Nigeria Aims to Become Solar Powerhouse, Targets 30% Fossil Fuel Cut by 2030

Among the countries in Africa, Nigeria wants to reduce its dependency on fossil fuels by 30% by 2030 and increase its domestic manufacturing capabilities.

Nigeria is rapidly growing its renewable energy through local manufacturing and innovation. Companies like Salpha Energy are helping the country by assembling solar products, enabling the country to shift towards sustainable energy. Nigeria aims to reduce its dependency on fossil fuels and become a leader as Africa transitions towards clean energy.

Salpha Energy is a large-scale solar assembly plant in Cross River, Nigeria. The company is recruiting young technicians who test and package solar-powered batteries, fans, and lamps. Its factory is located near Calabar, and they supply these products to customers across the country.  

Sandra Chukwudozie is the founder of Salpha Energy. He stated that he finds her team in Nigeria shares the same sense of pride, which is seen in international manufacturing hubs. They started their operations in 2017. Since then, they have delivered solar power systems to over two million homes and companies in Nigeria, and they aim to assemble up to 300,000 units annually.

The contribution made by Salpha Energy shows Nigerians’ growing leadership in renewable energy. The company has showcased its homegrown solutions, which aim to create sustainable energy, at global events such as the United Nations COP30 climate summit.

Carlos Lopes, the COP30 presidency’s special envoy for Africa, stated that the country is shifting from being seen as a ‘terrain of aid’ to becoming a source of solutions, particularly in renewable energy.

Among the countries in Africa, Nigeria wants to reduce its dependency on fossil fuels by 30% by 2030 and increase its domestic manufacturing capabilities.

Currently, their national grid is mostly powered by gas, which accounts for 75%, and 20% by hydropower, while other renewables, such as solar, wind, and biomass, contribute less than 2%.

In March, Nigeria signed a $200 million agreement with the World Bank and its partners to develop solar grids in rural areas, aiming to meet its target for renewable clean energy.

Salpha Energy has secured 2 billion Naira ($1.4 million) investment from All On, a Nigerian nonprofit energy investor founded by Shell, to increase the country’s manufacturing capacity. Although local production is growing, these manufacturers still face competition from Asian companies, particularly Chinese companies that dominate the global solar supply chain by offering cheaper, mass-produced panels.

Although imports from China have helped accelerate Africa to adopt renewable energy, African leaders argue that the continent has over 30% of the global critical minerals. It should focus on building its own clean energy technology rather than importing. Between 2024 and 2025, Nigeria imported about 1,721 MW of Chinese solar panels. It was the second-largest importer in Africa, after South Africa, according to energy think tank Ember.

Analysts suggest that funds used to import panels, turbines, and software from other countries can be used to build design labs and research centers in Africa, where local engineers can adapt technology. Countries, such as the Democratic Republic of the Congo, which holds 70% of the world’s cobalt reserves, should not be importing but should be encouraged to process minerals and manufacture clean energy products locally. Additionally, these local processes will create jobs and boost local economies.

Many other African countries, such as Morocco, South Africa, and Egypt, are also working to expand their solar assembly plants and manufacturing facilities. Egypt is developing three manufacturing plants with the help of Asian clean tech companies, including EliTe Solar, a Singaporean manufacturer, which will help to build a three-gigawatt facility.

In October, Nigeria signed a deal with LONGi, a Chinese manufacturer, to build a solar panel production factory with a capacity of 500 to 1,000 megawatts.