The Federal Government’s focus on local solar panel manufacturing represents a promising economic strategy if implemented effectively. This initiative aims not only to secure a substantial $40 billion from the World Bank and African Development Bank (AfDB) power finance initiative but also to provide Nigeria with a unique opportunity to turn a national challenge into a significant economic and energy advantage. By advancing local solar panel production, the government can close the energy gap and position Nigeria as a regional leader in renewable energy, generating sustainable jobs and fostering innovation.
The current energy crisis is alarming: Nigeria’s national electricity grid has collapsed twice this year, with 12 collapses and disturbances reported in 2024 alone. These events highlight the urgent need to diversify toward solar and other renewable energy sources.
With abundant sunshine and a critical electricity access gap, Nigeria is at a crucial turning point. Similar to the White House in the United States, which combines solar energy with grid power, Nigeria’s government has recently allocated a N10 billion budget for solar energy at the presidential villa. This strategic move signifies a strong commitment to economic sovereignty and a self-reliant energy future. Led by the Rural Electrification Agency (REA), it recognizes that the path to widespread energy access and economic growth lies in domestic innovation and production rather than reliance on imports.
During the launch of the Next Generation Renewable Energy Service Company (RESCO) programme in Abuja, REA Managing Director Abba Aliyu stressed the government’s determination to transform its energy deficit into an economic opportunity. He highlighted that the $410 billion needed for Nigeria’s energy transition plan and the $40 billion required to close access gaps should benefit local innovators instead of foreign importers. Despite having the largest population without electricity access in Africa, Nigeria is underrepresented in the global renewable energy job market. “We must localize solutions through finance, infrastructure, talent, and manufacturing. The access gap is not merely a burden; it is our chance to lead Africa’s energy future,” Aliyu asserted.
Under President Bola Tinubu’s administration, Nigeria has secured a historic $750 million in public-sector renewable energy funding—one of the largest amounts globally. This funding marks a significant shift in efforts to build infrastructure and strengthen the domestic renewable energy value chain.
The urgent need for the $40 billion required to address Nigeria’s electricity access deficit underscores the importance of this policy. Allowing such a large sum to flow out of the country, enriching foreign manufacturers and exporters, would be a monumental missed opportunity. Instead, directing these funds into a growing local solar industry promises a range of benefits that could fundamentally reshape Nigeria’s economic landscape.
