The Federal Government’s insistence on local solar panel manufacturing is a potentially sound economic decision if it can be pursued to a logical conclusion. Besides helping the country to retain a staggering $40 billion World Bank and African Development Bank (AfDB) power finance initiative, the decision and the fund present an unprecedented opportunity for Nigeria to turn a national challenge into a formidable economic and energy advantage. By diligently executing its commitment to local solar panel manufacturing, the federal government cannot only bridge the energy gap but also position Nigeria as a regional leader in renewable energy, creating sustainable jobs, fostering innovation, and securing a brighter, more self-reliant future for its citizens. This is not just about lights; it’s about livelihood, progress, and national pride.
The country’s national electricity grid has collapsed twice this year, plunging Nigerians into darkness. In 2024, the national grid suffered collapses and disturbances 12 times. These instances revealed parts of the major challenges in Nigeria’s power sector ecosystem, necessitating diversification towards solar and other renewable energies.
Nigeria, a country blessed with abundant sunshine and a critical electricity access gap, stands at a pivotal moment. Like the White House in the United States of America, which combined solar energy with power from the grid, Nigeria’s government recently revealed a N10 billion budget for solar energy for the presidential villa. Therefore, the government’s decision is a strategic declaration of economic sovereignty and a bold commitment to a self-reliant energy future. This move, championed by the Rural Electrification Agency (REA), recognises that the path to widespread energy access and economic prosperity lies not in endless importation but in domestic innovation and production.
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, at the launch of the Next Generation Renewable Energy Service Company (RESCO) programme in Abuja, said the Federal Government has resolved to transform its energy deficit into an economic opportunity. Aliyu stressed that the $410 billion required for Nigeria’s energy transition plan and the $40 billion required to bridge access cannot end up in the pockets of foreigners and importers. He noted that Nigeria, despite having the highest number of people without access to electricity on the continent, remains critically under-represented in the global renewable energy job market. “It is no longer enough to talk about energy poverty. We must act by localising solutions through finance, infrastructure, talent, and manufacturing. The access gap is not just a burden; it is our opportunity to lead Africa’s energy future,” Aliyu said.
Under President Bola Tinubu’s administration, Nigeria has secured a landmark $750 million in public-sector renewable energy funding — one of the largest globally. This, according to the REA boss, marks a turning point in efforts to build infrastructure and deepen the domestic renewable energy value chain.
The huge scale of the $40 billion required to bridge Nigeria’s electricity access deficit underscores the urgency of this policy. To allow such a substantial sum to flow out of the country, enriching foreign manufacturers and exporters, would be a missed opportunity of epic proportions. Instead, channelling these funds into a burgeoning local solar industry promises a cascade of benefits that can fundamentally transform Nigeria’s economic landscape.
Firstly, economic retention and wealth creation are paramount. Every dollar spent on locally manufactured solar panels is a dollar that circulates within the Nigerian economy. It supports local businesses, creates jobs across the value chain – from raw material sourcing and manufacturing to installation and maintenance – and ultimately contributes to the nation’s Gross Domestic Product (GDP). This stands in stark contrast to capital flight, which merely exacerbates economic challenges.
Secondly, job creation and skills development are critical. The President of the African Development Bank (AfDB), Akinwunmi Adesina, disclosed that Nigeria has the highest population of people living without electricity globally. He revealed that approximately 86 million Nigerians lack access to electricity, positioning the country as the global leader in this regard.
Local manufacturing will directly address this disparity by generating thousands of skilled and semi-skilled jobs. This isn’t just about factory work; it’s about fostering a new generation of engineers, technicians, and innovators who can drive Nigeria’s energy transition from within. It also encourages technology transfer and builds indigenous capacity.
Thirdly, enhanced energy security and reliability are non-negotiable. A nation dependent on imported solar panels is susceptible to global supply chain disruptions, fluctuating international prices, and geopolitical uncertainties. By manufacturing its own panels, Nigeria gains greater control over its energy supply, ensuring stability and resilience in its electrification efforts. Further, locally produced panels can be specifically engineered to withstand Nigeria’s unique climatic conditions, leading to higher efficiency and longer lifespan, combating the pervasive issue of substandard imports.
The government’s insistence on local content is already showing promising signs. Reports indicate that Nigeria’s local solar panel manufacturing capacity has risen significantly, with operational plants now existing in Lagos, Abuja, and other regions. This progress is a testament to the potential that lies within Nigeria’s entrepreneurial spirit and industrial capacity when given the right policy support.
However, the journey to a fully localised solar panel manufacturing ecosystem is not without its challenges. Issues such as access to affordable finance, consistent power supply for factories, the availability of high-quality raw materials, and the need to combat the influx of counterfeit products must be robustly addressed. The government must move beyond mere insistence and actively implement policies that de-risk investment, provide incentives, and ensure a level playing field for local manufacturers. This includes fostering research and development, establishing stringent quality control mechanisms, and potentially implementing import restrictions that are carefully phased to avoid stalling the sector’s momentum.
Nevertheless, the $40 billion electricity access fund is an opportunity for Nigeria to double down on local manufacturing of solar technologies, position itself as Africa’s renewable energy hub, while unlocking new job opportunities and attracting investments.
