Abstract

Acute energy poverty in Nigeria's low-income urban dwellings is typified by an unstable grid supply, reliance on expensive diesel generators and kerosene, high energy costs, poor indoor air quality (IAQ), acute respiratory infections (ARIs), and environmental degradation. The issue of inexpensive and unsustainable energy access in densely populated areas is examined in this critical synthesis, along with the disparity in equitable renewable deployment in the face of donor-driven rural policy bias, extreme foreign exchange (FX) volatility, hidden import/customs costs, and spatial/tenure constraints in slums. Solar photovoltaic (PV)-dominant hybrid energy systems (HES), interconnected minigrids, community-owned models, waste-sorting cooperatives for biogas, and FX-hedged financing mechanisms (e.g., Central Bank of Nigeria local- currency green bonds, customs duty exemptions for low-income solar micro-utilities). The analysis, based on high-impact evidence from 2023-2026, emphasises solar hybrids' urban practicality, yielding 25-35% energy cost savings, 6–8-year paybacks, 35-95% CO₂ emission reductions, and health co-benefits through kerosene replacement and enhanced IAQ. Barriers such as Naira depreciation (>70% import cost inflation), rural-biased policies (REMP/NREEEP/REA focus on unserved rural areas), and slum-specific limitations perpetuate a two-tier energy equity trap. Band A grid tariffs (~₦206-209/kWh) remain cheaper for connected elites than hybrid LCOE (~₦250/kWh) for the underserved poor. Case studies from Lagos, Abuja, Port Harcourt, and Kano (Zawaciki undergrid minigrid) show technical feasibility, productive usage gains, and resilience, but also highlight subsidy dependency, private-utility collaborations, and community governance for scale. The research recommends a paradigm shift: shifting the Rural Electrification Agency's focus to "Urban Grid-Edge Reliability" initiatives, introducing FX-hedged funding and customs exemptions, and expanding community-led models. Such changes have the potential to transform low-income urban housing from deprived areas into resilient, inclusive clean energy models that are consistent with national development goals and global environmental imperatives.