The Rural Electrification Agency and Ecotech Development Nigeria Limited have signed a landmark Joint Development Agreement expected to reshape the country’s renewable energy landscape by strengthening local solar manufacturing, deepening technology transfer and accelerating industrialization.
The agreement establishes a framework for the annual offtake of up to 200 megawatts of locally manufactured solar photovoltaic modules and 200 megawatt hours of battery energy storage products, marking one of the country’s boldest moves yet to build a domestic renewable energy value chain. The partnership is designed to reduce Nigeria’s dependence on imported renewable energy equipment while creating jobs, retaining foreign exchange, expanding local technical capacity and supporting the federal government’s clean energy and industrial goals.
Speaking at the signing ceremony in Abuja, Minister of State for Industry, John Enoh, described the agreement as a major milestone reflecting the kind of strategic collaboration required to build industrial capacity while expanding access to sustainable energy infrastructure. He said the initiative comes as implementation of Nigeria’s industrial policy gathers momentum, with manufacturing, innovation and local value addition remaining central to economic growth, job creation and national competitiveness, and that the agreement aligns squarely with the Nigeria First Policy, which places Nigerian industries, businesses and workers at the center of national economic development.
Enoh said the success of the policy depends not only on government intervention but on a collective commitment to patronize locally manufactured products and services, noting that every Nigerian made product strengthens domestic industry, supports jobs, reinforces supply chains and keeps greater economic value within the country. He added that the federal government intends to increasingly deploy public procurement as a catalyst for industrial development by creating sustainable demand for locally manufactured goods and infrastructure. “No country has successfully industrialized without deliberately leveraging its domestic market to support local production,” he said, stressing that government alone cannot industrialize the economy, just as private investors cannot thrive without an enabling policy environment, and that partnerships such as this one would attract investment, reduce project risk, encourage innovation and speed the delivery of critical infrastructure.
The minister pointed to the declining global cost of solar technology, saying Nigeria now has a unique opportunity to accelerate renewable energy deployment while positioning itself as a competitive manufacturing hub for solar panels, batteries, inverters and other clean energy technologies, arguing that building domestic manufacturing capacity would strengthen energy security, create quality jobs, facilitate technology transfer and integrate Nigeria more competitively into emerging global value chains.
Managing Director and Chief Executive of the Rural Electrification Agency, Abba Aliyu, described the agreement as a watershed moment for Nigeria’s renewable energy sector, noting it represents the first commitment by a Tier One Chinese renewable energy company to establish manufacturing and assembly operations in the country. He said the initiative comes against the backdrop of Nigeria’s huge electricity access gap, revealing that more than 85 million Nigerians, about 40 per cent of the population, still lack reliable access to grid electricity. While acknowledging progress made under programmes such as the Rural Electrification Fund, the Nigerian Electrification Project and the Distributed Access through Renewable Energy Scale Up initiative, he said the country still faces a significant electrification challenge, lamenting that nearly every solar installation in Nigeria depends on imported components, meaning the country has for years financed industrial growth elsewhere despite its own enormous renewable energy potential. Every imported solar panel, battery and inverter, he argued, represents a lost opportunity for Nigerian factories, technicians and manufacturers.
Under the agreement, Aliyu explained, the agency, through its renewable asset management subsidiary, will facilitate the annual offtake of up to 200 megawatts of solar modules and 200 megawatt hours of battery storage systems to be manufactured and assembled locally by Ecotech. He clarified that the arrangement is a non exclusive framework rather than a procurement mandate, with all transactions continuing to comply with existing public procurement regulations and being evaluated on quality, price and reliability. He expressed confidence that the initiative would significantly reduce import dependence, shorten project delivery timelines, strengthen local technical expertise, conserve foreign exchange and support President Bola Tinubu’s vision of building a trillion dollar economy through private sector led industrialization.
Managing Director of Ecotech Development Nigeria Limited, John Zhao, said the company would locally manufacture and assemble high efficiency solar panels, battery storage systems and hybrid inverters for residential, commercial and industrial use, while also providing engineering design, system integration, installation, commissioning and long term maintenance services. He unveiled a broad portfolio of renewable energy solutions underpinning the partnership, including high efficiency bifacial solar modules ranging from 220 watts to 750 watts, with conversion efficiencies of up to 23.3 per cent, suitable for utility scale power projects, commercial installations, grid connected systems and interconnected mini grids. For homes and small businesses, Zhao said Ecotech would supply integrated energy storage systems with capacities of about 10 kilowatt hours and 14 kilowatt hours, alongside single phase and three phase hybrid inverters ranging from 5 kilowatts to 12 kilowatts. The company’s commercial and industrial portfolio includes 200 kilowatt hour battery storage systems as well as larger containerized energy storage solutions ranging from about 1.075 megawatt hours to 2.15 megawatt hours, which he said are designed to be reliable, scalable and adaptable to varying operating conditions across Nigeria, capable of powering hospitals, businesses, public institutions and interconnected mini grid projects.