Nigeria is taking steps to reduce its reliance on imported solar equipment as more than 85 million people still lack reliable access to grid electricity.
The Rural Electrification Agency (REA) signed a Joint Development Agreement with Ecotech Development Nigeria Limited on Tuesday in Abuja. The agreement will establish a solar panel and battery assembly and manufacturing facility in Nigeria.
The initiative is part of the Federal Government’s plan to improve electricity access, create employment opportunities and retain more foreign exchange within the country.
Speaking during the signing ceremony, the Managing Director and Chief Executive Officer of the REA, Abba Aliyu, described the agreement as a major milestone in Nigeria’s renewable energy sector.
According to him, it is the first time a Tier-1 Chinese renewable energy company has committed to setting up manufacturing and assembly operations in Nigeria.
Aliyu said more than 85 million Nigerians, representing nearly 40 per cent of the country’s population, still do not have reliable access to electricity from the national grid.
He noted that although many communities across Nigeria have adopted solar energy, the major components are still imported.
He said solar panels, batteries and inverters used in most electrification projects are manufactured outside Nigeria, leaving the country to provide only the market while other nations benefit from industrial growth.
Aliyu added that every dollar spent importing solar equipment could have been invested in Nigerian factories or paid to local technicians.
He said the continued dependence on imported renewable energy equipment has deprived Nigeria of jobs, technical expertise and valuable foreign exchange.
Under the agreement, the REA, through its renewable asset management subsidiary, will support the annual offtake of up to 200 megawatts of solar photovoltaic modules and 200 megawatt-hours of battery energy storage systems manufactured by Ecotech in Nigeria.
The agency explained that the agreement is a non-exclusive framework designed to encourage local manufacturing without replacing existing public procurement regulations.
Aliyu said local production would reduce import dependence, shorten delivery timelines for developers, strengthen Nigeria’s technical capacity, create jobs and retain more foreign exchange within the economy.
He added that the project aligns with President Bola Tinubu’s goal of building a $1 trillion economy by 2030 through private sector-led industrialisation.
Nigeria’s solar energy sector has experienced significant growth in recent years.
Solar panel imports exceeded $200 million in 2023, representing more than four million panels used mainly for captive power generation.
According to the Nigerian Electricity Regulatory Commission (NERC), the value of imported solar panels reached about N125.29 billion in the first quarter of 2025.
The increase has been driven by government programmes and private sector investments, especially in rural and off-grid communities where decentralised energy solutions remain essential.
In 2024, Nigeria added 63.5 megawatts of solar power, bringing the country’s total installed solar capacity to 385.7 megawatts.
Data from the REA also shows that Nigeria requires at least five million off-grid solar systems to provide electricity to underserved and unserved communities.
The REA has expanded electricity access through programmes such as the Rural Electrification Fund, the Nigerian Electrification Project and the Distributed Access through Renewable Energy Scale-Up Project.
The African Development Bank (AfDB) also approved a $500 million loan for Nigeria’s Economic Governance and Energy Transition Support Programme, alongside a $100 million loan to the Emerging Africa and Asia Infrastructure Fund to support sustainable infrastructure development across Africa.
