Nigeria develops solar panel production despite imports from China — Climate Home News
Several companies in Nigeria are developing local solar panel production, while the country’s government is seeking to reduce dependence on imported equipment, mainly from China. In particular, the LPV Technologies plant near Lagos, where production began last year, manufactures panels for buyers in Nigeria and neighbouring West African countries, Climate Home News reports.
According to Nigeria’s Rural Electrification Agency, about four in ten people in the country, more than 85 million people, do not have reliable access to centralised electricity supply. Over the past two years, Nigeria’s national power grid has suffered around 22 failures due to electricity transmission constraints, gas shortages and ageing infrastructure.
Demand for off-grid energy
Solar systems are increasingly being installed in households and businesses affected by grid disruptions. According to BloombergNEF estimates, Nigeria’s total installed solar capacity has reached about 6 GW, mainly thanks to small-scale installations. In the Agege area of Lagos, 100 LPV panels were installed on the roof of a new veterinary vaccine storage complex. Together with batteries, they are intended to provide round-the-clock power to offices, laboratories and refrigerated facilities.
Nigerian President Bola Tinubu told Chinese investors back in 2024 that the country intended to manufacture solar technologies and batteries for the African market. The authorities also announced renewable energy industrial park projects in Nasarawa State and a solar module assembly plant in Enugu. However, commercial production at these facilities has not yet begun.
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Competition with Chinese manufacturers
Nigeria’s solar market remains heavily dependent on foreign equipment. Last year, the country imported about 2.9 million panels worth more than 400 billion naira, or $295 million; more than 70% of supplies came from China. This made Nigeria the second-largest African importer of Chinese panels after South Africa.
According to LPV Technologies operations manager Emmanuel Agboli, the plant produces about 180,000 panels per year, but this is insufficient to meet domestic demand. The company imports up to 17 components, including solar cells, which increases costs. China controls more than 80% of global manufacturing capacity in the solar industry, the International Energy Agency notes. The retail price of an imported 550 W panel is about 150,000 naira, or $110 — the same amount LPV charges wholesale buyers.
Industry representatives also cited instability in government policy and the exchange rate as obstacles for investors. A proposal last year to restrict solar panel imports in support of local manufacturers was withdrawn about a month after it was announced.
