Nigeria builds Africa’s largest panel manufacturing plant

From the newsletter

Tranos, a Nigerian-based manufacturing firm, has commenced construction of an 800 MW solar PV panel factory in Ogun State. Once complete, it will increase Nigeria’s total solar manufacturing capacity to approximately 1,100 MW. This positions the country to locally meet more than half the demand for their annual solar panel imports.

• Nigeria’s initial plan to ban solar imports has spurred local manufacturing interest. Since then, companies like LPV Technologies and NASENI have emerged, although Tranos’ facility is the first of its kind at this scale.

• The country now follows South Africa in localising panel production. Last week, Juwi partnered with JA Solar to source panels from JA’s Cape Town plant. Nigeria could replicate this model to strengthen regional supply chains.

More details

• Tranos’ new campus will consolidate its Lagos operations and expand production capabilities with one line initially generating 400 MW annually, scaling to 800 MW by 2027. The facility will also include cable systems, Research & Development, and advanced manufacturing for power distribution panels and other components. The project expects to increase the workforce from 160 to 400 within two years, boosting local employment and skills development.

• Nigeria spends around $150 million on solar imports. In the last five months, the country imported around 818 MW of panels. This significant expenditure underscores the economic rationale for local production. 

• The country has been steadily increasing its panel import capacity over the past couple of years. It has grown 21-fold, from 64 MW in 2017 to 1,328 MW in 2024, the highest so far. As the country’s population increases, as well as energy demand, this import capacity will likely rise, making domestic manufacturing even more critical.

• Africa's solar manufacturing is nascent but ambitious. The continent's  total installed solar capacity was around 19,200 MW by end-2024, with targets to accelerate significantly, aiming for 23,000 MW of new capacity by 2028 and potentially 47,000 MW under optimistic scenarios. Achieving this requires massive investment in local manufacturing across the value chain.

• Other African nations are also advancing solar manufacturing, including South Africa, with a solar manufacturing capacity of around 1,100 MW, with local players like ARTsolar and JA Solar. Morocco's Almaden has expanded PV production to 1,000 MW. The continent is also seeing a couple of solar cell manufacturing facilities, like Ethiopia's 4,000 MW TOYO Solar facility. Egypt's Sunrev plant will manufacture both solar cells and solar panels. Overall, this shows a trend across Africa towards building integrated renewable energy supply chains.

• The primary bottleneck for African manufacturing is finance. Capital costs for solar projects in Africa are often 3 to 7 times higher than elsewhere, and despite increased investment, Africa still receives only 3% of global energy investment, far from the $200 billion needed annually. Limited private sector participation, lack of low-cost financing, and currency risks exacerbate this.

Our take

• Nigeria might be Africa’s panel manufacturing hub. Tranos's new plant signals an aggressive move to become Africa's solar manufacturing powerhouse, aiming to slash its hefty annual import bill and create significant local jobs.

• Africa’s solar revolution won’t wait for the hesitant. Countries that fail to invest in local manufacturing risk being sidelined as Nigeria, South Africa, and others build integrated supply chains and capture the economic benefits of the clean energy transition.

• The real test now is political will. Without urgent, consistent policies and financial incentives that protect and empower local manufacturers, this moment of opportunity will slip away, leaving Africa dependent on foreign panels and missing out on a green industrial revolution. The time to act is now.