Solarge plans a 1 GW solar panel factory in Nigeria

From the newsletter

Dutch manufacturer Solarge BV has partnered with the Nigerian government to set up a solar panel manufacturing plant with an annual production capacity of 1 GW. Together with other projects under development, this will raise Nigeria’s total production capacity to at least 3 GW, enough to offset the country’s annual solar imports from China.

• Solar imports from China to African nations surged 60% in the 12 months to June 2025. Nigeria ranked second after South Africa, underscoring Africa’s reliance on external suppliers.

• Some major manufacturing projects underway in Nigeria include Tranos’ 800-MW solar panel factory, a 600-MW solar panel plant in Kano State and the 1,200-MW Oando Clean Energy solar plant, Africa’s largest.

More details

• The agreement was formalised at InfraCorp’s Abuja office, with a shareholding split between Solarge BV (49%), InfraCorp (26%), and the Rural Electrification Agency (REA) (25%).

• Despite increased demand for solar Across Africa, the growth is relatively modest given the continent’s immense solar potential. The continent has over 60% of the world’s best solar resources, but solar generation still accounts for only about 3% of its electricity mix.

• However, the once nascent manufacturing space in African renewable energy is fast changing. African countries are moving to localise production. Nigeria joins Egypt, Ethiopia, Morocco, Kenya, and South Africa, all of which are setting up manufacturing plants of different capacities this year.

• According to the Renewable Rising project database, Egypt leads Africa in local renewable manufacturing with over 4 GW of solar panel manufacturing projects in the pipeline, followed closely by Ethiopia in second place. Nigeria ranks third, reflecting its growing but still emerging manufacturing capabilities.

• Nigeria’s Rural Electrification Agency will buy a minimum of 200 MW of locally produced solar panels each year from Solarge BV over five years to back its electrification projects. This steady procurement commitment helps de-risk initial demand and is critical for attracting investment and reaching economies of scale in the country’s solar manufacturing.

• Partnerships are also proving beneficial for the country. These partnerships with international firms, particularly Chinese companies, for example, with China Great Wall Industry Corporation for a solar cell production plant, are designed to facilitate technology transfer and build local expertise in the renewable energy sector. The Solarge Nigeria project, for instance, aims for 50% local content within its first three years.

• However, while the country is taking significant strides,  the manufacturing sector in Africa still faces persistent challenges. The most pressing is foreign exchange volatility, which restricts access to dollars needed for importing raw materials and equipment, raising production costs and causing inflation. Other challenges include unreliable power supply leading to high energy costs, limited access to affordable financing due to high interest rates, poor infrastructure affecting logistics, declining foreign investment, and regulatory uncertainty.

Our take

• Nigeria is taking a strong step in the right direction. Its efforts to set up local manufacturing plants will progressively localise production and shield the country from unstable global markets that could leave it vulnerable to supply disruptions and price shocks.

• The key to sustainable success lies in consistent and effective policy implementation that supports local industry, incentivises investment, and balances import controls with developmental realities. 

• Overall, Africa’s manufacturing sector is rapidly evolving. Investors are establishing bases across the continent and engaging in fruitful collaborations with local entities to ensure technology transfer, build expertise, and scale production capacity. This growing industrial ecosystem will be critical in achieving renewable energy targets.