REA flags local capacity gap as Nigeria’s $2b renewable energy investment yields only 76,000 jobs

Dr. Abba Aliyu, the Managing Director of the Rural Electrification Agency (REA), has disclosed that Nigeria’s renewable energy workforce participation remains significantly low, with the sector generating only about 70,000 jobs despite attracting over $2 billion in cumulative investment, compared to the 16.2 million jobs supported by the global solar industry.

The gap, according to the REA boss, underscores the urgent need for a deliberate shift toward local capacity development.

Aliyu warned that Nigeria cannot build a sustainable energy transition on permanent import dependence.

The REA MD made this known in his keynote address at the 2026 Oriental News Conference held in Lagos on Thursday.  

Represented by Gboyega Ayoade, Executive Director, Corporate Services, he stressed that energy policy must double as industrial policy-driven by local participation rather than expatriate dominance.

He said: “As renewable energy deployment grows, we must also grow local capacity for assembly, manufacturing, installation, operation, maintenance, recycling, and skills development.

“This is where the Nigeria First policy becomes important. 

“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 further noted that REA’s programmes are being repositioned to align with this approach, leveraging clean energy as a strategic industrial policy tool.

He said: “REA’s programmes are increasingly being positioned within this logic. 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.”

Aliyu revealed that key segments, including public sector solarisation, mini-grids, agricultural energy hubs, and institutional electrification, can serve as anchor markets for domestic renewable manufacturing rather than merely energy access projects.

The REA boss further emphasised that despite strong potential, many solar projects fail to advance due to weak bankability structures rather than technical limitations.

He explained that capital will only flow where projects are well-prepared, risks clearly allocated, revenue streams credible, and institutions trusted.

𝕤𝕖𝕖 𝕞𝕠𝕣𝕖/𝕨𝕒𝕥𝕔𝕙 𝕥𝕙𝕖 𝕧𝕚𝕕𝕖𝕠 𝕙𝕖𝕣𝕖