• Nigeria increases local solar panel manufacturing capacity from 120 MW to 300 MW.
• Authorities target import substitution and rural electrification expansion.
• Pipeline includes 3.7 GW of solar projects and $425 million invested in 2025.

Nigeria is expanding local solar panel manufacturing as it seeks to increase electricity access and reduce reliance on imports. The country recorded an electrification rate of about 61.2% in 2023 and continues to target underserved rural areas.

The Rural Electrification Agency announced on Wednesday, April 22, that it has increased domestic solar panel production capacity.

“We have moved from a local manufacturing capacity of about 120 megawatts to around 300 megawatts today,” said Abba Aliyu, Director General of the agency, during a webinar organized by the Association of Energy Journalists and Publishers of Africa in Lagos.

The increase in solar panel production capacity aligns with policy measures introduced by the Rural Electrification Agency to promote local manufacturing and reduce import dependence.

The agency is implementing incentive schemes and forming partnerships with private-sector players to support investment in the sector. At the same time, the government is deploying electrification projects, particularly off-grid systems, which are driving demand for solar equipment.

Local companies and industrial partners are contributing to domestic production. These panels are supplying electrification projects in rural and peri-urban areas, where electricity access remains limited.

Only 27% of Nigeria’s rural population had access to electricity in 2022, according to Statista, underscoring the scale of the challenge.

In response, the Rural Electrification Agency said it is developing a solar project pipeline totaling about 3.7 gigawatts. The agency added that it mobilized an estimated $425 million in investments in 2025 to support production, installation, and related infrastructure.

Nigeria is also exporting locally manufactured solar panels to regional markets, including Ghana.

The Rural Electrification Agency completed the installation of more than 200 mini-grids in 2025 under the Nigeria Electrification Project (NEP), marking the conclusion of that program. These systems targeted rural electrification.

Meanwhile, the Distributed Access through Renewable Energy Scale-Up (DARES) program is planning to install 1,350 mini-grids. About 900 units are already under construction.

The government secured $750 million in funding for the DARES program, which President Bola Tinubu approved. The initiative is targeting nearly 17.5 million beneficiaries. Nigeria expects to attract $1.1 billion in private investment into the sector, according to earlier reporting by Ecofin Agency.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange J.A de Berry Quenum