Business is booming.

Nigeria emerges West Africa’s renewable energy production hub

 

By Abbas Nazil

Nigeria is emerging as a key renewable energy manufacturing hub in West Africa, driven by rapid growth in local production capacity and supportive government policies, according to the Managing Director of the Rural Electrification Agency, Abba Aliyu.

Aliyu said Nigeria’s installed solar panel manufacturing capacity has increased significantly from 120 megawatts two years ago to about 300 megawatts currently, marking a 150 percent rise and signalling strong progress in localising the renewable energy value chain.

He added that an additional 3.7 gigawatts of capacity is in the pipeline, positioning the country to meet domestic demand while also supplying regional markets.

Speaking at a webinar organised by the African Association of Energy Journalists and Publishers, Aliyu attributed the growth to policy direction under Bola Tinubu, particularly the Nigeria First policy, which prioritises local manufacturing and domestic content development.

He noted that 2025 was a turning point for Nigeria’s solar industry, as imports of solar cells and components for local assembly reached 837 megawatts, surpassing the cumulative 375 megawatts imported in previous years and overtaking finished product imports.

According to him, this shift demonstrates a structural transformation from dependence on imports to domestic production within the renewable energy sector.

Aliyu also disclosed that about 425 million dollars in investments has been earmarked for the development of eight renewable energy manufacturing facilities across the country, alongside additional commitments secured during the Nigeria Renewable Energy Innovation Forum 2025.

He explained that these investments are helping to build an integrated ecosystem covering manufacturing, deployment, and financing, which is essential for long-term sector sustainability.

The REA’s large-scale programmes, including the Energising Education Programme and the Distributed Access through Renewable Energy Scale-Up initiative, are creating stable demand for locally produced equipment, ensuring that manufacturing growth is matched with market opportunities.

Regulatory support is also expanding, with the Nigerian Electricity Regulatory Commission enabling distributed energy projects of up to 10 megawatts under decentralised and interconnected mini-grid frameworks, thereby encouraging private sector participation.

Nigeria is already beginning to export locally manufactured solar panels to countries such as Ghana, marking a transition from a renewable energy consumer to a regional supplier.

Aliyu said the country’s electrification model is attracting interest from several African nations, including Mozambique, Benin, Burkina Faso, Niger, Chad, Mauritania, and Mauritius, which are exploring ways to replicate its approach.

Looking ahead, he highlighted opportunities for cross-border electricity trade through solar deployment in border communities, which could strengthen regional integration and energy security.

He added that future phases of the Nigeria Renewable Energy Innovation Forum will focus on consolidating these gains and positioning Nigeria as a central hub for renewable energy manufacturing, innovation, and trade across Africa.

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