Nigeria Plans To Build 1.2 GW Of PV Module Capacity
Mar 14, 2025
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Nigeria's Rural Electrification Agency (REA) is taking major steps to boost the country's foreign exchange earnings by localising the renewable energy sector through the establishment of a 1.2GW PV module assembly plant in the country.
The initiative aims to make Nigeria a hub for renewable energy in West Africa and solve the major problem of 86 million Nigerians currently lacking access to electricity.
At the same time, the bureau signed a Memorandum of understanding (MoU) with 10 renewable energy service companies (RESCOs), including Oando Clean Energy, to generate 948 megawatts of electricity from renewable sources.
Speaking at the ceremony in Abuja, Abba Aliyu, Director-General of the Rural Electrification Bureau, said it was recorded that through the intervention of IVS, Nigeria has actually achieved an increase in domestic PV panel assembly and manufacturing capacity of about 600 MW.
According to him, among the companies that have signed cooperation agreements or memorandums of understanding, Oando Clean Energy has committed to implement projects of 110 MW.
"It is recorded that Oando has an installed capacity of 110 MW," he said. One of our partners is about to complete a 250 MW capacity project in Abuja, and a PV company has started production of 100 MW capacity PV panels in the Lagos Free Trade Zone. In addition, we have Green Connect, a company that is about to complete a 150 megawatt PV panel assembly plant."
Abba Aliyu also said that the federal government has approved the establishment of a renewable asset management company with a registered capital of N500 million, aiming to raise N1 trillion for interventions in the sector without loans and grants.
"To ensure the sustainability of all these interventions, the Rural Electrification Authority has received approval to set up a renewable Asset management company," he said. "This company will put on its balance sheet all large assets and infrastructure to be deployed in various universities, which are worth almost N500 million. "This company will manage these assets and use them to raise almost 1 trillion naira so that we can continue to intervene even without loans and grants."
He also noted that in order to reduce management costs, they have secured N100 billion in funding for the installation of solar equipment for public sector institutions. He revealed that the Rural Electrification Bureau has held in-depth discussions with the Japan International Development Agency, which will provide an additional $200 million in co-financing for the Distributed Access Scale Renewable Energy Projects (DARES), which would bring the total funding to $950 million (from $750 million).
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