Nigeria’s domestic solar panel manufacturing capacity has increased to 300 megawatts (MW), up from 120MW two years ago, with a 3.7 gigawatts (GW) project pipeline in development.
This was disclosed by the Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, during a webinar organised by the African Association of Energy Journalists and Publishers (AJERAP) in Lagos, according to the News Agency of Nigeria.
The development reflects growing momentum in Nigeria’s renewable energy sector, driven by policy support and rising private sector participation.
What they are saying
Aliyu said the expansion in solar manufacturing capacity is part of a deliberate strategy by the Federal Government to attract investment and position Nigeria as a renewable energy hub in West Africa.
- “We have moved from about 120 megawatts of local manufacturing capacity to roughly 300 megawatts today, with 3.7GW in the pipeline.”
- “This is based on a deliberate strategy to build investor confidence and attract private capital into the sector.”
- He noted that Nigeria recorded about $425 million in renewable energy investments in 2025, supporting the establishment of eight manufacturing facilities.
- According to him, locally produced solar panels are already being exported from Lagos to Accra, Ghana, marking Nigeria’s emergence as a regional manufacturing hub.
Aliyu added that countries including Mozambique, Benin Republic, Niger, Chad, Burkina Faso, Mauritania and Mauritius are engaging Nigeria to replicate its electricity access model.
More Insights
The REA boss highlighted recent regulatory reforms and investment frameworks that are shaping Nigeria’s renewable energy expansion, particularly in mini-grid development and distributed energy systems.
- The 2026 Mini-Grid Regulations by the Nigerian Electricity Regulatory Commission now allow interconnected mini-grids of up to 10MW, improving investor confidence.
- Mini-grid capacity limits have been increased from 1MW to 5MW, and up to 10MW for interconnected systems, enabling larger renewable projects.
- The regulations also simplify licensing processes and streamline environmental and social impact assessments for developers.
- Aliyu said these changes could support cross-border electricity trade in border communities and deepen regional energy integration.
He also called for the development of an off-grid electricity market across West Africa to complement existing regional power systems.
What you should know
Recently, REA signed a Memorandum of Understanding with Lotus Bank for a N100 billion revolving credit facility to expand renewable energy access to unserved and underserved rural communities across Nigeria.
Also, REA recently signed an agreement with ECOWAS to deploy solar systems to 15 public institutions under the Regional Off-Grid Electricity Access Project.
Nigeria’s Distributed Access through Renewable Energy Scale-Up (DARES) programme remains a key driver of the country’s renewable energy expansion strategy, with significant private sector participation expected.
- The DARES programme aims to provide electricity access to 17.5 million Nigerians through over 2.5 million household connections.
- It targets the deployment of 1,350 mini-grids, including 250 interconnected systems across the country.
The initiative is backed by $750 million in funding and is expected to mobilise an additional $1.1 billion in private investment.
