The Federal Government has announced its support for a $150 million lithium battery assembly plant in Lagos as part of ongoing efforts to boost local manufacturing capacity in Nigeria’s renewable energy sector.
The Managing Director and Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, disclosed this on Monday during a roundtable meeting between the REA and the Lagos State Government held in Victoria Island.
The session also featured the signing of a Memorandum of Understanding (MoU) aimed at accelerating rural electrification projects across communities in Lagos.
Aliyu confirmed that the agency is in the process of finalising a joint development agreement with renewable energy firm Green World for the establishment of the lithium battery assembly plant.
The initiative is expected to increase energy storage capacity in Nigeria and reduce reliance on imported energy components.
According to the REA chief, this investment aligns with the Federal Government’s push to localise the manufacturing of renewable energy technologies and reduce capital flight associated with solar panel and battery imports.
“We have already crystallised the emergence of PV panel manufacturing plants in Lagos. Now we are moving into battery assembly. The $150 million lithium battery project with Green World is a significant step toward achieving full-scale domestication of renewable energy equipment,” Aliyu said.
He added that Lagos, being Nigeria’s commercial capital, will lead the country’s renewable energy industrialisation, citing previous collaborations that have led to the expansion of a PV panel manufacturing plant in Ikotun from 10 megawatts to 110 megawatts capacity with REA’s support.
The announcement comes as the Federal Government intensifies its campaign to phase out the importation of photovoltaic (PV) panels, which has cost Nigeria over N200 billion in recent years.
The REA chief said it is imperative to reverse the trend through strategic investments in local manufacturing infrastructure.
In support of this effort, the Minister of Science and Technology, Uche Nnaji, reiterated the government’s resolve to promote indigenous production capabilities.
Nnaji stated that the National Agency for Science and Engineering Infrastructure (NASENI) already has facilities for solar panel production and that Executive Order No. 5 will be enforced to limit imports and strengthen local industries.
However, the Renewable Energy Association of Nigeria (REAN) cautioned against implementing an import ban without first building sufficient local capacity.
According to REAN, the renewable energy sector has become a vital source of power for underserved communities and a driver of economic inclusion.
A premature ban could disrupt ongoing progress and investment flows.
“Solar energy remains critical for households, businesses and essential services in off-grid areas. While local production is essential, care must be taken not to undermine access and affordability during the transition,” the association stated.
Despite these concerns, the Federal Government and Lagos State remain optimistic that the $150 million lithium battery plant will signal a shift in Nigeria’s industrial landscape and drive long-term sustainability in the clean energy sector.
