Nigeria’s renewable energy sector has generated only about 76,000 jobs despite drawing more than $2 billion in cumulative investment, a figure that stands in stark contrast to the 16.2 million jobs supported by the global solar industry, the Rural Electrification Agency, REA, has disclosed.Â
Managing Director of the REA, Dr. Abba Aliyu, in a keynote address at the 2026 Oriental News Conference in Lagos, warned that the widening employment gap exposes a deep local capacity deficit that threatens the sustainability of the country’s energy transition.
Aliyu, who was represented by the Executive Director, Corporate Services, Gboyega Ayoade, argued that Nigeria cannot anchor its clean energy future on permanent import dependence, and called for a decisive pivot toward domestic manufacturing, assembly and skills development.
Energy Policy Must Double as Industrial Policy
Delivering his address on the theme “Driving Nigeria’s Decarbonisation through Strategic Promotion of Clean Energy — The REA Experience,” Aliyu insisted that energy policy in Nigeria must be treated as industrial policy, powered by local participation rather than expatriate dominance.
“As renewable energy deployment grows, we must also grow local capacity for assembly, manufacturing, installation, operation, maintenance, recycling and skills development,” he said.
“This is where the Nigeria First policy becomes important. Clean energy must become a platform for local content, job creation and industrial value capture.”
He said every major renewable programme should be interrogated beyond its electricity supply value.
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“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.
From Energy Access to Anchor Markets
According to the REA boss, the agency is repositioning its programmes to use large-scale deployment as a lever for domestic manufacturing.
“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 explained.
He identified public sector solarisation, mini-grids, agricultural energy hubs, and institutional electrification as segments capable of serving as anchor markets for domestic renewable manufacturing, rather than being treated as standalone energy access projects.
Bankability, Not Potential, the Real Constraint
Aliyu further warned that many solar projects in Nigeria stall not because of technical limitations, but because of weak bankability structures. He said capital would only flow where projects are well-prepared, risks clearly allocated, revenue streams credible, and institutions trusted.
“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,” he said.
He disclosed that the 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.
Decarbonisation Beyond Emissions
Aliyu cautioned that Nigeria’s decarbonisation strategy must not be narrowed to emissions targets alone, but should sit within a broader framework linking energy, finance, industry and investment.
“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,” he said.
“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 achieving this requires coordinated, system-wide reforms and an integrated regulatory architecture connecting energy, finance, environment, industry and investment.
“Regulation must therefore enable innovation while protecting consumers and ensuring market discipline. This is where broad regulatory reform becomes essential,” he added.
For the extractive industry, he called for clear and coordinated rules on emissions management, carbon capture, gas flaring reduction, clean energy adoption, environmental reporting and sustainable finance. For the power sector, he said regulations around mini-grids, embedded generation, net metering, wheeling, storage and distributed energy resources must continue to evolve.
Balancing Access, Growth and Emissions
The REA MD stressed that Nigeria’s transition pathway must reflect its development realities as a growing economy with 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,” he said.
“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 described decentralised renewable energy as central to striking that balance, noting that clean energy can lower emissions and production costs while improving reliability and reaching communities the conventional grid may not serve quickly.
“Clean energy is not only an environmental solution. It is an economic development strategy,” he stated.
Structured Market Emerging
Aliyu said REA’s interventions are helping shift Nigeria from fragmented electrification efforts to a more structured renewable energy market, citing key programmes such as the Nigeria Electrification Project, the Distributed Access through Renewable Energy Scale-up programme, the Energizing Education Programme, the National Public Sector Solarisation Initiative, and various mini-grid and agricultural energy projects.
These initiatives, he said, demonstrate that renewable energy can be deployed at scale through practical, private-sector-driven models.
He called for coordinated action across stakeholders: “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.”
The extractive industry, he added, must cut emissions and back cleaner development models, while the media must continue to create informed platforms for accountability and public understanding.
Aliyu commended Oriental News Nigeria for convening the conference, noting that the media plays a critical role not only in reporting events but in shaping informed national dialogue.
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