Finance minister Edun said the coexistence of abundant sunlight and limited energy access in Sub-Saharan Africa presents a complex and challenging paradox.

Nigeria’s federal government, through the Infrastructure Corporation (InfraCorp), has signed what it termed a ‘historic’ Memorandum of Understanding (MoU) to launch a 1GW Solar PV manufacturing plant in the country.

The signing of the MoU at the ongoing COP28 summit, the organisation said, was a significant step towards catalysing and unlocking the potential of various economic sectors such as agriculture, healthcare, and education. 

A statement from InfraCorp quoted the Coordinating Minister for the Economy, Chief Olawale Edun, as having commended the InfraCorp-led consortium for successfully securing the manufacturing plant in Nigeria.

According to the Minister, available data indicates a substantial market size for solar energy in Nigeria and the West Africa region.

However, both the country and the region, he said, have consistently ranked below their counterparts in crucial energy and associated economic indicators, falling short of their presumed economic capabilities. 

The minister further explained that the coexistence of abundant sunlight resources and limited energy access in Sub-Saharan Africa presents a complex and challenging paradox.

Despite the region’s abundance of sunlight, a vital component for solar energy generation, the task of providing widespread and reliable electricity access remains a persistent challenge, Edun added.

The establishment of a solar PV manufacturing plant in Nigeria, he noted, has the potential to address various socio-economic challenges and bring about positive impacts across different sectors.

Furthermore, the  minister expressed his confidence in InfraCorp, Solarge, and the African Green Infrastructure Investment Bank’s capacity to advance the deal and establish a 1GW Solar PV Manufacturing factory.

The agreement was initiated by Nigeria’s, Infracorp led by Dr. Lazarus Angbazo, the chief executive  who signed the contract with two partners, Solarge BV of the Netherlands and the African Green Infrastructure Investment Bank.

According to Angbazo, the objective is to revolutionise Nigeria’s energy sector and have a positive impact on various sectors of the Nigerian economy.

“The goal is to elevate Nigeria’s economy to $1 trillion and achieving this requires sustainable and climate resilient infrastructure. The project focuses on local manufacturing, green manufacturing and renewable energy, equipment manufacturing, and climate resilient infrastructure,” Angbazo said.

The event was attended by other cabinet ministers and senior government officials. 

InfraCorp is a government-supported infrastructure investment entity that was established and is co-owned by the Central Bank of Nigeria (CBN), Africa Finance Corporation (AFC), and Nigeria Sovereign Investment Authority (NSIA).

“This initiative significantly contributes to Nigeria’s industrialization drive and aligns with the vision of President Bola Tinubu to promote local manufacturing capacities, create employment opportunities, accelerate electrification, and foster economic growth while also decarbonising in line with Nigeria’s energy transition commitment.”

“The solar PV manufacturing plant will be one of the world’s first large-scale production facilities for lightweight solar panels with an ultra-low carbon footprint.

“ This project will play a crucial role in Nigeria’s commitment to sustainable local manufacturing and the development of critical infrastructure to achieve Net Zero emissions,” InfraCorp stated.