Nigeria’s Renewable Energy Sector Falling Short On Job Creation, REA Boss Says
The Managing Director of the Rural Electrification Agency, Abba Aliyu, has said Nigeria’s renewable energy sector is not delivering enough jobs despite attracting more than $2 billion in clean energy investment to date. Speaking at the 2026 Oriental News Conference in Lagos on Saturday, Aliyu, who was represented by Gboyega Ayoade, Executive Director of Corporate Services, disclosed that the sector has created only about 70,000 jobs. He described the figure as far below the employment potential of the industry, especially when compared to global trends. According to him, the worldwide solar industry currently supports an estimated 16.2 million jobs, underscoring the wide gap between Nigeria’s investment inflows and employment outcomes. Aliyu warned that Nigeria cannot sustain its energy transition if it continues to rely heavily on imported technologies and foreign expertise. He said the disparity between investment and jobs points to the urgent need for a deliberate shift toward local capacity development across the entire renewable energy value chain. The REA chief argued that energy policy must also function as industrial policy. He said every major renewable energy programme should be assessed not only by the amount of electricity it supplies, but also by the domestic capacity, skills and industries it helps to build. “As renewable energy deployment grows, we must also grow local capacity for assembly, manufacturing, installation, operation, maintenance, recycling and skills development,” he said. “This is where the Nigeria First policy becomes important. Clean energy must become a platform for local content, job creation and industrial value capture.” He urged policymakers and investors to ask critical questions before approving projects: whether they create jobs for Nigerian engineers and technicians, whether they use local installers, whether they generate demand for local assembly, whether they support Nigerian firms, whether they strengthen the supply chain, and whether they improve skills and technology transfer. “This is how clean energy becomes an industrial policy tool,” he added. Aliyu said the REA is repositioning its programmes to support local manufacturing and skills development by ensuring large-scale deployment that creates predictable demand for manufacturers. He listed the Nigeria Electrification Project, the Renewable Energy Scale-Up Programme, the Energizing Education Programme, and the National Public Sector Solarization Initiative as efforts already helping to build a more structured renewable energy market through private sector-led models. On financing, Aliyu said the biggest constraint to renewable energy investment in Nigeria is not resource potential but project bankability. He explained that many projects fail to attract funding because of weak feasibility studies, poor demand assessments, inadequate payment structures, and insufficient risk mitigation. “The core constraint is not potential but bankability,” he said. To address this, the agency is working with development partners, financial institutions and private developers to improve project preparation. He said this includes the use of performance-based grants, blended finance, public-private partnerships and green finance platforms. Speaking on decarbonisation, Aliyu said Nigeria’s energy transition must go beyond emissions reduction to also drive industrialisation, economic growth and expanded energy access. “The challenge before us is not simply to reduce emissions. The real challenge is to expand energy access, grow the economy, industrialise, and reduce emissions at the same time,” he said. He concluded that for clean energy to fulfill its promise in Nigeria, it must be deliberately structured to create jobs, retain value locally, and build a stronger domestic industry.
