Nigeria is accelerating its drive to localise renewable energy manufacturing, with installed solar panel production capacity rising from 120 megawatts two years ago to about 300 megawatts today, while an additional 3.7 gigawatts is in the pipeline as the country positions itself as West Africa’s emerging clean energy manufacturing hub.
The Managing Director of the Rural Electrification Agency (REA), Dr. Abba Aliyu, disclosed this during a webinar organised by the African Association of Energy Journalists and Publishers (AJERAP), attributing the growth to deliberate policy measures under President Bola Tinubu aimed at strengthening investor confidence and expanding private sector participation.
According to him, Nigeria attracted about $425 million in investments in 2025 for the establishment of eight renewable energy manufacturing facilities. He added that locally produced solar panels are now being exported from Lagos to Accra, Ghana, marking what he described as a turning point in the country’s emergence as a regional manufacturing base.
“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. “This reflects a deliberate strategy to build investor confidence and crowd in private capital.”
He noted that recent regulatory reforms have further strengthened the investment climate, particularly the Nigerian Electricity Regulatory Commission’s 2026 Mini-Grid Regulations, which expand allowable interconnected mini-grid capacity to 10 megawatts. Previously capped at 1 megawatt and later 5 megawatts, the revised framework, he said, has significantly improved project viability and investor appetite.
Aliyu explained that the updated regulations also clarify grid interaction rules, simplify licensing procedures, and streamline environmental and social impact assessments, thereby reducing bottlenecks for developers.
He further highlighted the potential of expanded mini-grid deployment to support cross-border electricity trade in border communities, noting that Nigeria’s renewable energy strategy is increasingly influencing regional approaches to electrification.
“If we deploy large solar farms in border towns, we can sell electricity across countries and deepen regional integration,” he said, adding that Nigeria is also advocating for a complementary off-grid electricity market across West Africa alongside the existing West African Power Pool framework.
According to him, several African countries, including Mozambique, Benin Republic, Burkina Faso, Niger, Chad, Mauritania, and Mauritius, are engaging Nigeria to study its electrification model.
Aliyu described the Distributed Access through Renewable Energy Scale-Up (DARES) programme as the largest publicly funded renewable energy access initiative globally. The programme targets electricity access for 17.5 million Nigerians through over 2.5 million household connections and the deployment of 1,350 mini-grids, including 250 interconnected systems.
He said the $750 million programme is structured around a results-based financing model designed to mobilise private capital, with an expected 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,” he said, citing participation from Citibank Nigeria, Lotus Bank, the International Finance Corporation, and other development finance institutions.
Aliyu added that the financing framework is setting a benchmark for renewable energy expansion across Africa, driven by a blend of public funding, private investment, and regulatory reform.
