Nigeria Expands Solar Capacity to 300MW, Eyes 3.7GW

Nigeria has increased its domestic solar panel manufacturing capacity to 300 megawatts, up from 120 megawatts recorded two years ago, as it intensifies efforts to position itself as a renewable energy hub in West Africa.

The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, disclosed this during a webinar organised by the African Association of Energy Journalists and Publishers in Lagos.

Aliyu said the country currently has about 3.7 gigawatts of solar capacity in the pipeline, reflecting a deliberate strategy to attract private sector investment and strengthen local manufacturing.

“We have moved from about 120 megawatts of local manufacturing capacity to roughly 300 megawatts today, with 3.7GW in the pipeline,” he said.

According to him, the growth has been driven by government policies under President Bola Tinubu aimed at creating an enabling environment for investors.

He disclosed that Nigeria recorded approximately $425 million in investments in 2025 for the establishment of eight renewable energy manufacturing facilities.

Aliyu further revealed that locally manufactured solar panels are already being exported from Lagos to Accra, signalling Nigeria’s emergence as a regional production hub.

“For the first time, Nigeria is producing solar panels locally, and they are already being exported,” he said.

The REA boss also highlighted the role of regulatory reforms by the Nigerian Electricity Regulatory Commission, particularly the 2026 Mini-Grid Regulations, which have increased the allowable capacity for interconnected mini-grids to 10MW.

He noted that the new framework, which raised capacity thresholds from one megawatt to five megawatts and up to 10MW for interconnected systems, has boosted investor confidence and simplified licensing, environmental approvals and grid integration processes.

Aliyu said the expansion could unlock opportunities for cross-border electricity trade, especially in border communities.

“If we deploy large solar farms in border towns, we can sell electricity across countries and deepen regional integration,” he added.

He also underscored the importance of the West African Power Pool in integrating power systems across the sub-region, while advocating for the development of a complementary off-grid electricity market.

According to him, Nigeria’s electricity access model is increasingly being adopted by countries such as Mozambique, Benin, Burkina Faso, Niger, Chad, Mauritania and Mauritius.

Aliyu described the Distributed Access through Renewable Energy Scale-Up programme as the largest publicly funded renewable energy access initiative globally, targeting electricity supply for 17.5 million Nigerians.

The programme aims to connect over 2.5 million households and deploy 1,350 mini-grids, including 250 interconnected systems, using a results-based financing model that requires private developers to mobilise capital before accessing incentives.

He said the $750 million funding for the initiative is expected to unlock an additional $1.1 billion in private investment, with support from financial institutions including Citibank Nigeria, Lotus Bank and the International Finance Corporation.

“The structure of this programme has unlocked significant private financing and is setting a benchmark for renewable energy deployment across the region,” he said.