Energy experts have called on Nigeria and other African countries to align renewable energy investments with industrialisation, local manufacturing and job creation, warning that reliance on imported technologies could prevent the continent from fully benefiting from the global energy transition.

They stressed that renewable energy development should extend beyond electricity generation to support industries, strengthen indigenous enterprises, build technical capacity and establish regional supply chains that retain more economic value within Africa.

The experts spoke at the inaugural Energy Transition Africa (ETA) 2026 Colloquium, held virtually on Thursday. Policymakers, energy practitioners and researchers examined the theme, “Transition or Transformation? What Will the New Energy Economy Mean for Africa’s Development?”

Participants argued that the success of Africa’s energy transition should be measured by its contribution to industrialisation, productive employment, affordable electricity and improved livelihoods, rather than simply by the amount of investment attracted or the number of renewable energy installations completed.

Opening the discussion, Yagouba Traoré, Head of Policy Planning and Strategy at the African Energy Commission of the African Union, urged African governments to use the continent’s abundant energy resources to develop domestic industries instead of remaining exporters of raw materials and importers of technology.

Traoré highlighted the scale of the continent’s energy challenges, noting that nearly 600 million Africans lacked access to electricity, while close to one billion depended on firewood, charcoal and kerosene for cooking.

He said Africa’s solar, wind, hydropower and geothermal resources could accelerate industrialisation if governments prioritised local manufacturing, mineral processing, technical education and domestic financing.

In her featured address, Ejiro Gray, Executive Director of Governance and Sustainability at Sahara Group, said renewable energy investments would produce meaningful economic transformation only if they strengthened local productive capacity and supported industrial development.

Citing Nigeria’s power sector, Gray pointed to Egbin Power, First Independent Power and Ikeja Electric as examples of efforts to develop local expertise, strengthen indigenous management and increase domestic procurement.

Dr Chantal Naidoo, Founder and Executive Director of Rabia Transitions, identified financing arrangements as a major obstacle to converting Africa’s energy investments into industrial development.

She argued that existing international financing structures often placed a disproportionate share of project risks on African governments, while foreign investors retained much of the commercial value generated.

Maybel Acquaye, Policy Lead for Minerals and Mining Policy at the Africa Centre for Energy Policy, also called on African governments to integrate renewable energy investments with agriculture, local supply chains and manufacturing.

Meanwhile, Nigeria’s House of Representatives has passed for second reading a bill seeking to establish a National Authority for Renewable Energy (NARE), which would coordinate renewable energy development and regulation.

The proposed authority is expected to assume key responsibilities currently distributed among existing agencies in the power sector.

The Electricity Act (Amendment) Bill, 2025, sponsored by Afam Victor Ogene, who represents Ogbaru Federal Constituency in Anambra State, secured the lawmakers’ backing on Thursday.

Ogene, Chairman of the House Committee on Renewable Energy, said the proposed legislation would transfer renewable energy functions from the Nigerian Electricity Regulatory Commission (NERC), the Rural Electrification Agency (REA) and the Rural Electrification Fund (REF) to the new authority.

The bill seeks to consolidate these responsibilities under a dedicated institution as Nigeria continues to pursue renewable energy development.

SOURCE:The Guardian