Nigeria’s renewable energy sector has attracted more than $2 billion in cumulative investment, generating approximately 76,000 jobs, but industry leaders say the country must accelerate local manufacturing and workforce development to unlock the sector’s full economic potential.

The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, disclosed that while investment in Nigeria’s renewable energy industry continues to grow, workforce participation remains far below global standards.

He noted that the global solar industry currently supports about 16.2 million jobs, highlighting the significant gap Nigeria must close.

Aliyu made the remarks during his keynote address at the 2026 Oriental News Conference held in Lagos on Thursday, July 23. He was represented by Gboyega Ayoade, Executive Director, Corporate Services.

According to him, Nigeria’s clean energy transition should not rely indefinitely on imported technologies and foreign expertise, stressing that energy policy must also function as an industrial development strategy centred on domestic participation.

He said, “As renewable energy deployment grows, we must also grow local capacity for assembly, manufacturing, installation, operation, maintenance, recycling and skills development.

“This is where the Nigeria First policy becomes important. Clean energy must become a platform for local content, job creation and industrial value capture.

“Every major renewable energy programme should ask a simple question: beyond supplying electricity, what domestic capacity does this project build?

“Does it create jobs for Nigerian engineers and technicians? Does it use local installers? Does it create demand for local assembly? Does it support Nigerian firms? Does it strengthen the supply chain? Does it improve skills and technology transfer?

“This is how clean energy becomes an industrial policy tool,” he stated.

Aliyu explained that the REA is already repositioning its programmes to align with this strategy by using renewable energy deployment to stimulate domestic manufacturing and industrial expansion.

“REA’s programmes are increasingly being positioned within this logic. Large-scale deployment creates predictable demand. Predictable demand gives confidence to manufacturers. Manufacturing creates jobs. Jobs expand incomes. And stronger local supply chains reduce costs over time.”

He identified public sector solarisation, mini-grids, agricultural energy hubs and institutional electrification as strategic markets capable of supporting local renewable energy manufacturing instead of serving only as electricity access projects.

Bankability remains a major hurdle

Beyond technology, Aliyu pointed to financing structures as one of the biggest obstacles preventing renewable energy projects from reaching implementation.

He stated that investors require projects with solid preparation, transparent risk allocation, reliable revenue models and credible institutions before committing capital.

According to him, the sector’s greatest challenge is project bankability rather than technical capability.

“Projects often require stronger feasibility studies, clearer demand assessment, improved payment structures, robust technical preparation, environmental and social safeguards, deeper community engagement, and effective risk mitigation instruments.

“To address this, REA is working with development partners, financial institutions, and private developers to strengthen project preparation and financing frameworks.

“Through performance-based grants, minimum subsidy frameworks, blended finance, demand aggregation, public-private partnerships, and green finance platforms, the agency aims to improve investability across the sector,” he said.

Decarbonisation must support economic growth

Speaking on Driving Nigeria’s Decarbonisation through Strategic Promotion of Clean Energy — The REA Experience, Aliyu argued that Nigeria’s decarbonisation agenda should extend beyond emissions reduction to encompass industrial growth, financing, technology and economic competitiveness.

He said:

“For Nigeria, decarbonisation cannot be reduced to a narrow conversation about emissions alone.

“It must be a conversation about competitiveness, industrial renewal, energy security, climate resilience, financing, technology, and inclusive growth.

“It must recognise the structure of our economy, the role of oil and gas, the urgency of expanding electricity access, and the need to position clean energy as a catalyst for national development,” he said.

He added that achieving those objectives would require coordinated reforms across multiple sectors.

“Decarbonisation cannot be achieved through isolated rules. It requires an integrated regulatory architecture that connects energy, finance, environment, industry and investment.”

He further stated:

“Regulation must therefore enable innovation while protecting consumers and ensuring market discipline. This is where broad regulatory reform becomes essential.”

“For the extractive industry, regulations around emissions management, carbon capture, gas flaring reduction, clean energy adoption, environmental reporting and sustainable finance must be clear and coordinated.

For the power sector, regulations around mini-grids, embedded generation, net metering, wheeling, storage and distributed energy resources must continue to evolve.”

Energy access and emissions reduction must progress together

Aliyu maintained that Nigeria’s development realities require an approach that simultaneously expands electricity access, supports industrialisation and reduces emissions.

He said: “We are a developing country with a growing population, expanding energy demand and significant infrastructure deficits.

“Millions of Nigerians still require access to reliable electricity. Businesses still face high energy costs. Public institutions still depend heavily on diesel. Industrial clusters still struggle with unreliable supply. Rural communities still need power for productive use.

“Therefore, the challenge before us is not simply to reduce emissions.

“The real challenge is to expand energy access, grow the economy, industrialise, and reduce emissions at the same time,” he said.

He noted that decentralised renewable energy systems remain central to delivering that balance.

“For many years, the energy transition was sometimes presented as a trade-off between development and climate responsibility.

“But the evidence from Nigeria’s renewable energy access experience shows the opposite.

“Clean energy can reduce emissions while improving livelihoods. It can lower the cost of production while improving reliability.

“It can serve communities that the conventional grid may not reach quickly. It can power hospitals, schools, markets and farms.

“It can also create new industries around solar, storage, metering, digital monitoring, installation, maintenance and local manufacturing.

“In this sense, clean energy is not only an environmental solution. It is an economic development strategy,” he stated.

Aliyu also highlighted several REA programmes driving the country’s renewable energy transition, including the Nigeria Electrification Project, the Distributed Access through Renewable Energy Scale-up programme, the Energizing Education Programme, the National Public Sector Solarisation Initiative, alongside various mini-grid and agricultural energy projects.

According to him, these initiatives demonstrate that renewable energy can be deployed nationwide using scalable, private-sector-led delivery models.

Reiterating the importance of coordinated action, the REA Managing Director said:

“Government must provide clear policy direction, while the regulators must create confidence, the private sector must invest, financial institutions must innovate and development partners must de-risk priority markets,” Aliyu noted.

He further stated that the extractive industry must continue reducing emissions while supporting cleaner development pathways and called on the media to sustain informed public engagement.

Aliyu concluded by commending Oriental News Nigeria for organising the conference, describing the media as a vital institution for promoting accountability and shaping informed national discourse.

Source: Realnews Magazine