Nigeria expands solar manufacturing to 300MW, eyes 3.7GW capacity

 

Nigeria has ramped up its local solar manufacturing capacity to about 300 megawatts (MW), up from 120MW two years ago, as it intensifies efforts to become a renewable energy hub in West Africa.

Managing Director of the Rural Electrification Agency (REA), Dr Abba Aliyu, disclosed this during a webinar hosted by the African Association of Energy Journalists and Publishers (AJERAP), noting that an additional 3.7 gigawatts (GW) capacity is currently in the pipeline.

Aliyu attributed the growth to targeted government policies designed to attract private sector investment into the renewable energy sector.

According to him, Nigeria secured approximately $425 million in 2025 to establish eight renewable energy manufacturing plants, adding that locally produced solar panels are already being exported from Lagos to Accra, Ghana.

He said investor confidence has been boosted by regulatory reforms, particularly the Nigerian Electricity Regulatory Commission’s 2026 Mini-Grid Regulations, which increased allowable mini-grid capacity from 1MW to 5MW, and up to 10MW for interconnected systems.

“The new framework simplifies licensing processes and clarifies grid interactions, making it easier for developers to scale projects,” Aliyu said.

He added that the expanded capacity could support cross-border electricity trade, especially in border communities, while complementing efforts under the West African Power Pool.

Aliyu further noted that Nigeria’s electricity access model is attracting interest from several African countries, including Mozambique, Benin Republic, Burkina Faso, Niger, Chad, Mauritania, and Mauritius.

He highlighted the Distributed Access through Renewable Energy Scale-Up (DARES) programme as a key driver of expansion, describing it as the world’s largest publicly funded renewable energy access initiative.

The programme, funded with $750 million, aims to provide electricity to 17.5 million Nigerians by connecting over 2.5 million households and deploying 1,350 mini-grids, including 250 interconnected systems.

Aliyu added that the initiative is expected to attract an additional $1.1 billion in private investment through a results-based financing model requiring developers to commit upfront capital.

He also pointed to partnerships with institutions such as Citibank Nigeria, Lotus Bank, and the International Finance Corporation as evidence of growing confidence in Nigeria’s renewable energy strategy.