Nigeria is ramping up efforts to localise renewable energy manufacturing, with installed solar panel production capacity increasing from 120 megawatts two years ago to about 300 megawatts currently. About 3.7 gigawatts are also in the pipeline, as the country positions itself to anchor West Africa as a hub for renewable energy manufacturing.
Dr. Abba Aliyu, Managing Director of the Rural Electrification Agency (REA), disclosed this during a webinar organised by the African Association of Energy Journalists and Publishers (AJERAP). He noted that the growth is driven by deliberate government policies under President Bola Tinubu aimed at creating an enabling environment for private sector investment.
“We have moved from about 120 megawatts of local manufacturing capacity to roughly 300 megawatts today, with 3.7 gigawatts in the pipeline. “This is based on a deliberate strategy to build investor confidence and attract private capital into the sector,” he said.
He added that Nigeria recorded about $425 million in investments in 2025 for the establishment of eight renewable energy manufacturing facilities. According to him, locally manufactured solar panels are now being exported from Lagos to Accra, Ghana, signalling Nigeria’s emergence as a regional manufacturing hub.
“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,” Aliyu said. The REA MD emphasised that the Nigerian Electricity Regulatory Commission’s 2026 Mini-Grid Regulations, which increase the allowable capacity for interconnected mini-grids to 10 megawatts (MW), have significantly boosted investor confidence and rank among the most effective regulatory frameworks in Africa.
He noted that recent policy changes have increased allowable mini-grid capacity from 1MW to 5MW, and up to 10MW for interconnected systems—opening the door for larger-scale renewable projects. According to him, the regulations clearly define how mini-grids interact with the main grid, simplify licensing, and streamline environmental and social impact assessments.