesses, generator fuel alone is a major drain. Studies and industry figures show that running a generator for typical daily use easily burns ₦60,000–₦150,000 per month just on fuel and basic running costs** — and these figures assume “only” about 6–8 hours of daily operation. In more realistic usage patterns where generators run half the day or longer, the monthly fuel bill can quickly rise beyond ₦200,000–₦300,000
Maintenance adds further to the burden. Generators require frequent oil changes, filter replacements, repairs, and sometimes full engine overhauls. Add this to the need for spare parts and servicing, and the true cost of keeping a generator alive goes up by tens of thousands of naira each. Across the nation, reports have estimated that Nigerians may be spending around $10 billion (tens of trillions of naira) annually on generator maintenance and fuel — an enormous and largely avoidable expense.
Solar and battery-based systems present a very different cost structure. Unlike generators, the “fuel” for solar — sunlight — is free. Although the upfront investment for a reliable solar + inverter + battery setup can range from several hundred thousand naira for a small home system to ₦10 million–₦20 million or more for a high-capacity commercial setup, once installed it eliminates ongoing fuel costs
For example, in documented real-life cases, a 5 kVA hybrid solar system costing about ₦4 million was saving its owner over ₦300,000 a month in fuel and electricity charges, meaning a break-even point in less than two years. Solar systems typically last 15–20 years or more**, with batteries needing replacement only every few years at a fraction of ongoing generator fuel costs.
Battery costs are part of the solar investment but, unlike generator fuel, batteries represent a *lasting value*. A quality inverter battery — whether lead-acid or lithium-ion — requires a one-time purchase and periodic replacement every few years, but its contribution to uninterrupted power is huge and its total cost over time is often lower than what businesses spend repeatedly
To summarize the typical spending patterns in Nigeria today:
Fuel & Generator Running Costs: ₦60,000 –₦300,000+ per month depending on usage, with annual national spending on generator fuel and generators in the trillions of naira.
Generator Purchase Costs: ₦150,000 up to several million naira depending on size and quality.
Solar + Inverter + Battery Upfront: From several hundred thousand naira for small systems to ₦10 million+ for larger business installations, with minimal ongoing “fuel” costs after installation.
Solar Running Costs: Mostly limited to occasional cleaning and battery upkeep — a tiny fraction compared to generator fuel bills.
These figures show a stark economic reality: Nigerians — and especially businesses — are spending far more on short-term, inefficient power alternatives than they would if they invested upfront in solar and inverter systems. Not only does solar reduce monthly operating expenses, it also protects businesses from fuel price volatility, equipment damage from unstable power, and the hidden costs that blackouts impose on productivity and reputation.