$2bn renewable energy investment yields 76,000 jobs, REA charges stakeholders on local capacity - ITREALMS Online

Nigeria’s renewable energy workforce participation remains disproportionately low, with the sector generating roughly 76,000 jobs despite attracting over $2 billion in cumulative investments, a stark contrast to the 16.2 million jobs supported globally by the solar industry, reports ITREALMS.

This disclosure was made by the Managing Director of the Rural Electrification Agency (REA), Dr. Abba Aliyu, who warned that Nigeria cannot build a sustainable energy transition on permanent import dependence.

Speaking at the 2026 Oriental News Conference in Lagos on Thursday, Aliyu, who was represented by Gboyega Ayoade, Executive Director of Corporate Services; stressed that national energy policy must simultaneously function as an industrial policy driven by local participation rather than expatriate dominance.

Emphasizing the core philosophy of the "Nigeria First" policy, Aliyu noted that clean energy must evolve beyond a basic electricity access tool to become a core platform for local content, job creation, and industrial value capture.

"As renewable energy deployment grows, we must also grow local capacity for assembly, manufacturing, installation, operation, maintenance, recycling and skills development," Aliyu stated. "Every major renewable energy programme should ask a simple question: beyond supplying electricity, what domestic capacity does this project build?"

He explained that large-scale deployment creates predictable demand, which gives confidence to local manufacturers. Manufacturing subsequently creates jobs, expanding incomes and strengthening local supply chains to reduce costs over time. Key segments such as public sector solarisation, mini-grids, agricultural energy hubs, and institutional electrification are being positioned as anchor markets for domestic renewable manufacturing.

Addressing the roadblocks facing the sector, the REA boss pointed out that many solar projects fail to advance not due to technical limitations, but because of weak bankability structures. He emphasized that capital flows exclusively to projects featuring rigorous feasibility studies, clear demand assessments, credible revenue streams, and trusted institutions.

To counter these limitations, the REA is collaborating with development partners, financial institutions, and private developers to strengthen project preparation. Through performance-based grants, minimum subsidy frameworks, blended finance, demand aggregation, and public-private partnerships, the agency aims to improve investability across the sector.

Speaking on the theme “Driving Nigeria’s Decarbonisation through Strategic Promotion of Clean Energy — The REA Experience,” Aliyu asserted that Nigeria’s transition strategy must extend far beyond narrow emissions targets into a broader economic framework connecting energy, finance, industry, and investment.

He highlighted that as a developing nation with a growing population and significant infrastructure deficits, Nigeria faces a dual mandate: expanding energy access, industrializing the economy, and reducing emissions concurrently.

"The real challenge is not simply to reduce emissions," Aliyu said. "The challenge is to expand energy access, grow the economy, industrialise, and reduce emissions at the same time."

Highlighting the impact of decentralised renewable energy solutions, he noted that clean energy is successfully lowering production costs, powering schools, hospitals, and farms, and serving communities that the conventional grid cannot immediately reach.

Reiterating that decarbonisation cannot be achieved through isolated rules, Aliyu called for an integrated regulatory architecture connecting energy, finance, the environment, industry, and investment. He added that the extractive industry must actively reduce emissions, while the government provides clear policy direction, regulators ensure market discipline, and financial institutions innovate.

In closing, Aliyu commended Oriental News Nigeria for convening the conference, acknowledging the critical role of the media in shaping informed national dialogue and maintaining public accountability.

Chuks Egbune/Editor

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