Business News

Nigeria Targets Local Manufacturing to End Dependence on Imported Renewable Energy

Nigeria is pushing to manufacture clean energy technologies locally to reduce dependence on solar imports, build a competitive green workforce, and boost industrialization. While global clean energy investment exceeds $2 trillion annually, Africa attracts just 2–3%. Experts warn that an immediate import ban could worsen energy poverty for 86 million Nigerians without grid access. With only 5 GW of its 14 GW capacity delivered through the grid, effective policy execution is critical.

E
Editorial Team
Aug 10, 2026
3 min read
Nigeria Targets Local Manufacturing to End Dependence on Imported Renewable Energy

The Federal Government of Nigeria is pushing for a strategic transition toward local manufacturing of clean energy technologies, urging the nation to move beyond being a consumer of imported solar equipment and establish itself as a regional hub for renewable energy production. Speaking at the Lagos Solar Forum organized by the Global Initiative for Food Security and Environmental Protection alongside the Nigeria Climate Information Centre, Solar Power Nigeria, and Greenfaith Nigeria presidential aide Prof. Olamide Fagbuji emphasized that localizing production is vital to the nation's broader industrial strategy. As the Senior Special Assistant to the President on Climate Technology and Operations, Fagbuji highlighted that Nigeria must deliberately position itself to produce, assemble, and export solar panels, batteries, and inverters. This approach aligns directly with the President's Nigeria First industrialization agenda championed by the National Agency for Science and Engineering Infrastructure, while leveraging the country's vast solar potential. which averages between five and seven kilowatt-hours per square metre per day across much of the country."

This push for domestic production comes amid a massive global expansion in clean energy investment, which currently exceeds $2 trillion annually and is projected by the International Energy Agency to reach $4.5 trillion per year by 2030. Despite hosting 20% of the global population and some of the richest solar resources in the world, Africa currently attracts only 2% to 3% of these international funds, creating a major gap between regional potential and actual capital deployment. While expanding local manufacturing could help bridge this shortfall, experts caution that policy changes must be carefully managed. Environmental advocate Dr. Michael David, Executive Director of GIFSEP, warned against implementing an immediate or blanket ban on imported solar equipment. Pointing to World Bank data showing that roughly 86 million Nigerians still lack grid access, David stressed that solar technology remains a critical lifeline for off-grid communities and businesses, making a sudden import ban a potential trigger for deeper energy poverty. Instead, stakeholders advocate for a phased strategy that offers tax relief, local assembly incentives, and affordable financing prior to enforcing strict import limits.

Enjoying this article? Share it with your network!

The urgency of this transition is underscored by Nigeria's long-standing grid delivery challenges. Energy analyst Daniel Awolaja noted that while the nation boasts approximately 14 GW of installed power generation capacity, only around 5 GW is consistently delivered through the national grid. Although Nigeria attracted nearly $100 billion in energy investments over the past decade making it the second-largest recipient in Africa, roughly 92% of those funds were directed toward fossil fuels, leaving renewables and transmission infrastructure underfunded. Even with positive momentum, such as adding 3 GW of overall capacity and over 800 MW of decentralized solar in 2025 alone, severe distribution bottlenecks remain the primary obstacle. Addressing these structural constraints, as Senior Director of the Secure Energy Project Chris Kif noted, will require government agencies, private developers, and civil society organizations to break down silos and work under a unified framework to expand clean energy access across the country.


Information provided by Edfrica is for awareness purposes only and does not constitute a guarantee or endorsement.

You might also like