By Segun Adeyanju
Chinese solar equipment manufacturers are courting Nigerian partners to establish local factories as rising import costs and foreign exchange pressures constrain growth in Africa’s expanding renewable energy market.
The move was highlighted at the Powerlec International Solar, Storage, Renewables, EV, Power and Electrical Exhibition in Lagos, where Chinese firms pitched investment partnerships alongside product showcases—signaling a shift toward in-country production.
Nigeria remains one of Africa’s fastest-growing solar markets, with about 803 megawatts of capacity installed in 2025, according to industry data. However, stakeholders say high shipping costs, import duties, port charges, and currency-related expenses are significantly increasing the landed cost of solar equipment.
Industry operators note that freight and logistics expenses alone can substantially inflate prices, with full solar systems retailing between N2.2 million and N2.5 million after accounting for import-related costs.
Analysts say the push for local manufacturing is also driven by strong domestic demand, as households and businesses increasingly adopt solar solutions to offset unreliable grid power and rising fuel costs.
However, the sector remains heavily dependent on imports, particularly from China, leaving prices vulnerable to exchange rate fluctuations.
While interest in local production is growing, challenges such as high financing costs and policy uncertainties could determine whether foreign manufacturers commit to building factories in Nigeria.
