Nigeria: Nigeria has attracted about $425 million in investments in 2025 for the establishment of eight renewable energy manufacturing facilities as part of efforts to scale up local production of solar panels and position the country as a regional hub for clean energy manufacturing in West Africa. The Managing Director of the Rural Electrification Agency, Abba Aliyu, disclosed this recently during a webinar organised by the African Association of Energy Journalists and Publishers, where he highlighted growing investor confidence in Nigeria's renewable energy sector.
According to Ghana Web, the investments reflect the impact of deliberate government policies designed to deepen local manufacturing and attract private capital into the sector. Abba Aliyu stated that Nigeria's local manufacturing capacity has increased significantly, moving from about 120 megawatts to roughly 300 megawatts, with 3.7 gigawatts in the pipeline. This growth is attributed to a strategic effort to build investor confidence and attract private capital.
The country's burgeoning manufacturing base is already beginning to yield export opportunities. Locally produced solar panels are now being shipped from Lagos to Accra, Ghana, indicating Nigeria's emergence as a regional manufacturing hub. Aliyu emphasized that Nigeria is taking a leadership role in West Africa by producing solar panels locally for the first time and exporting them.
The renewable energy initiatives in Nigeria are not limited to manufacturing; they also encompass regulatory reforms aimed at improving project viability and encouraging investor participation. Aliyu noted that several African countries, including Mozambique, Benin Republic, Burkina Faso, Niger, Chad, Mauritania, and Mauritius, are interested in replicating Nigeria's evolving electricity access model.
Nigeria's Distributed Access through Renewable Energy Scale-Up programme is described as the largest publicly funded renewable energy access initiative globally. It aims to expand electricity access to millions of Nigerians through mini-grids and private sector participation. The project employs a results-based financing model, requiring developers to mobilize their own capital before accessing incentives.
The $750 million programme is expected to mobilize an additional $1.1 billion in private sector investment, supported by financial institutions and development partners, including Citibank Nigeria, Lotus Bank, and the International Finance Corporation.