Nigeria has secured about US$425 million in investments to establish eight solar manufacturing facilities, marking a significant step in its ambition to become a regional hub for renewable energy production in West Africa, officials said.
The investments, recorded in 2025, reflect growing investor confidence in Africa’s largest economy as it seeks to expand domestic energy capacity, reduce reliance on imports and accelerate access to electricity for millions of people.
Abba Aliyu, managing director of the Rural Electrification Agency (REA), said the funding would support a rapid scale-up of local solar panel production, positioning Nigeria at the forefront of clean energy manufacturing in the region.
“We have moved from about 120 megawatts of local manufacturing capacity to roughly 300 megawatts today, with 3.7 gigawatts in the pipeline,” Aliyu said during a webinar organised by the African Association of Energy Journalists and Publishers.
The expansion is part of a broader government strategy to attract private capital into the renewable energy sector through policy reforms and targeted incentives aimed at strengthening local industry.
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Nigeria has long struggled with chronic electricity shortages, with more than 80 million people lacking reliable power supply. The government has increasingly turned to renewable energy—particularly solar—as a viable solution to bridge the energy gap, especially in rural and off-grid communities.
Aliyu said the country’s emerging manufacturing base is already beginning to generate export opportunities, with locally produced solar panels now being shipped from Lagos to Accra, Ghana.
“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,” he said.
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The investments are also expected to create jobs, deepen industrial capacity and reduce the cost of deploying solar infrastructure across the country.
Nigeria’s renewable energy push extends beyond manufacturing. Authorities are also implementing reforms to improve project viability and encourage private sector participation in electricity access initiatives.
A key programme driving this effort is the Distributed Access through Renewable Energy Scale-Up (DARES) initiative, described by officials as the largest publicly funded renewable energy access programme globally.
The $750 million programme is designed to expand electricity access through mini-grids and standalone solar systems, particularly in underserved areas. It operates on a results-based financing model, requiring developers to mobilise their own capital before accessing government-backed incentives.
Aliyu said the initiative is expected to unlock an additional $1.1 billion in private investment, supported by financial institutions and development partners including Citibank Nigeria, Lotus Bank and the International Finance Corporation.
The country’s approach is drawing attention from across the continent, with several African nations—including Mozambique, Benin, Burkina Faso, Niger, Chad, Mauritania and Mauritius—seeking to replicate Nigeria’s renewable energy framework.
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Analysts say the surge in investment comes at a critical time, as African countries face mounting pressure to transition to cleaner energy sources while addressing persistent power deficits.
Nigeria’s strategy aligns with broader global trends favouring renewable energy amid rising concerns over climate change and the volatility of fossil fuel markets.
However, challenges remain. Industry experts point to issues such as currency instability, high financing costs and regulatory bottlenecks as potential constraints on the sector’s long-term growth.
Despite these hurdles, the government remains optimistic that sustained policy support and increasing private sector involvement will drive further expansion.
As Nigeria ramps up its renewable energy ambitions, the latest wave of investments signals a shift toward building a more resilient and self-sufficient energy system—one that could reshape the country’s economic landscape and strengthen its role in Africa’s clean energy transition.
