Nigeria is positioning itself at the forefront of West Africa’s renewable energy transition, with four states signing solar mini-grid agreements on Tuesday, October 14, as part of a $3 billion renewable energy fund aimed at transforming the nation’s power landscape.
The deals were sealed in Abuja during the opening of the Nigerian Renewable Energy Innovation Forum (NREIF).
While declaring the forum open, President Bola Tinubu announced that “in the next three days, at least $400 million worth of contracts will be signed,” marking a strategic pivot away from the country’s fragile national grid toward decentralized solar energy systems, according to Business Insider Africa.
Vice President Kashim Shettima, speaking alongside the Rural Electrification Agency (REA) and other officials, highlighted the government’s focus on creating local value.
“We are determined to reverse solar panel importation into Nigeria,” Shettima said, noting the dominance of Chinese suppliers in Africa’s renewable energy markets. He emphasized that building local capacity would enable Nigeria to reclaim control over its energy future.
At the event’s opening, $435 million in new renewable energy deals were signed under the Nigeria Solar Marketplace initiative. The projects span multiple states.
In Ogun, Renew Power and Tranos will jointly deploy 500 MW and 600 MW of solar capacity. In Lagos, Auxano Solar plans a 150 MW project, while Vene Photovoltaic Technologies will establish a solar panel recycling plant with an annual output of 2,484 tons, in collaboration with Greenlight Planet Sun King Nigeria and Suntisolar Energy Africa.
Akwa Ibom and Kano states will host 500 MW and 600 MW projects respectively, led by Tricell Solar Solutions and IRS Green Energy. In Bayelsa, J Marine Logistics will spearhead implementation, while in the Federal Capital Territory, PVG Solar is set to build a 500 MW plant in partnership with diplomatic missions and SNV.
According to the International Renewable Energy Agency (IRENA), Nigeria’s installed solar capacity rose from 11 MW in 2015 to 102 MW by the end of 2022 and reached 144 MW in 2024.
Despite this progress, the country still imports most of its solar modules, even though it already has an installed solar PV assembly capacity of 131 MW, with plans to scale up to 1,531 MW.
Oando Clean Energy, in collaboration with the REA, is developing a 1,200 MW solar assembly facility, with its first 600 MW production line expected to become operational next year.
Nigeria’s national power system continues to face major challenges. While the country’s total generation capacity stands at around 13,000 MW, the transmission grid can handle only 8,000 MW, and less than 4,000 MW reliably reaches consumers.
As a result, many businesses and high-end users, including the presidency itself, have opted out of the national grid, turning to independent energy sources.
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Speaking at the forum, Vice President Shettima said the $400 million worth of contracts signed at the event would serve as a catalyst for domestic industries involved in smart meter production, battery recycling, and solar panel manufacturing.
He described the initiative as a landmark moment in Nigeria’s energy transition, bringing together more than 1,500 local and international stakeholders.
Shettima projected that Nigeria’s energy transition could unlock an estimated $410 billion in opportunities by 2060, with $23 billion required to expand energy access.
REA Managing Director Aliyu Abba described NREIF as a bridge between ambition and execution, stating, “With over $3 billion worth of ongoing projects, our focus is ensuring that every dollar spent generates maximum domestic value.”
Minister of Power Adebayo Adelabu reaffirmed the government’s “Nigeria First Policy,” adding that emerging partnerships are expected to support nearly 4 GW of solar manufacturing capacity and create new local jobs. “The Electricity Act 2023, tariff reforms, and new subsidy frameworks are reshaping Nigeria’s power sector,” Adelabu said.
International partners also pledged support. German Ambassador Annett Günther reiterated Germany’s commitment to Nigeria’s clean energy agenda through ongoing programmes, calling for a transition that is “green, local, and inclusive.”
The European Union confirmed its continued backing, noting that since 2008, it has invested more than €200 million in Nigeria’s power sector, with an additional €100 million invested since 2021 to help add 400 MW of renewable capacity by 2027, benefiting over five million people.
Viewed through a continental lens, Nigeria’s accelerated move toward domestic solar manufacturing could set a model for other African nations grappling with grid instability.
If successful, the initiative could not only bring stable power to states like Lagos, Kano, and Bayelsa but also create clean industrial jobs and strengthen the country’s energy independence.
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Image Credit: Business Insider Africa
