Nigeria Boosts Solar Production Capacity to 300 Megawatts, Aims to Establish 3.7 Gigawatt Solar Hub

Nigeria is pushing forward with plans to boost local production of renewable energy, with its solar panel production capacity rising from 120 megawatts to 300 megawatts over the past two years, and a further 3.7 gigawatts in the works, as it seeks to establish itself as a key player in West Africa.

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This significant growth is being driven by government policies designed to draw in private sector investment, according to Dr. Abba Aliyu, Managing Director of the Rural Electrification Agency, who shared these insights during a webinar hosted by the African Association of Energy Journalists and Publishers.

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In 2025, Nigeria secured around $425 million to set up eight manufacturing plants for renewable energy, and domestically produced solar panels are now being exported to Accra, Ghana, from Lagos, highlighting the country's growing presence in the regional market.

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Dr. Aliyu attributed the increase in investor confidence to regulatory reforms, particularly the Nigerian Electricity Regulatory Commission's 2026 Mini-Grid Regulations, which have increased the allowable mini-grid capacity from 1 megawatt to 5 megawatts, and up to 10 megawatts for interconnected systems.

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These reforms have enabled the development of larger renewable energy projects, and have also simplified the licensing process and clarified grid interactions, according to Dr. Aliyu, who noted that the expanded mini-grid capacity could support cross-border electricity trade, particularly in border communities.

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The West African Power Pool is driving grid connectivity, but Dr. Aliyu emphasized the need for a complementary off-grid market across the region, which would help to enhance regional integration and electricity access.

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Nigeria's electricity access model is gaining traction across Africa, with countries such as Mozambique, Benin Republic, Burkina Faso, Niger, Chad, Mauritania, and Mauritius studying the framework for possible adoption.

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The Distributed Access through Renewable Energy Scale-Up programme, which Dr. Aliyu highlighted, is the world's largest publicly funded renewable energy access initiative, aiming to provide electricity access to 17.5 million Nigerians by connecting over 2.5 million households and deploying 1,350 mini-grids.

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The programme, which includes 250 interconnected systems, is funded with $750 million and is expected to attract an additional $1.1 billion in private investment through a results-based financing model that requires developers to commit capital upfront.

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Partnerships with institutions such as Citibank Nigeria, Lotus Bank, and the International Finance Corporation demonstrate the growing confidence in Nigeria's renewable energy strategy, according to Dr. Aliyu.