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Nigeria's Solar Manufacturing Capacity Surges 150% to 300MW in Two Years, Eyes Regional Dominance

Nigeria's solar panel manufacturing capacity has seen a substantial increase of 150%, rising from 120MW two years ago to approximately 300MW, with plans to reach 3.7GW. This growth, attributed to the 'Nigeria First Policy', is positioning the country as a key renewable energy hub in West Africa.

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Dr. Abba Aliyu, the Managing Director of the Rural Electrification Agency (REA), has announced that Nigeria is achieving significant milestones in developing its domestic renewable energy sector. Over the past two years, the nation's installed solar panel manufacturing capacity has expanded by 150%, growing from 120 megawatts (MW) to around 300MW.

With an additional 3.7 gigawatts (GW) of capacity expected in the future, this substantial increase to 300MW within the specified timeframe signifies a major leap forward. An official statement from the REA indicated that this advancement is setting Nigeria on course to become a leading hub for renewable energy production in the West African sub-region, with considerable potential to supply neighbouring markets.

Aliyu attributed this success to strategic policy decisions implemented under President Bola Tinubu's administration, particularly the 'Nigeria First Policy,' which emphasizes the development of local content and domestic manufacturing. He highlighted 2025 as a pivotal year for Nigeria's solar sector, noting that imports of solar cells and components for local assembly reached 837MW, surpassing the total imported in all preceding years combined and outstripping imports of finished solar products.

He further stated that this trend is a clear indicator that the Nigeria First policy is driving a fundamental shift towards local manufacturing within the renewable energy industry.

Dr. Abba Aliyu, Managing Director of the Rural Electrification Agency (REA)

Significant investment is bolstering this growth, with approximately $425 million allocated for the establishment of eight new renewable energy manufacturing facilities across Nigeria. Additional commitments were also secured during the Nigeria Renewable Energy Innovation Forum (NREIF) 2025. These developments are crucial for building a comprehensive ecosystem that encompasses manufacturing, deployment, and financing, thereby creating the necessary scale for sustained long-term viability.

Aliyu pointed out that REA's large-scale programmes, such as the Energising Education Programme (EEP) and the Distributed Access through Renewable Energy Scale-Up (DARES), are now generating the consistent demand required to support local manufacturing. This ensures that domestic production is aligned with tangible market opportunities.

Furthermore, Nigeria's regulatory framework is continually evolving to foster this expansion. The Nigerian Electricity Regulatory Commission (NERC) has enhanced the regulations for Distributed Energy Resources (DERs), permitting projects up to 10MW under decentralized and interconnected mini-grid generation structures. This initiative opens up new avenues for private sector involvement.

Nigeria is also beginning to leverage its regional opportunities, with locally manufactured solar panels now being exported from Lagos to Accra, Ghana. This marks a significant transition for the country, moving from being solely a consumer of renewable energy to becoming a regional supplier.

Looking ahead, Aliyu noted the potential for solar energy deployment in border communities, which could facilitate cross-border electricity trade and bolster regional energy security and integration.

He also mentioned that Nigeria's approach to electrification is gaining recognition across Africa, with countries like Mozambique, Benin Republic, Burkina Faso, Niger, Chad, Mauritania, and Mauritius seeking to adopt aspects of its model.

The next iteration of the Nigeria Renewable Energy Innovation Forum (NREIF 2.0) will focus on regional integration and solidifying Nigeria's position as a central hub for renewable energy manufacturing, innovation, and trade throughout the African continent.

Aliyu concluded that Nigeria's progress signifies a broader transition from individual project interventions to the development of a complete renewable energy ecosystem, underpinned by local manufacturing, scalable deployment, and robust regional collaborations.

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