Despite attracting more than $2 billion in renewable energy investments, Nigeria is yet to reap the full employment benefits of its clean energy transition.
Managing Director of the Rural Electrification Agency (REA), Mr. Abba Aliyu, raised the alarm at 2026 Oriental News Conference in Lagos at the weekend with the theme:”Driving Nigeria’s Decarbonisation through Strategic Promotion of Clean Energy-The REA Experience”.
He warned that unless the country deliberately develops local manufacturing capacity and technical skills, the renewable energy boom could continue to generate economic value abroad rather than at home.
Aliyu said Nigeria’s clean energy drive must move beyond expanding electricity access to becoming a catalyst for industrialisation, employment generation and local value creation.
He lamented that, the sector has only created about 76,000 jobs which, he said, is just a fraction of the 16.2 million jobs supported by the global solar industry.
Represented by the Executive Director, Corporate Services, Mr. Gboyega Ayoade, the REA boss argued that energy policy should simultaneously serve as industrial policy by prioritising local participation across the renewable energy value chain.
“As renewable energy deployment grows, we must also grow local capacity for assembly, manufacturing, installation, operation, maintenance, recycling and skills development,” he said.
According to him, the Federal Government’s Nigeria First policy presents an opportunity to ensure the country’s energy transition delivers jobs and industrial growth rather than deepening dependence on imported technologies and expatriate expertise.
“Clean energy must become a platform for local content, job creation and industrial value capture.
“Every major renewable energy programme should ask a simple question: beyond supplying electricity, what domestic capacity does this project build?
“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,” Aliyu said.
He explained that REA is increasingly designing its programmes to stimulate domestic manufacturing by creating predictable market demand that gives investors confidence to establish local production facilities.
According to him, large-scale deployment of renewable energy systems creates sustainable demand, encourages manufacturing, generates employment, raises incomes and ultimately lowers costs through stronger local supply chains.
Aliyu identified public sector solarisation projects, mini-grids, agricultural energy hubs and institutional electrification initiatives as potential anchor markets capable of supporting domestic renewable energy manufacturing rather than serving solely as electricity access programmes.
Beyond local manufacturing, the REA boss identified weak project preparation and financing structures as another major obstacle slowing investment in the sector.
He said many renewable energy projects fail to secure financing not because of technological limitations but because they lack the bankability required by investors.
“The core constraint is not potential but bankability,” he said.
He noted that investors require projects with robust feasibility studies, credible demand assessments, reliable payment structures, sound technical preparation, strong environmental and social safeguards, effective community engagement and appropriate risk mitigation mechanisms before committing capital.
To address these challenges, Aliyu said the agency is working with development partners, financial institutions and private developers to strengthen project preparation and improve financing frameworks.
According to him, REA is deploying performance-based grants, minimum subsidy frameworks, blended finance, demand aggregation, public-private partnerships and green finance platforms to make renewable energy projects more attractive to investors.
Aliyu argued that Nigeria’s decarbonisation agenda must extend beyond emissions reduction to encompass industrial competitiveness, energy security, investment attraction and inclusive economic growth.
“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.
“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.
He maintained that achieving those objectives would require coordinated reforms across the energy, finance, environment, industry and investment sectors, rather than isolated regulatory interventions.
Aliyu stressed that regulations governing emissions management, carbon capture, gas flaring reduction, mini-grids, embedded generation, net metering, energy storage and distributed energy resources must continue to evolve to support both investment and innovation.
He also cautioned against adopting a one size fits all approach to decarbonisation, noting that Nigeria’s energy transition must reflect the country’s development realities.
“We are a developing country with a growing population, expanding energy demand and 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.
“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 said.
Aliyu described decentralised renewable energy systems as central to achieving those twin objectives, saying they have demonstrated the ability to lower production costs, improve electricity reliability, support healthcare and education facilities, power agricultural activities and stimulate new industries around solar manufacturing, battery storage, metering, digital monitoring, installation and maintenance.
He said programmes such as the Nigeria Electrification Project, the Distributed Access through Renewable Energy Scale-up Programme, the Energising Education Programme, the National Public Sector Solarisation Initiative, as well as several mini-grid and agricultural energy projects, are helping transform Nigeria’s renewable energy market through private sector-led deployment models.
He added that government must provide clear policy direction while regulators create investor confidence, financial institutions develop innovative financing products, development partners de-risk strategic investments and the private sector commits long-term capital.
He also called on the extractive industry to accelerate emissions reduction and embrace cleaner development models, while urging the media to sustain informed public discourse on the country’s energy transition.
Aliyu commended Oriental News Nigeria for organising the conference, saying the media remains an indispensable partner in shaping public understanding and driving accountability in Nigeria’s transition to a cleaner and more inclusive energy future.
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<small>Source: The Sun Nigeria — read the original story there.</small>