Nigeria is ramping up efforts to localise renewable energy manufacturing, with installed solar panel production capacity increasing from 120 megawatts two years ago to about 300 megawatts currently.
- +Nigeria Grows Solar To 300MW, Targets 3.7GW For West African Hub
About 3.7 gigawatts are also in the pipeline, as the country positions itself to anchor West Africa as a hub for renewable energy manufacturing.
About 3.7 gigawatts are also in the pipeline, as the country positions itself to anchor West Africa as a hub for renewable energy manufacturing.
Dr. Abba Aliyu, Managing Director of the Rural Electrification Agency (REA), disclosed this during a webinar organised by the African Association of Energy Journalists and Publishers (AJERAP).
He noted that the growth is driven by deliberate government policies under President Bola Tinubu aimed at creating an enabling environment for private sector investment.
“We have moved from about 120 megawatts of local manufacturing capacity to roughly 300 megawatts today, with 3.7 gigawatts in the pipeline.
“This is based on a deliberate strategy to build investor confidence and attract private capital into the sector,” he said.
He added that Nigeria recorded about $425 million in investments in 2025 for the establishment of eight renewable energy manufacturing facilities.
According to him, locally manufactured solar panels are now being exported from Lagos to Accra, Ghana, signalling Nigeria’s emergence as a regional manufacturing hub.
“For the first time, Nigeria is producing solar panels locally, and they are already being exported. This shows the direction we are heading and the leadership role Nigeria can play in West Africa,” Aliyu said.
The REA MD emphasised that the Nigerian Electricity Regulatory Commission’s 2026 Mini-Grid Regulations, which increase the allowable capacity for interconnected mini-grids to 10 megawatts (MW), have significantly boosted investor confidence and rank among the most effective regulatory frameworks in Africa.
He noted that recent policy changes have increased allowable mini-grid capacity from 1MW to 5MW, and up to 10MW for interconnected systems—opening the door for larger-scale renewable projects.
According to him, the regulations clearly define how mini-grids interact with the main grid, simplify licensing, and streamline environmental and social impact assessments.
Aliyu further noted that the expansion in mini-grid capacity could enable cross-border electricity trade, especially in border communities.
“If we deploy large solar farms in border towns, we can sell electricity across countries and deepen regional integration,” he said.
Highlighting the role of the West African Power Pool in integrating on-grid systems across the sub-region, Abba Aliyu called for the development of a complementary off-grid electricity market to drive broader energy access across Africa.
“We may not need to fully integrate national grids immediately, but we can build an integrated off-grid market across border communities,” he added.
According to Aliyu, Nigeria’s electricity access model is increasingly being adopted across Africa, with several countries seeking to replicate its approach.
“Countries like Mozambique, Benin Republic, Burkina Faso, Niger, Chad, Mauritania, and Mauritius are engaging with us to understand our framework,” he said.
He emphasised that regional electricity access initiatives will be critical for improving energy security and expanding access across the continent.
Aliyu described Nigeria’s Distributed Access through Renewable Energy Scale-Up (DARES) programme as the largest publicly funded renewable energy access initiative globally.
The programme aims to provide electricity to 17.5 million Nigerians by connecting over 2.5 million households and deploying 1,350 mini-grids, including 250 interconnected systems.
“The project is designed around the private sector using a results-based financing model. Developers must mobilise their own capital before accessing incentives,” he said.
He added that the $750 million funding is expected to catalyse an additional $1.1 billion in private sector investment.
“We are already seeing strong traction. Financial institutions and development partners are committing funds, demonstrating confidence in the model,” Aliyu noted.
He cited financing partnerships involving institutions such as Citibank Nigeria, Lotus Bank, and the International Finance Corporation, alongside support from development finance and impact investment organisations.
“The structure of this programme has unlocked significant private financing and is setting a benchmark for renewable energy deployment across the region,” he said.
