Nigeria’s renewable energy sector has attracted more than $2 billion in investment but created only about 76,000 jobs, highlighting a significant local capacity gap, the Rural Electrification Agency (REA) has said.
Speaking at the 2026 Oriental News Conference in Lagos on Thursday, REA Managing Director, Dr. Abba Aliyu, represented by the agency’s Executive Director of Corporate Services, Gboyega Ayoade, said Nigeria must reduce its dependence on imported renewable energy solutions and prioritise local capacity development to build a sustainable clean energy sector.
Aliyu noted that while the global solar industry supports about 16.2 million jobs, Nigeria’s renewable energy sector has generated only around 76,000 jobs despite attracting substantial investment.
He stressed that the country’s energy policy must also serve as an industrial policy by promoting local manufacturing, assembly, installation, operation, maintenance, recycling and skills development.
According to him, every major renewable energy project should not only provide electricity but also create jobs for Nigerian engineers and technicians, support local installers, strengthen domestic manufacturing, deepen supply chains and encourage technology transfer.
Aliyu said REA is repositioning its programmes to make clean energy a driver of industrial growth, explaining that large-scale deployment creates predictable demand, boosts manufacturing, generates employment and lowers costs through stronger local supply chains.
He identified public sector solarisation, mini-grids, agricultural energy hubs and institutional electrification as strategic anchor markets that can stimulate domestic renewable energy manufacturing rather than serving only as energy access initiatives.
The REA boss also attributed the slow progress of many renewable energy projects to weak bankability rather than technical limitations.
He explained that investors require well-prepared projects with credible revenue models, detailed feasibility studies, effective risk allocation, sound environmental and social safeguards, strong community engagement and robust financing structures before committing capital.
To address these challenges, Aliyu said the agency is working with development partners, financial institutions and private developers to strengthen project preparation through performance-based grants, blended finance, public-private partnerships, green finance platforms and other financing mechanisms.
On Nigeria’s decarbonisation agenda, Aliyu said the country’s clean energy transition must extend beyond reducing emissions to include industrial development, energy security, financing, technology and inclusive economic growth.
He noted that Nigeria’s growing population, rising electricity demand and infrastructure deficits require a balanced approach that expands energy access, drives industrialization and reduces emissions simultaneously.
Aliyu described decentralised renewable energy as a key economic development tool capable of powering hospitals, schools, farms, markets and businesses while creating opportunities in solar manufacturing, energy storage, metering, digital monitoring, installation and maintenance.
He added that REA’s flagship programmes—including the Nigeria Electrification Project, Distributed Access through Renewable Energy Scale-up Programme, Energizing Education Programme, National Public Sector Solarisation Initiative, and several mini-grid and agricultural energy projects—are helping to transform Nigeria’s renewable energy sector through practical, private sector-driven models.
He emphasised that achieving Nigeria’s decarbonisation goals requires coordinated efforts by government, regulators, investors, financial institutions, development partners, the extractive industry and the media.
Aliyu also commended Oriental News Nigeria for organising the conference, describing the media as a critical partner in promoting informed public discourse, accountability and awareness on Nigeria’s clean energy transition.
