Governors, Investors Mobilise $500m for Solar Manufacturing – Adelabu

Nigeria’s Minister of Power, Chief Adebayo Adelabu, has announced that state governors in collaboration with local and international investors have jointly mobilised over $500 million to boost solar panel manufacturing and renewable energy production across the country. The initiative, he said, is part of the Federal Government’s drive to achieve energy security, reduce dependence on fossil fuels, and promote sustainable industrial growth.

Speaking in Abuja at the Nigeria Energy Transition and Investment Summit, Adelabu disclosed that the fund would support the establishment and expansion of solar component manufacturing plants in various parts of the country, particularly in states with strong renewable energy potential. He said the move aligns with President Bola Tinubu’s Renewed Hope energy agenda aimed at expanding access to affordable and clean electricity for millions of Nigerians.

According to him, the solar manufacturing programme is designed to accelerate Nigeria’s shift toward renewable energy while creating jobs and supporting small and medium-scale enterprises in the power value chain. “We are collaborating with the Nigerian Governors’ Forum and a consortium of investors to raise $500 million for the development of solar panel assembly plants and related infrastructure. This initiative will reduce import dependence and promote local content in renewable energy production,” the minister stated.

Adelabu explained that the government’s strategy focuses not only on energy generation but also on building a robust local manufacturing base capable of sustaining future projects. “Our goal is to domesticate solar technology. We want Nigerian companies to design, assemble, and maintain solar systems using locally produced components,” he added.

The minister highlighted that the solar manufacturing initiative would complement ongoing rural electrification projects aimed at bridging the electricity access gap. He noted that several states, including Kaduna, Nasarawa, Ogun, and Akwa Ibom, have already indicated interest in hosting solar manufacturing hubs to drive economic diversification and industrial growth.

According to Adelabu, Nigeria’s abundant solar resources make it well-positioned to become a leading player in Africa’s clean energy market. “We receive some of the highest solar irradiation levels in the world, yet we import over 80 percent of solar equipment. This project will reverse that trend,” he said.

The $500 million investment, he explained, would be deployed through a public-private partnership (PPP) framework to ensure accountability, technical efficiency, and sustainability. The partnership involves key stakeholders, including the Rural Electrification Agency (REA), the Nigerian Sovereign Investment Authority (NSIA), and the Nigerian Electricity Regulatory Commission (NERC).

Industry experts have praised the initiative, describing it as a major step toward achieving Nigeria’s commitment to net-zero emissions by 2060. The Director-General of the Energy Commission of Nigeria (ECN), Dr. Mustapha Abdullahi, noted that local solar manufacturing would help stabilise electricity supply and lower the cost of renewable energy solutions. “The dependency on imported panels increases project costs. With local manufacturing, we can deliver power more affordably while creating employment,” Abdullahi said.

Similarly, the President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, lauded the partnership, stating that it would help revive Nigeria’s industrial base. He said: “Investments in renewable energy manufacturing will boost the economy by encouraging value addition, attracting foreign direct investment, and reducing capital flight.”

Adelabu further revealed that discussions are ongoing with foreign partners from Germany, China, and the United Arab Emirates, who have expressed interest in supporting the Nigerian solar manufacturing ecosystem. He said these investors would bring advanced technology, technical expertise, and funding to enhance the sector’s competitiveness.

The minister assured Nigerians that the Federal Government remains committed to creating an enabling environment for private sector participation in renewable energy. He noted that reforms are being implemented to simplify licensing, provide tax incentives, and promote research and innovation in clean energy production. “We are introducing fiscal incentives for companies that invest in local solar panel manufacturing, including tax holidays and import duty waivers on essential raw materials,” he disclosed.

He also highlighted the importance of training and human capital development to sustain the initiative. According to him, the government is partnering with universities, polytechnics, and technical institutes to establish renewable energy centres that will train engineers, technicians, and entrepreneurs in solar technology.

Despite the optimism, some analysts have urged the government to address key challenges such as inadequate infrastructure, limited access to foreign exchange, and inconsistent policy implementation, which could hinder progress. Energy economist, Dr. Emmanuel Akindele, warned that while the project is commendable, Nigeria must ensure transparency in project execution. “To make this initiative successful, we must have a clear implementation roadmap and proper monitoring to avoid the pitfalls that have derailed past projects,” he said.

In addition, renewable energy advocate, Mrs. Funke Adebayo, emphasised the need for community involvement in the project’s rollout. “Solar energy development should not be limited to industrial centres. Rural communities, especially in northern and southern hinterlands, must also benefit directly from this initiative,” she noted.

The Power Minister reiterated that the solar manufacturing initiative would not only strengthen Nigeria’s energy independence but also position the country as a regional hub for renewable energy production and export. “This is not just about electricity; it’s about industrialisation, employment, and economic growth,” Adelabu concluded.

 

With the global energy transition accelerating, Nigeria’s $500 million solar manufacturing drive is expected to play a critical role in bridging its power deficit, reducing emissions, and fostering sustainable growth. If successfully implemented, the project could signal a major leap toward the nation’s clean energy future and reaffirm its commitment to renewable development on the African continent.