REA Targets 3.7GW Local Solar Panel Production

The Rural Electrification Agency (REA) has unveiled plans to establish 3.7 gigawatts (GW) of local solar panel manufacturing capacity by the end of 2027, as Nigeria steps up efforts to improve electricity access and reduce reliance on imported renewable energy equipment.

Speaking in Abuja during a benchmarking visit by officials of the Zanzibar Utilities Regulatory Authority (ZURA), REA Managing Director, Engr. Abba Aliyu, said the agency is encouraging Chinese solar manufacturers to set up production facilities in Nigeria. He added that locally assembled solar panels are already being exported from Lagos to neighbouring Ghana.

According to Aliyu, expanding solar panel manufacturing will reduce imports while strengthening Nigeria’s renewable energy value chain. He noted that falling prices of solar panels and lithium batteries have made off-grid electricity more affordable, helping to expand access to power in underserved communities.

He revealed that Nigeria’s electricity access rate currently stands at 61.2 per cent, leaving about 80 million people without reliable electricity.

To bridge the gap, the REA has adopted a least-cost electrification strategy, selecting the most suitable energy solution for each community instead of relying solely on grid expansion. The agency has mapped more than 700,000 communities nationwide and plans to serve 45 per cent through solar home systems, 31 per cent through mini-grids, and the remaining 24 per cent through grid extension.

Aliyu also disclosed that the agency has developed one of Africa’s largest geospatial electricity databases, covering more than 51,000 health facilities, 11,000 markets, schools, factories, dams, electricity feeders and existing mini-grids to support investment planning.

He warned that electricity demand will continue to rise as Nigeria’s population grows, more sectors become electrified and technologies such as artificial intelligence and data centres increase energy consumption.

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