Nigeria has taken a significant step toward boosting its renewable energy sector with the signing of a major agreement for the construction of a 1.2-gigawatt (GW) solar module assembly plant. The deal, inked between Nigeria’s Rural Electrification Agency (REA) and Lagos-based renewable energy developer Oando Clean Energy, is part of a broader $950 million initiative known as Distributed Access through Renewable Energy Scale-up (DARES). This initiative aims to enhance domestic production of solar photovoltaic (PV) components and expand access to clean energy across the country.

The project will not only establish a state-of-the-art solar module assembly plant but also include the development of a new solar PV park to generate electricity. The first phase of the manufacturing facility, with a capacity of 600 megawatts (MW), is expected to be operational by next year. Once completed, the plant will supply solar modules to the local Nigerian market and other African nations, positioning Nigeria as a key player in the continent’s renewable energy landscape. Notably, the facility will be the first of its kind in Africa to incorporate a recycling line, underscoring a commitment to sustainability and circular economy principles.

The initiative is being financed by the World Bank and the Japan International Cooperation Agency (JICA), highlighting the international support for Nigeria’s renewable energy ambitions. The project aligns with global efforts to combat climate change and transition to cleaner energy sources, while also addressing energy access challenges in rural and underserved areas.

In addition to this project, Nigeria is poised to further expand its solar manufacturing capabilities. The country is preparing to sign a joint development agreement with global investment firm Infracorp to establish another 1-GW solar panel assembly hub. This move signals Nigeria’s commitment to becoming a regional leader in renewable energy production and technology.

The development of the 1.2-GW solar module assembly plant and associated PV park is expected to create jobs, stimulate economic growth, and reduce Nigeria’s reliance on fossil fuels. It also represents a critical step toward achieving the country’s energy transition goals and meeting its commitments under the Paris Agreement. As Nigeria continues to invest in renewable energy infrastructure, it sets an example for other nations in the region to follow, demonstrating the potential for solar power to drive sustainable development and energy security.