This position was underscored by Abba Aliyu, the Managing Director and CEO of the Rural Electrification Agency (REA), during a roundtable discussion and Memorandum of Understanding (MoU) signing with the Lagos State Government in Victoria Island on Monday. The MoU itself focuses on electrifying rural communities within Lagos State.
Aliyu stated that concerted efforts are underway to change the narrative from reliance on imports to building local capacity for renewable energy equipment production. "Over N200bn has been spent on the importation of PV panels into the country," Aliyu noted. "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."
He cited tangible progress, pointing to a PV panel assembly plant in Ikotun, Lagos. According to Aliyu, this facility initially had a 10-megawatt capacity but has expanded by an additional 100 megawatts through collaboration with the REA. Furthermore, he revealed that REA is close to signing a joint development agreement with Green World for a major $150 million investment in a lithium battery assembly plant, also to be located in Lagos.
This drive for local production echoes recent statements from the Minister of Science and Technology, Uche Nnaji. The Minister confirmed the Federal Government's willingness to actively support local solar panel manufacturers while restricting imports, leveraging the capabilities of entities like the National Agency for Science and Engineering Infrastructure (NASENI). "With NASENI here... it has a factory that has started producing solar panels," Nnaji stated previously, adding, "...through our Presidential Executive Order No. 5, we will stop all these importations of solar panels. We will support our local industries to grow."
However, this policy direction has raised concerns within the industry. The Renewable Energy Association of Nigeria (REAN) acknowledged the vital role solar energy plays, calling it a "beacon of hope" for millions of Nigerians lacking access to reliable grid power. They stressed that countless businesses, communities, schools, and health facilities depend on these solutions.
REAN cautioned against implementing an import ban prematurely. "The renewable energy sector has grown significantly, attracting investment and fostering innovation," the association argued. "A ban on solar imports, without first strengthening local production capabilities, risks derailing this progress." They warned such a move could negatively impact energy access and the burgeoning renewable energy market.
As the government pursues its goal of energy self-sufficiency and industrial development through local manufacturing, particularly focusing on Lagos as a potential hub, it faces the challenge of balancing these objectives with the immediate needs of consumers and the concerns of the existing renewable energy sector about maintaining momentum in energy access.