Oriental News Conference: Abba Aliyu Raises Red Flag Over Local Capacity Gap As Nigeria’s $2bn Renewable Energy Investment Yields Only 76,000 Jobs

Oriental News Conference

 

OpenLife News reports that Dr. Abba Aliyu, Managing Director of the Rural Electrification Agency (REA), has disclosed that Nigeria’s renewable energy workforce participation remains significantly low, with the sector generating only about 70,000 jobs despite attracting over $2 billion in cumulative investment, compared to the 16.2 million jobs supported by the global solar industry.

The gap, according to the REA MD, underscores the urgent need for a deliberate shift toward local capacity development, warning that Nigeria cannot build a sustainable energy transition on permanent import dependence.

The REA MD made this known in his keynote address at the 2026 Oriental News Conference held in Lagos, on Thursday.

Aliyu who was represented by Gboyega Ayoade, Executive Director, Corporate Services, stressed that energy policy must double as industrial policy—driven by local participation rather than expatriate dominance.

He said, “As renewable energy deployment grows, we must also grow local capacity for assembly, manufacturing, installation, operation, maintenance, recycling and skills development.

“This is where the Nigeria First policy becomes important. Clean energy must become a platform for local content, job creation and industrial value capture.

“Every major renewable energy programme should ask a simple question: beyond supplying electricity, what domestic capacity does this project build?

“Does it create jobs for Nigerian engineers and technicians? Does it use local installers? Does it create demand for local assembly? Does it support Nigerian firms? Does it strengthen the supply chain? Does it improve skills and technology transfer?

“This is how clean energy becomes an industrial policy tool,” he stated.

He further noted that REA’s programmes are being repositioned to align with this approach, leveraging clean energy as a strategic industrial policy tool.

“REA’s programmes are increasingly being positioned within this logic. Large-scale deployment creates predictable demand. Predictable demand gives confidence to manufacturers. Manufacturing creates jobs. Jobs expand incomes. And stronger local supply chains reduce costs over time.”

Aliyu revealed that key segments, including public sector solarisation, mini-grids, agricultural energy hubs, and institutional electrification, can serve as anchor markets for domestic renewable manufacturing rather than merely energy access projects.

The REA boss further emphasised that despite strong potential, many solar projects fail to advance due to weak bankability structures rather than technical limitations.

He explained that capital will only flow where projects are well-prepared, risks clearly allocated, revenue streams credible, and institutions trusted.

For him, the core constraint is not potential—but bankability.

“Projects often require stronger feasibility studies, clearer demand assessment, improved payment structures, robust technical preparation, environmental and social safeguards, deeper community engagement, and effective risk mitigation instruments.

“To address this, REA is working with development partners, financial institutions, and private developers to strengthen project preparation and financing frameworks.

“Through performance-based grants, minimum subsidy frameworks, blended finance, demand aggregation, public-private partnerships, and green finance platforms, the agency aims to improve investability across the sector,” he said.

Aliyu disclosed that Nigeria’s decarbonisation strategy must extend beyond emissions targets to a broader economic framework linking energy, finance, industry, and investment.

Speaking on Driving Nigeria’s Decarbonisation through Strategic Promotion of Clean Energy — The REA Experience, he said:

“For Nigeria, decarbonisation cannot be reduced to a narrow conversation about emissions alone.

“It must be a conversation about competitiveness, industrial renewal, energy security, climate resilience, financing, technology, and inclusive growth.

“It must recognise the structure of our economy, the role of oil and gas, the urgency of expanding electricity access, and the need to position clean energy as a catalyst for national development,” he said.

He stressed that achieving this requires coordinated, system-wide reforms.

“Decarbonisation cannot be achieved through isolated rules. It requires an integrated regulatory architecture that connects energy, finance, environment, industry and investment.”

He added: “Regulation must therefore enable innovation while protecting consumers and ensuring market discipline. This is where broad regulatory reform becomes essential.”

“For the extractive industry, regulations around emissions management, carbon capture, gas flaring reduction, clean energy adoption, environmental reporting and sustainable finance must be clear and coordinated.

For the power sector, regulations around mini-grids, embedded generation, net metering, wheeling, storage and distributed energy resources must continue to evolve.”

Aliyu cautioned that Nigeria’s decarbonisation pathway must reflect its development realities.

“We are a developing country with a growing population, expanding energy demand and significant infrastructure deficits.

“Millions of Nigerians still require access to reliable electricity. Businesses still face high energy costs. Public institutions still depend heavily on diesel. Industrial clusters still struggle with unreliable supply. Rural communities still need power for productive use.

“Therefore, 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.

The REA MD said decentralised renewable energy solutions remain critical to achieving this balance.

“For many years, the energy transition was sometimes presented as a trade-off between development and climate responsibility.

“But the evidence from Nigeria’s renewable energy access experience shows the opposite.

“Clean energy can reduce emissions while improving livelihoods. It can lower the cost of production while improving reliability.

“It can serve communities that the conventional grid may not reach quickly. It can power hospitals, schools, markets and farms.

“It can also create new industries around solar, storage, metering, digital monitoring, installation, maintenance and local manufacturing.

“In this sense, clean energy is not only an environmental solution. It is an economic development strategy,” he stated.

Aliyu revealed that thee REA’s interventions are helping transition Nigeria from fragmented electrification efforts to a more structured renewable energy market.

“Key programmes include the Nigeria Electrification Project, the Distributed Access through Renewable Energy Scale-up programme, the Energizing Education Programme, the National Public Sector Solarisation Initiative, and various mini-grid and agricultural energy projects.

According to him, those initiatives demonstrate that renewable energy can be deployed at scale through practical, private-sector-driven models.

The REA MD emphasised that decarbonisation cannot be achieved through isolated rules, adding that it requires an integrated regulatory architecture that connects energy, finance, environment, industry and investment.

“Government must provide clear policy direction, while the regulators must create confidence, the private sector must invest, financial institutions must innovate and development partners must de-risk priority markets,” Aliyu noted.

He also disclosed that the extractive industry must reduce emissions and support cleaner development models, while the media must continue to create informed platforms for accountability and public understanding.

The REA MD therefore commended Oriental News Nigeria for convening the conference, noting that the media plays a critical role not only in reporting events but in shaping informed national dialogue.