Solar Manufacturing Gets $500m Boost from Govs, Investors – Adelabu
The Federal Government, in partnership with state governors and private investors, has secured nearly $500m to establish solar manufacturing plants across Nigeria, the Minister of Power, Adebayo Adelabu, has disclosed.
Adelabu made this known at the ongoing Nigeria Energy Conference in Lagos, where he also announced that Nigeria had begun exporting locally manufactured solar panels to Ghana, marking a milestone in the country’s renewable energy drive.
According to him, following the recently concluded Nigerian Renewable Energy Innovation Forum organised by the Rural Electrification Agency, the government secured agreements worth nearly $500m with state governors and private investors. The initiative, he said, would add close to 4 gigawatts of solar manufacturing capacity per annum, almost 80 per cent of Nigeria’s current total power generation capacity.
“At the recently concluded Nigerian Renewable Energy Innovation Forum, we successfully activated agreements totalling almost $500m with state governors and investors. What will this do? It will bring on stream nearly 4 gigawatts per annum of solar manufacturing capacity, equivalent to almost 80 per cent of our current national generation capacity,” he stated.
He explained that the deals would support local production of solar panels, batteries, and meters, reducing dependence on imports and positioning Nigeria as a key player in the regional energy market.
“Companies that will manufacture solar panels here and that will manufacture batteries and meters here, we can give them deposits. With this scale of renewable energy production coming online, Nigeria is not only positioned to achieve its domestic renewable energy transition targets but also to serve as the regional power market,” Adelabu said.
He said this would strengthen the export of renewables, a feat he said was achieved last week with Ghana.
“Nigeria will serve as the regional power market in terms of the hub, which we recently started doing with the export of Nigerian-based solar panels to Ghana just last month. Yes, we exported solar panels manufactured in Nigeria to Ghana, and we will not stop. We will be the hub for this, not just for West Africa, but for the entire African market,” he stated.
The minister noted that the move would have far-reaching benefits for the economy, including job creation, foreign exchange earnings, and faster deployment of solar energy infrastructure.
He added that training and empowering Nigerian youths in renewable energy technologies would be key to sustaining the progress.
Adelabu assured investors that the government was creating an enabling environment for private sector participation across the power value chain, particularly in transmission.
“Nigeria’s power sector remains open and ready for business more than ever before. The government is ready to provide the right and conducive atmosphere to make this environment investor-friendly.
“As rational investors, recovery of your principal and margin on principal are very important, and the way the power sector is configured, you will never lose your investment; you will be proud to be an investor in Nigeria,” he added.
The REA Managing Director, Abba Aliyu, once said that efforts were ongoing to change the narrative and domesticate the manufacturing of renewable equipment in the country.
“Over N200bn has been spent on the importation of PV panels into the country. While there is a need for that importation, one of the key things our agency is striving for is domesticating the manufacturing of this renewable equipment. Lagos, being the centre of excellence, is going to lead a total war in that domestication,” Aliyu said in Lagos in April.