Key points
- REA and Ecotech sign agreement for annual offtake of 200MW of locally manufactured solar panels and 200MWh of battery storage systems.
- Government says the partnership will reduce import dependence, create jobs and deepen local manufacturing.
- REA says 85 million Nigerians still lack reliable access to grid electricity.
Main story
The Rural Electrification Agency (REA) and Ecotech Development Nigeria Limited have signed a Joint Development Agreement aimed at expanding local solar manufacturing, strengthening technology transfer and accelerating Nigeria’s renewable energy industrialisation.
The agreement establishes a framework for the annual offtake of up to 200 megawatts (MW) of locally manufactured solar photovoltaic modules and 200 megawatt-hours (MWh) of battery energy storage systems.
The initiative is expected to reduce Nigeria’s dependence on imported renewable energy equipment while creating jobs, conserving foreign exchange, expanding local technical capacity and supporting the Federal Government’s clean energy and industrial development agenda.
Speaking at the signing ceremony in Abuja, the Minister of State for Industry, Sen. John Enoh, described the agreement as a strategic partnership that aligns with the Nigeria First Policy by promoting local manufacturing, innovation and value addition.
Enoh said the success of the policy would depend on the collective commitment of government, businesses and citizens to patronise locally manufactured products and services.
He added that the Federal Government would increasingly use public procurement to stimulate demand for locally produced goods and support industrial development.
According to him, Nigeria also has an opportunity to leverage declining global solar technology costs to become a competitive manufacturing hub for solar panels, batteries, inverters and other clean energy technologies.
The Managing Director of REA, Abba Aliyu, described the agreement as a watershed for Nigeria’s renewable energy sector, noting that it represented the first commitment by a Tier-One Chinese renewable energy company to establish manufacturing and assembly operations in the country.
Aliyu said more than 85 million Nigerians, representing about 40 per cent of the population, still lacked reliable access to grid electricity, making local manufacturing critical to accelerating electrification.
He said the agreement would allow REA, through its renewable asset management subsidiary, to facilitate the annual offtake of up to 200MW of solar modules and 200MWh of battery energy storage systems manufactured locally by Ecotech.
He clarified that the arrangement was a non-exclusive framework rather than a procurement mandate and that all purchases would continue to comply with public procurement regulations based on quality, pricing and reliability.
Aliyu said the partnership would reduce import dependence, shorten project delivery timelines, strengthen local technical expertise, conserve foreign exchange and support Nigeria’s industrialisation agenda.
Managing Director of Ecotech Development Nigeria Limited, Mr John Zhao, said the company would manufacture and assemble high-efficiency solar panels, battery storage systems and hybrid inverters in Nigeria for residential, commercial and industrial applications.
He said the company would also provide engineering design, installation, commissioning, system integration and long-term maintenance services.
According to Zhao, the locally manufactured products would include bifacial solar modules, integrated energy storage systems, hybrid inverters and large-scale battery storage solutions capable of powering homes, businesses, hospitals, public institutions and interconnected mini-grid projects.
The issues
Nigeria continues to rely heavily on imported solar equipment despite growing demand for renewable energy. Industry stakeholders say developing local manufacturing capacity will reduce import dependence, strengthen domestic supply chains, create skilled jobs and improve energy security while supporting wider industrial growth.
What’s being said
“The success of the policy will depend not only on government interventions but also on a collective commitment to patronise locally manufactured products and services.” — Sen. John Enoh, Minister of State for Industry.
“More than 85 million Nigerians—about 40 per cent of the population—still lack reliable access to grid electricity.” — Abba Aliyu, Managing Director, REA.
What’s next
REA and Ecotech are expected to begin implementing the agreement through local manufacturing and assembly of solar panels and battery storage systems, while future transactions will be carried out under existing public procurement rules.
Bottom line
The REA-Ecotech agreement marks a significant step towards building Nigeria’s domestic renewable energy manufacturing industry while supporting electrification, job creation and the country’s broader industrialisation objectives.
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