Nigeria’s Federal Government, through the Rural Electrification Agency (REA), has entered into a strategic alliance with Sun King, a leading global off-grid solar firm, aimed at enhancing domestic manufacturing, broadening access to renewable energy, and potentially reducing Nigeria’s solar import costs by as much as $150 million over the next five years.
The Memorandum of Understanding, signed at the Nigeria Renewable Energy Innovation Forum in Abuja, was signed in the presence of Vice President Kashim Shettima and Sun King’s co-founder and CEO, Patrick Walsh.
“With the right enabling support from REA and wider government, Sun King estimates that its planned local manufacturing facilities could substitute imports worth $150 million over the next five years. In parallel, the partnership will promote structured dialogue between the public and private sectors on the conditions necessary to build a thriving local manufacturing ecosystem,” an official statement read.
Kashim Shettima stated that the Tinubu administration is committed to drawing greater private investment into the renewable energy sector by enhancing incentives and eliminating regulatory hurdles.
The partnership will concentrate on three main areas: boosting local manufacturing and value creation, fostering data-informed cooperation, and joint advocacy for off-grid solar as a vital part of Nigeria’s energy transition.
As part of the local production initiative, Sun King and the Rural Electrification Agency will collaborate to assemble solar panels, home energy systems, and energy-efficient appliances. This effort aligns with the Federal Government’s Nigeria First policy, which seeks to generate employment and lessen reliance on imported energy goods.
The second part of the partnership will strengthen data sharing and technical collaboration between the two organizations. By combining market insights, consumer information, and performance data, REA and Sun King seek to enhance the effectiveness and design of national initiatives like the Nigeria Electrification Project and the Distributed Access through Renewable Energy Scale-up program.
The third focus area of the partnership emphasizes raising public awareness and advocating for policies that elevate solar systems as a key component of Nigeria’s energy strategy. REA and Sun King will work together to promote favorable financing policies that attract private investment and showcase the positive impact of solar solutions in rural and peri-urban areas.
Sun King, which currently distributes over 330,000 solar kits each month across Africa, has rapidly expanded its Nigerian operations from 3,000 units per month in 2020 to approximately 75,000 monthly units today. The company aims to triple its sales in Nigeria in the coming years as the demand for reliable and affordable power grows.
Sun King’s co-founder, Patrick Walsh, emphasized that the agreement represents a unified vision between the government and the private sector.
According to the World Bank, around 85 million Nigerians currently lack access to electricity. Experts suggest that expanding off-grid solar and hybrid systems, combined with local manufacturing, could significantly enhance energy access while cutting foreign exchange losses from importing equipment.
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