REA Moves to Localise Solar Manufacturing in Nigeria

The Rural Electrification Agency (REA) has signed a deal with Ecotech Development Nigeria Limited to establish a solar panel and battery assembly plant in Nigeria, in a move aimed at reducing the country's dependence on imported renewable energy equipment while expanding electricity access to millions of underserved Nigerians.

The agreement, signed in Abuja on Tuesday, comes as the agency disclosed that more than 85 million Nigerians, representing about 40 per cent of the population, still do not have reliable access to electricity from the national grid.

REA Managing Director and Chief Executive Officer, Abba Aliyu, said the project marks the first time a Tier-One Chinese renewable energy company has committed to setting up solar manufacturing and assembly operations in Nigeria.

He added that the initiative is intended to build domestic manufacturing capacity, reduce import dependence, create jobs and retain more value within the country's renewable energy industry.

Aliyu noted that although programmes such as the Rural Electrification Fund, the Nigerian Electrification Project and the Distributed Access through Renewable Energy Scale-Up Project have connected millions of people to electricity, a large share of Nigerians still lacks dependable power supply.

He revealed that nearly all solar installations across the country rely on imported panels, batteries and inverters despite Nigeria's vast solar energy potential.

"We have been financing someone else's industrial growth with our own electrification budget," he said, arguing that local production would help conserve foreign exchange while strengthening Nigeria's technical and manufacturing capabilities.

Under the agreement, REA, through its renewable asset management subsidiary, will facilitate the annual offtake of up to 200 megawatts of solar photovoltaic modules and 200 megawatt-hours of battery energy storage systems to be manufactured and assembled locally by Ecotech.

Aliyu clarified that the arrangement does not guarantee procurement contracts, stressing that all purchases will continue to follow existing public procurement regulations and compete on cost, quality and reliability.

Nigeria pushes local clean energy Industry

The agreement exhibits the Federal Government's broader effort to build a domestic renewable energy value chain as it seeks to reduce import dependence and accelerate electrification. Nigeria has increasingly promoted mini-grids and solar home systems to bridge the country's electricity deficit, while encouraging private investment in local manufacturing to support industrialisation and expand access to clean energy.

Ecotech Development Nigeria Limited Managing Director, John Zhao, said the company will manufacture and assemble solar panels, battery storage systems and hybrid inverters for residential, commercial and industrial users. The company also plans to provide engineering design, system integration, installation and maintenance services.

The project will shorten equipment delivery timelines for developers, support local skills development and strengthen Nigeria's renewable energy supply chain as demand for off-grid electricity continues to grow.