• Nigeria launches 1 GW solar plant to produce 2 million panels a year, aiming to cut $600 million in annual imports.
• The factory is expected to create up to 2,000 jobs and supply panels for schools, hospitals, and mini grids.
• Imports from China still dominate; PwC warns against abrupt bans that could stall off-grid power growth.

Nigeria has launched a joint venture to build its first large-scale solar panel factory, aiming to produce approximately two million units per year and add one gigawatt of renewable energy capacity. The project, announced on September 17 by the Rural Electrification Agency, state-backed InfraCorp, and Dutch firm Solarge BV, is designed to reduce import dependence and accelerate electrification in Africa’s most populous nation.

More than 85 million Nigerians still lack reliable power, according to the World Bank. The shortfall forces households, businesses, and government offices to spend an estimated $5 billion annually on diesel generators. Officials say local production can support the country’s National Public Sector Solarisation Initiative, which targets schools, hospitals, and other facilities, while reducing the cost of off-grid projects that already supply millions of users.

At full capacity, the plant will produce approximately 5,500 panels per day, each with an average capacity of 500 watts. That output is equivalent to one gigawatt of installed solar per year, enough to power more than 1.5 million households. The REA has committed to purchasing at least 200 megawatts annually for five years, thereby ensuring a stable base level of demand for the venture.

Nigeria’s solar market has expanded quickly but remains dominated by imports from China and Turkey. Industry estimates place the value of solar modules and accessories sold locally at over $600 million in 2024, with a projected growth rate of 15% to 20% annually. Almost all demand is concentrated in off-grid and mini-grid systems. The International Renewable Energy Agency has assessed Nigeria’s solar potential at over 200 gigawatts, underscoring the opportunity for a domestic manufacturing hub.

The factory is expected to reduce costs for developers by lowering shipping expenses and mitigating currency risks, while creating 1,000 to 2,000 direct jobs and generating additional employment opportunities in metal fabrication, logistics, and packaging. Local content requirements aim to source 50% of goods and labor from Nigerian firms within three years, giving small manufacturers and suppliers a foothold in a market long dominated by imports.

Replacing diesel generation with solar could avoid as much as 2 million tons of carbon dioxide annually, the equivalent of removing 300,000 cars from the road, according to officials. Solarge says its recyclable thermoplastic technology reduces lifecycle emissions by half compared with conventional silicon panels, adding a climate-friendly dimension to Nigeria’s industrial push.

Yet the broader picture highlights the scale of the challenge. Nigeria imported 1,721 megawatts of Chinese panels in 2024, making it Africa’s second-largest buyer after South Africa. More than four million modules worth $200 million entered the country that year, though first-quarter imports in 2025 plunged 89% to ₦125 billion as policy uncertainty set in. PricewaterhouseCoopers warns that an abrupt curb on imports could “leave millions in the dark” and argues for a phased three- to five-year transition that combines quotas, tariffs, and procurement support. For now, the new factory signals intent, but Nigeria must balance its industrial ambitions with the reality of deep reliance on foreign supply chains.

Idriss Linge