A Turning Point for Nigeria’s Solar Industry
According to a recent report from The PUNCH, Nigeria has hit a milestone: in October 2025, imports of fully assembled solar panels fell as the country ramped up local manufacturing capacity. Instead of importing ready-made panels, more solar cells are now being imported — to be assembled domestically.
The Rural Electrification Agency (REA) described this shift as a “historic industrial turn,” signalling Nigeria’s evolution from merely consuming solar solutions to building them.
Import Statistics — The Decline
In the first quarter of 2025, the value of imported solar panels dropped sharply, falling 89% to ₦125.29 billion, down from ₦237.31 billion in the previous quarter.
Meanwhile, the amount of solar cells (rather than finished panels) imported for local assembly surpassed fully assembled panel imports — a first in Nigeria’s history.
The drop in imports does not mean less demand: rather, demand is being met domestically through increased production.
Local Production Gains Momentum
REA reports that Nigeria’s installed solar module manufacturing capacity has risen dramatically — from 110 megawatts (MW) to around 600 MW.
Several manufacturing plants across the country now contribute: for example, a 100 MW facility in Lagos and a 250 MW facility in Abuja.
The number of renewable-energy service firms operating in Nigeria has grown too: reportedly, over 50 companies are now active — up from about 10 a few years ago.
What’s Driving the Shift: Policy & Strategy
This pivot is supported by the federal government’s renewed push to prioritise local content under the Nigeria First Policy.
The goal: reduce dependence on imports, conserve foreign exchange, create jobs, and build a self-sustaining solar manufacturing industry capable of meeting Nigeria’s clean-energy needs.
A recent partnership between REA and Sun King aims to accelerate domestic solar manufacturing — potentially saving Nigeria up to US$150 million in avoided imports over the next five years.
Implications for Nigeria’s Energy Future
Greater local value-addition: Assembling panels locally means more jobs in manufacturing, logistics, testing, and distribution.
Lower import dependence: Reduces pressure on foreign reserves and exposure to global supply chain disruptions.
Faster delivery & improved access: Local production can cut delays — a big plus for households, businesses and institutions needing off-grid power
Boost for renewable energy adoption: A stronger domestic solar industry would likely reduce the cost of solar systems and make sustainable energy more attainable across Nigeria.
What to Watch / Challenges Ahead
Domestic manufacturers need to maintain high quality — substandard panels could undermine confidence. Some experts caution that suddenly banning imports could create short-term supply shortages and slow energy rollout.
Scaling production requires stable supply of raw materials, skilled labour, and reliable logistics. Local industry must also compete with low-cost imported panels unless supportive policies continue.
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