Nigeria is taking a major step toward clean energy industrialisation with a new strategic partnership between the Federal Government, through the Rural Electrification Agency (REA), and global solar company Sun King. The agreement is designed to boost local manufacturing, expand renewable energy access, and reduce the country’s reliance on imported solar products—potentially saving up to $150 million in imports over the next five years.
The Memorandum of Understanding was signed during the Nigeria Renewable Energy Innovation Forum in Abuja and witnessed by the Vice President, alongside Sun King’s co-founder and Chief Executive Officer. It signals a deepening collaboration between public institutions and private investors to build a domestic clean energy economy.
According to the government, the partnership aligns with efforts to industrialise Nigeria’s renewable energy sector by enhancing incentives, easing regulatory bottlenecks, and attracting large-scale private capital. Authorities believe a thriving local manufacturing ecosystem in solar components will generate jobs, reduce pressure on foreign exchange, and make power solutions more affordable for households and small businesses.
The partnership is structured around three key areas, beginning with local manufacturing. Sun King and REA plan to assemble solar panels, home energy systems, and appliances such as freezers and televisions within Nigeria. Under the government’s Nigeria First policy, this initiative aims to shift value creation from imports to domestic production, with the potential to replace $150 million worth of imports and generate thousands of jobs across manufacturing, logistics, retail, and after-sales services.
Industry analysts see significant benefits for small businesses and informal traders, who increasingly rely on solar products to power operations amid grid instability. Locally produced systems could reduce costs, shorten delivery times, and allow MSMEs to access tailored energy solutions built for local conditions.
The second pillar of the collaboration focuses on data sharing and technical cooperation. By combining consumer insights, market intelligence, and performance metrics, REA and Sun King intend to improve national electrification programmes, including the Nigeria Electrification Project and the Distributed Access through Renewable Energy Scale-up initiative. This data-led approach will also support Mission 300, a global effort to connect 300 million Africans to electricity by 2030, with Nigeria expected to serve as a regional leader.
The third component will drive policy advocacy and public awareness to position standalone solar systems as core to Nigeria’s energy transition. Both parties will campaign for financing policies that encourage private investment and showcase the role of solar solutions in transforming rural and peri-urban communities.
Sun King, one of Africa’s largest off-grid solar providers, has experienced rapid growth in Nigeria, increasing sales from 3,000 units per month in 2020 to approximately 75,000 units per month today. The company currently supplies more than 330,000 kits monthly across African markets and plans to triple its Nigerian sales as demand for reliable energy continues to rise.
The company’s co-founder described the agreement as the convergence of two strategic goals—advancing Africa’s Mission 300 and accelerating Nigeria’s industrialisation. Sun King has already created over 12,000 jobs in Nigeria in areas such as engineering, data analytics, sales, and customer service. The new partnership is expected to deepen its footprint through local assembly and supply chain development.
Experts say the model could influence other African nations seeking to align renewable energy growth with industrial policy, particularly in reducing foreign exchange losses on imported equipment. Nigeria, with an estimated 85 million people still without electricity access according to the World Bank, sees off-grid solar and hybrid solutions as critical to closing its energy gap.
For Nigeria’s MSMEs, artisans, and rural entrepreneurs, expanding domestic solar manufacturing could offer more accessible, durable, and affordable alternatives, building a pathway where clean energy powers not just homes, but economic growth.
