Roughly $425 million in funding flowed into Nigeria in 2025 to set up eight renewable energy manufacturing plants, highlighting efforts to boost local solar panel production and position the country as a clean energy hub in West Africa.
This was revealed by the Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, during a webinar organised by the African Association of Energy Journalists and Publishers.
He explained that the investment surge is driven by policy measures aimed at building domestic manufacturing strength and increasing investor trust in the industry.
Aliyu noted that Nigeria’s solar production capacity has surged in recent years, growing from around 120 megawatts to nearly 300 megawatts, with another 3.7 gigawatts currently in the pipeline. He said this progress reflects a targeted plan to boost investor confidence and draw in private funding.
The growth is now extending into exports. Aliyu stated that solar panels manufactured in Nigeria are already being transported from Lagos to Accra, Ghana, indicating a move away from reliance on imports toward regional supply.
He emphasised that local production has begun yielding results, with exports already underway, positioning Nigeria as a rising force in West Africa’s shift to cleaner energy.
In addition to manufacturing, authorities are introducing policy and regulatory reforms to make energy projects more viable and attract increased private sector involvement.
Burkina Faso joins seven countries adopting the model
Aliyu pointed out that Nigeria’s strategy for improving electricity access is gaining traction across Africa, with countries such as Mozambique, Benin, Burkina Faso, Niger, Chad, Mauritania, and Mauritius showing interest in adopting similar systems.
At the centre of this push is Nigeria’s Distributed Access through Renewable Energy Scale-Up programme, a $750 million project focused on expanding electricity through mini-grids and decentralised solutions.
The initiative follows a results-based financing approach, where developers must invest upfront before qualifying for incentives.
Aliyu added that the programme is projected to unlock an additional $1.1 billion in private sector funding, backed by institutions including Citibank Nigeria, Lotus Bank, and the International Finance Corporation.
Despite the positive outlook, the sector still faces hurdles such as infrastructure limitations and wider economic challenges.
Even so, the level of planned investment indicates increasing confidence in Nigeria’s long-term prospects in renewable energy.