Targets 3.7GW as Regional Energy Hub
Nigeria is making significant progress in localizing its renewable energy value chain, with installed solar panel manufacturing capacity rising from 120 megawatts (MW) two years ago to about 300MW today. With an additional 3.7 gigawatts (GW) in the pipeline, the country is positioning itself as a potential renewable energy manufacturing hub in West Africa, with the capacity to serve regional markets.
Speaking during a webinar organized by the African Association of Energy Journalists and Publishers, the Managing Director of the Rural Electrification Agency, Abba Aliyu, attributed the progress to deliberate policy direction under Bola Ahmed Tinubu’s Nigeria First Policy, which prioritizes local content development and domestic manufacturing.
He explained that 2025 marked a turning point for Nigeria’s solar industry. Imports of solar cells and components for local assembly reached 837MW, surpassing the cumulative 375MW imported in all previous years combined. This shift also saw component imports overtake finished product imports, signaling a structural move toward domestic manufacturing.
The growth is being reinforced by about $425 million in investments targeted at establishing eight renewable energy manufacturing facilities across the country. Additional commitments secured at the Nigeria Renewable Energy Innovation Forum 2025 are further strengthening the sector. Together, these developments are helping to build an integrated ecosystem that spans manufacturing, deployment, and financing, while creating the scale needed for long-term sustainability.
According to Dr. Aliyu, large-scale deployment programmes by the REA, including the Energizing Education Programme and the Distributed Access through Renewable Energy Scale-Up initiative, are providing the predictable demand needed to sustain domestic manufacturing. This alignment ensures that increased local production is matched with real market opportunities.
He also noted that Nigeria’s regulatory environment is evolving to support the sector’s growth. The Nigerian Electricity Regulatory Commission has expanded its framework for Distributed Energy Resources, enabling projects of up to 10MW under decentralized and interconnected mini-grid structures. This is expected to unlock more opportunities for private sector participation.
Nigeria is already beginning to tap into regional markets. Locally manufactured solar panels are now being exported from Lagos to Accra, signaling a shift from being primarily a renewable energy consumer to becoming a supplier within the region.
Looking ahead, Dr. Aliyu highlighted the potential for solar deployments in border communities to support cross-border electricity trade, which could strengthen regional integration and energy security. He added that Nigeria’s electrification model is gaining recognition across Africa, with countries such as Mozambique, Benin Republic, Burkina Faso, Niger, Chad, Mauritania, and Mauritius engaging with the REA to replicate elements of its approach.
Building on this momentum, the next phase of the Nigeria Renewable Energy Innovation Forum, known as NREIF 2.0, will focus on deepening regional integration and positioning Nigeria as a central hub for renewable energy manufacturing, innovation, and trade across Africa.
Dr. Aliyu concluded that Nigeria’s progress reflects a broader transition from project-based interventions to building a fully integrated renewable energy ecosystem anchored on local manufacturing, scalable deployment, and regional collaboration
