Digital technologies are increasingly becoming critical to helping households and businesses turn electricity access into productive economic activity in Nigeria and other emerging markets, according to a new report by the Global System for Mobile Communications Association (GSMA).
The report, titled Productive Use of Energy across Energy Systems: A Review of Policy and Digital Enablement in India, Kenya, Uganda and Nigeria, examined how digital solutions can help bridge the gap between having access to electricity and using it to generate income, improve productivity and support business growth.
The GSMA noted that while electricity access has expanded significantly across low and middle-income countries over the past decade, connectivity to the grid or another energy source does not necessarily translate into meaningful electricity consumption.
It said millions of households and enterprises remain unable to use electricity productively because supplies can be unreliable, electricity and appliances can be unaffordable, while users may also lack the skills, financing, market access and other support required to turn electricity into higher productivity and income.
According to the report, the World Bank estimates that 447 million people classified as electrified globally do not actually use electricity, highlighting the gap between electricity connections and sustained utilisation.
The challenge is particularly pronounced in sub-Saharan Africa, where nearly 600 million people remain without electricity access. Globally, about 730 million people are still unconnected, with the pace of electrification struggling to keep up with population growth and the rising cost of reaching remote and low-income communities.
Digital tools reshape energy use
The GSMA identified five major digital levers that can help energy providers and users move from basic electricity access towards productive use.
These include digital planning tools that improve site selection and visibility of electricity demand; system optimisation tools that enhance reliability and load management; digital metering and data systems that support accurate billing and customer segmentation; remote monitoring tools that improve the performance of energy assets; and digital customer platforms that facilitate payments, financing and service delivery.
The report said these technologies are helping energy providers become more responsive to how electricity is actually consumed, rather than focusing solely on expanding connections.
However, it cautioned that the impact of digitalisation differs depending on the maturity and structure of each country’s energy system.
In Nigeria and Uganda, where grid reliability remains a major constraint, digital solutions are largely being deployed to support access and enable basic productive activities, particularly through decentralised energy systems.
Kenya presents a different picture, with relatively higher electricity access allowing digital tools to increasingly focus on stimulating demand and improving electricity utilisation.
In India, where electricity access is close to universal, digital technologies are playing a more advanced role in improving system performance, integrating distributed energy resources and supporting more sophisticated electricity consumption.
The GSMA therefore argued that digital tools should not be viewed as a one-size-fits-all solution, as their role changes according to the constraints and priorities of individual energy systems.
Reliability, financing remain critical
Despite the growing role of digital technologies, the report stressed that digitalisation alone cannot solve the structural barriers limiting productive electricity use.
It identified reliable and sufficient electricity supply, appropriate tariff structures, supportive connection policies, affordable financing and stronger links between energy services and wider value chains as essential conditions for scaling productive use of energy.
This is particularly important for businesses that need electricity not simply for household consumption but for activities such as processing, refrigeration, irrigation, manufacturing, retail and other income-generating operations.
The GSMA said digital tools can strengthen these conditions by improving access to information, financing, payments, customer management and system monitoring, but cannot substitute for adequate electricity supply or affordable energy services.
Decentralised energy gaining economic relevance
The report also identified several structural changes emerging across energy systems as countries seek to make electrification more economically meaningful.
One of these is the growing role of decentralised energy systems, as households and businesses increasingly adopt distributed solutions to overcome reliability and cost constraints associated with conventional electricity supply.
It also noted a growing convergence between centralised and decentralised energy systems, creating a need for common standards, interoperable technologies and coordinated investment. Digital systems are expected to play an important role in connecting and managing these different forms of energy supply.
According to the report, the next frontier for productive energy use is also moving towards intermediary cities and peri-urban communities, where electricity demand is growing but access to reliable and productive energy remains limited.
At the same time, financing models are shifting beyond traditional ownership of energy assets towards service-based and performance-linked models. This is increasing the importance of customer data, continuous system management and a better understanding of users’ energy needs.
Energy access and digital inclusion increasingly linked
The GSMA further highlighted the growing relationship between energy access and digital inclusion, arguing that the two challenges can no longer be treated as separate development issues.
Where electricity is unreliable or unaffordable, households and businesses may struggle to consistently use digital services that increasingly support payments, access to information, public services and participation in markets.
The report referenced a 2020 GSMA study which found that pay-as-you-go solar helped increase the uptake and use of digital, financial and mobile data services, particularly among rural communities.
It said access to these services allowed users to participate more actively in the financial economy, access information and skills, and build business connections.
Ultimately, the GSMA said, the success of electrification should increasingly be measured by how effectively electricity is used to support livelihoods, productivity and economic growth, rather than simply by how many people are connected.
