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Nigeria Secures $500 Million for Solar Manufacturing

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KEY POINTS


  • Nigeria’s solar manufacturing drive attracts $500 million in funding.
  • Ongoing deals could deliver 4 gigawatts of new capacity yearly.
  • Oando begins solar exports to Ghana as part of regional expansion.

Nigeria has secured nearly $500 million from state governors and private investors to establish solar manufacturing plants across the country, according to Minister of Power Adebayo Adelabu. The funding is part of a wider push to expand renewable energy production, reduce imports, and strengthen Nigeria’s role as a key regional supplier.

Nigeria solar manufacturing to expand capacity

Speaking at the ongoing Nigeria Energy Conference in Lagos, Adelabu said the agreements were finalised after the Nigerian Renewable Energy Innovation Forum organised by the Rural Electrification Agency. The initiative is expected to add close to 4 gigawatts of solar manufacturing capacity per year, equivalent to almost 80 percent of the nation’s current total power generation capacity.

He explained that the projects would support domestic production of solar panels, batteries, and meters, cutting down on imports while boosting industrial growth. “With this scale of renewable energy production coming online, Nigeria is not only positioned to achieve its domestic transition targets but also to serve as a regional power market,” Adelabu said.

Nigeria solar manufacturing fuels regional exports

The minister revealed that Nigeria had already begun exporting locally produced solar panels to Ghana, marking a milestone for the country’s renewable energy ambitions. He said, “We recently started exporting solar panels made in Nigeria to Ghana. This will not stop. We intend to be the hub, not just for West Africa, but for the entire African market.”

Adelabu noted that the drive toward local manufacturing will create jobs, attract foreign exchange, and accelerate the deployment of solar infrastructure nationwide. He also emphasised that youth training in renewable technologies would be vital to sustaining the momentum.

He assured investors that the government was committed to creating a stable, business-friendly environment across the power sector, particularly in transmission. “As rational investors, recovery of your principal and margin on principal are important, and in Nigeria’s power sector, you will not lose your investment,” he said.

According to PUNCH, Abba Aliyu, Managing Director of the Rural Electrification Agency, reinforced the government’s commitment to domestic production. He said more than N200 billion has been spent importing photovoltaic panels, and the agency is working to localise manufacturing. “Lagos, being the centre of excellence, will lead the effort to make local production a reality,” Aliyu said.

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