Key points
- REA says Nigeria is pursuing universal electricity access by 2060 while building 3.7GW of local renewable energy manufacturing capacity.
- Seven companies will establish solar manufacturing facilities across six states under agreements signed at the 2025 Nigeria Renewable Energy Innovation Forum.
- REA warns artificial intelligence and data centres will significantly increase future electricity demand.
- About 85 million Nigerians still lack access to electricity despite the country’s 61 per cent electrification rate.
Main story
The Rural Electrification Agency (REA) has unveiled an ambitious roadmap to achieve universal electricity access by 2060 while developing 3.7 gigawatts of local renewable energy manufacturing capacity, as Nigeria seeks to reduce dependence on imported solar equipment and prepare for rising electricity demand driven by artificial intelligence and digital infrastructure.
Managing Director of the REA, Dr Abba Aliyu, disclosed this while presenting the agency’s electrification strategy to a visiting delegation from the Zanzibar Utilities Regulatory Authority (ZURA) in Abuja.
Aliyu said agreements signed during the 2025 Nigeria Renewable Energy Innovation Forum would establish a combined manufacturing capacity of 3.7GW through partnerships with seven companies across six states.
The projects include photovoltaic manufacturing plants in Kano, Abuja, Ogun, Bayelsa and Akwa Ibom states, as well as a solar panel recycling facility in Lagos.
“We are about to inject 3.7 gigawatts of manufacturing capacity in Nigeria. Already many of Nigeria’s PV panels produced in Lagos have been exported to Ghana.
“We want to reduce the importation of PV panels from China. We are asking Chinese companies to come to Nigeria and establish their factories. By the end of next year, we will have 3.7 gigawatts manufacturing capacity. This is one of the biggest achievements that we have recorded,” he said.
Aliyu attributed the declining cost of renewable energy technologies largely to advances in Chinese manufacturing, noting that lower prices for photovoltaic panels and lithium batteries had made renewable energy the most economically viable option for expanding electricity access.
He said global electricity demand was entering an unprecedented phase driven by population growth, widespread electrification and the rapid expansion of artificial intelligence and data centres.
“The demand for electricity has never been seen before. There are three critical reasons: electrification of everything, population growth and AI and data centres. Electricity is going to determine how health services, education, agriculture and virtually everything else will be done,” he said.
Aliyu said African countries must not only pursue universal electricity access but also prepare for the next wave of electricity demand resulting from technological transformation.
He disclosed that the REA had developed one of Nigeria’s most comprehensive geospatial databases, mapping more than 700,000 communities, over 51,000 hospitals, 11,000 markets, thousands of schools, factories, dams and electricity feeders to support least-cost electrification planning.
According to him, the database enables the agency to determine whether communities should be served through solar home systems, mini-grids or grid extension based on technical and economic considerations.
Aliyu also said Nigeria now has several Renewable Energy Service Companies (RESCOs), many of which have evolved from contractors into utility-scale operators and are expanding into other African countries following reforms to the country’s mini-grid regulations.
Despite ongoing efforts, he said about 85 million Nigerians, representing nearly 40 per cent of the population, still lacked access to electricity, while the country’s electrification rate stood at about 61 per cent.
He added that Nigeria’s average electricity demand was estimated at 25,000 megawatts, compared with peak available supply of about 4,000 megawatts.
To support ongoing projects, Aliyu said the REA currently manages a public finance and grants portfolio worth about $1.23 billion sourced from federal budget appropriations, regulatory funding, development finance institutions, bilateral partners and intervention funds.
Major funding windows include the Distributed Access through Renewable Energy Scale-up (DARES) programme, the Renewed Hope Infrastructure Development Fund, the Nigeria Power Sector Support Initiative and other intervention schemes.
Speaking during the visit, World Bank Consultant to the Zanzibar Electricity Corporation, Dr William Gboney, described Nigeria as one of Africa’s leading countries in off-grid and mini-grid regulation.
Gboney said the visit demonstrated that African countries could increasingly learn from one another in developing sustainable electricity access solutions.
“We don’t necessarily have to travel outside Africa to build capacity or acquire new knowledge. Based on my research, when it comes to off-grid and mini-grid regulation, Nigeria ranks among the best on the continent,” he said.
The issues
Nigeria’s electricity challenge extends beyond expanding access to power. As artificial intelligence, data centres, electric mobility and industrialisation drive higher electricity consumption, the country will need to significantly increase generation capacity while developing local manufacturing for renewable energy technologies to reduce import dependence and strengthen energy security.
What’s being said
“The demand for electricity has never been seen before. There are three critical reasons: electrification of everything, population growth and AI and data centres.” — Dr Abba Aliyu, Managing Director, Rural Electrification Agency.
What’s next
The REA is expected to implement the manufacturing agreements signed with private sector partners while expanding renewable energy deployment through solar home systems, mini-grids and grid extension as part of its long-term electrification strategy.
Bottom line
The REA’s strategy signals a broader shift from expanding electricity access alone to building a domestic renewable energy manufacturing industry. If successfully implemented, the plan could strengthen Nigeria’s clean energy supply chain, reduce reliance on imports and better position the country to meet rising electricity demand driven by technological and economic transformation.
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