Perception Survey of Local Manufacturers in the Nigerian Renewable Energy Sector

This study assesses the performance and challenges of Nigeria’s local solar manufacturers under current renewable energy policies, highlighting barriers such as import dependence, high tariffs, and weak incentives, and recommends stronger governance, fiscal support, and private-sector leadership to boost local production, create jobs, and make solar energy more affordable for Nigerians.

Nigeria’s renewable energy ambitions are closely tied to the nation’s struggle with electricity access and its high unemployment rate. A recent perception survey conducted by the Renewable Energy Association of Nigeria (REAN) evaluates how local manufacturers in the solar sector are performing, particularly in light of local content regulations that are meant to spur job creation and productivity.

While the demand for solar energy is growing and Nigeria has set ambitious targets for renewable energy contribution by 2030, the study reveals a sector still heavily reliant on imports. Over 85% of solar components are sourced from abroad, and local panel assembly currently meets just 19% of domestic demand. This dependence has kept costs high and limited the sector's potential to create jobs and develop homegrown expertise.

Key manufacturers like Auxano Solar and Blue Camel Energy are making strides in local production and skills development, but they face significant hurdles. Challenges such as erratic power supply, high import duties, limited access to financing and foreign exchange, and weak policy implementation continue to stifle growth. Many companies also struggle to meet local content requirements due to a lack of clarity and enforcement.

Surveyed companies reported that while the local market shows signs of growth, more must be done to unlock its full potential. The government must take more deliberate actions to support local manufacturers. These include providing favourable tax regimes, reducing import tariffs for essential equipment, improving access to credit, and enforcing procurement policies that prioritise locally made solar components.

Ultimately, meaningful progress in Nigeria’s solar manufacturing space will depend on stronger political will, better policy execution, and a shift towards a private-sector-led renewable energy market. Local manufacturing, if properly supported, has the power to not only reduce energy poverty but also generate sustainable jobs and build technical capacity across the country.