More than 85 million Nigerians, representing nearly 40 per cent of the country’s population, do not have dependable access to electricity from the national grid, according to the Rural Electrification Agency (REA).
The agency’s Managing Director and Chief Executive Officer, Abba Aliyu, disclosed this in Abuja during the signing of a Joint Development Agreement with Ecotech Development Nigeria Limited to establish a solar panel and battery assembly and manufacturing plant in Nigeria.
Aliyu said the partnership marks a significant step in Nigeria’s push to expand renewable energy and strengthen local manufacturing, noting that it is the first time a leading Chinese renewable energy company has committed to setting up production and assembly operations in the country.
He explained that despite progress recorded through programmes such as the Rural Electrification Fund, the Nigerian Electrification Project, and the Distributed Access through Renewable Energy Scale-Up initiative, millions of Nigerians still lack reliable electricity, highlighting the need for greater investment in alternative energy solutions.
Aliyu also expressed concern over Nigeria’s heavy reliance on imported renewable energy equipment. According to him, most solar installations across the country depend on foreign-made solar panels, batteries and inverters, limiting opportunities for local industrial growth, job creation and technology transfer.
He said developing domestic manufacturing capacity would help retain foreign exchange, create skilled employment and reduce the cost and delivery time of renewable energy projects.
Under the agreement, the REA, through its renewable asset management subsidiary, will facilitate the annual offtake of up to 200 megawatts of locally manufactured solar photovoltaic modules and 200 megawatt-hours of battery energy storage systems produced by Ecotech Development Nigeria Limited.
Aliyu clarified that the arrangement does not replace existing procurement procedures, stressing that all purchases will continue to comply with public procurement regulations and will be assessed based on cost, quality and performance.
He added that the initiative aligns with the Federal Government’s industrialisation agenda and its goal of building a $1 trillion economy by 2030 through increased private sector participation.
Speaking at the event, Managing Director of Ecotech Development Nigeria Limited, John Zhao, said the company will manufacture and assemble solar panels, battery storage systems and hybrid inverters for residential, commercial and industrial users. He added that the company will also provide engineering, installation, system integration and maintenance services to support Nigeria’s clean energy transition.
Nigeria continues to face a wide electricity access gap, particularly in rural communities, prompting the government to promote mini-grids, solar home systems and local production of renewable energy technologies as part of efforts to improve power supply and reduce dependence on imports.
