Nigeria’s Solar Push: REA Targets Local Manufacturing as 85 Million Lack Reliable Electricity
ONYINYECHI NWAIGBA 
Nigeria is taking another step towards building a stronger domestic renewable energy industry as the Rural Electrification Agency (REA) moves to support local manufacturing of solar panels and battery storage systems.
The move comes against the backdrop of a significant energy access challenge. More than 85 million Nigerians, representing close to 40 percent of the country’s population, still lack reliable access to grid electricity, according to the Managing Director and Chief Executive Officer of the REA, Abba Aliyu.
Aliyu disclosed this on Tuesday in Abuja during the signing of a Joint Development Agreement between the REA and Ecotech Development Nigeria Limited.
The agreement is expected to facilitate the establishment of a solar panel and battery assembly and manufacturing facility in Nigeria, with the broader objective of expanding electricity access while creating employment opportunities, developing technical capacity and retaining more foreign exchange within the country.
Moving Beyond Imported Solar Equipment
Nigeria’s growing reliance on solar energy has created a rapidly expanding market for panels, batteries, inverters and other renewable energy equipment.
However, much of the equipment used to meet this growing demand is imported.
According to the REA, this dependence represents more than an energy-sector challenge. It also means that opportunities for manufacturing, technical skills development, job creation and economic value are being created outside the country.
Speaking at the agreement signing, Aliyu said Nigeria has effectively been supplying the market and the need for renewable energy while relying on other countries for much of the technology and equipment.
The new partnership is therefore intended to shift part of that value chain into Nigeria.
Under the agreement, the REA, through its renewable asset management subsidiary, will facilitate the annual offtake of up to 200 megawatts of solar photovoltaic modules and 200 megawatt-hours of battery energy storage systems manufactured and assembled in Nigeria by Ecotech.
The agency said the arrangement is non-exclusive and does not override existing public procurement regulations.
For Nigeria, the significance goes beyond having locally assembled solar equipment. A stronger domestic manufacturing ecosystem could help develop the technical expertise required to design, produce, install, maintain and eventually recycle renewable energy technologies.
Why Local Solar Manufacturing Matters
The push for local manufacturing comes at a time when demand for solar energy is increasing across households, businesses and communities.
In areas where grid electricity remains unreliable or unavailable, decentralised renewable energy solutions such as solar home systems and mini-grids are increasingly important.
The REA has previously identified local manufacturing and assembly as part of its strategy for strengthening Nigeria’s off-grid sector. Its Solar Power Naija programme, for example, includes manufacturers and assemblers of solar components among eligible participants in the upstream renewable energy value chain.
Local production could also shorten supply chains and reduce some of the delays associated with importing equipment.
But perhaps the biggest opportunity is economic.
If Nigeria can develop a competitive renewable energy manufacturing ecosystem, more of the money spent on the country’s energy transition could circulate within the domestic economy.
That could mean new manufacturing jobs, opportunities for engineers and technicians, demand for local suppliers, training for young people and the growth of businesses providing installation, maintenance and other services around renewable energy.
A Growing Renewable Energy Industry
The latest agreement is not the first attempt to deepen solar manufacturing in Nigeria.
In 2024, the REA, Infrastructure Corporation of Nigeria (InfraCorp) and Dutch renewable energy company Solarge BV announced the formation of Solarge Nigeria Limited, with plans for a 1GW solar photovoltaic manufacturing facility.
The project targets 50 per cent local content within its first three years and includes provisions for technology transfer, capacity building and job creation. REA also committed to procuring at least 200MW of solar modules annually for five years from the facility for public electrification programmes.
The development shows that the government’s push is increasingly focused not only on deploying renewable energy but also on building the industrial capacity behind it.
At the 2025 Nigeria Renewable Energy Investment Forum, REA also reported that more than $400 million in new investment commitments had been mobilised into Nigeria’s renewable energy manufacturing value chain, covering areas including solar panels, smart meters, battery storage and recycling facilities. The investments were projected to create more than 1,500 direct jobs across multiple states.
The Human Side of Energy Access
For CSR and sustainability conversations, the most important part of Nigeria’s renewable energy transition is ultimately not the panels or batteries themselves.
It is what reliable electricity makes possible.
Electricity affects whether a small business can operate consistently, whether a health facility can preserve essential medicines, whether students can study after dark and whether communities can access digital services and other basic infrastructure.
The REA’s mandate reflects this broader development objective. The agency is responsible for electrifying unserved and underserved communities in order to improve quality of life and create economic opportunities.
Its Distributed Access through Renewable Energy Scale-Up (DARES) programme, for instance, is designed to expand renewable energy access, while other REA programmes target productive activities such as agriculture, healthcare, education and businesses.
The agency has also been working to provide clean and reliable electricity to public institutions. Through the Lagos Solar Rooftop Project, for example, REA has supported plans to deploy solar photovoltaic systems in general hospitals that currently depend heavily on diesel generators.
This demonstrates why energy access should be viewed as both an infrastructure issue and a social impact issue.
Can Local Manufacturing Deliver the Bigger Promise?
The announcement is significant, but the real test will be implementation.
Building manufacturing capacity requires more than establishing factories. Nigeria will need consistent investment, skilled workers, reliable infrastructure, access to finance, quality standards and a market capable of sustaining local producers.
There is also the question of affordability.
For millions of Nigerians who cannot rely on the national grid, the ultimate measure of success will be whether renewable energy solutions become more accessible, reliable and affordable.
Local manufacturing can contribute to that goal, but it must be accompanied by strong quality assurance, competitive pricing, after-sales support and responsible environmental practices.
The sustainability of the renewable energy industry will also depend on what happens to batteries, panels and other equipment at the end of their useful lives. Developing recycling and responsible waste-management systems alongside manufacturing will therefore be important as Nigeria’s solar market expands.
A Shift from Energy Access to Energy Independence
Nigeria’s solar transition is increasingly becoming about more than replacing diesel generators or extending electricity access.
It is becoming a question of whether the country can build the industrial ecosystem required to power that transition itself.
The REA’s latest agreement with Ecotech is another step in that direction.
If successfully implemented, local manufacturing could help Nigeria retain more economic value from its growing renewable energy market while creating jobs, developing technical skills and supporting cleaner electricity solutions for communities that remain underserved.
With more than 85 million Nigerians still lacking reliable grid electricity, the urgency is clear.
The challenge now is to ensure that the country’s move towards clean energy does not simply create a bigger market for imported equipment, but becomes an opportunity to build Nigerian industries, Nigerian skills and Nigerian economic opportunities around the energy transition.
That could ultimately make Nigeria’s renewable energy story not just one about access to power, but about people, jobs, industrial development and a more sustainable future.
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