Oando Clean Energy Limited (OCEL), a subsidiary of the Lagos-based energy giant Oando Plc, has signed a Memorandum of Understanding (MoU) with the Rural Electrification Agency (REA) to develop a 1.2-gigawatt (GW) solar energy project.
This agreement represents a significant milestone in developing Nigeria’s renewable energy sector. This initiative, which was announced on March 19, 2025, is poised to become Nigeria’s largest solar power project, bolstering Oando’s leadership in renewable energy and advancing Nigeria’s sustainability objectives.
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Oando and REA: A game-changing partnership for solar energy
The MoU, signed in Abuja, marks a strategic alliance between Oando Clean Energy and the REA, a federal agency dedicated to electrifying rural Nigeria. This 1.2 GW solar energy project integrates off-grid power plants, mesh electricity generation, interconnected grids, and a pioneering solar module assembly plant. Abubakar Abba Aliyu, REA’s Managing Director, described it as a “game-changer” for Nigeria’s clean energy landscape, emphasising its potential to position Nigeria as a renewable energy hub in Africa.
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Ademola Ogunbanjo, President and CEO of Oando Clean Energy, highlighted the project’s innovative edge. “Oando is building a solar modular assembly plant in Nigeria that will produce solar panels and recycle them into raw materials,” he said. This first recycling feature in Africa underscores Oando’s commitment to sustainable clean energy solutions.
Solar energy project scope and implementation in Nigeria
The 1.2 GW solar energy project will roll out in phases, with Oando launching a 600-megawatt (MW) production line in 2026. This initial phase will focus on manufacturing solar photovoltaic (PV) modules for Nigeria and regional markets.
The inclusion of a recycling facility enhances the project’s appeal, addressing solar panel lifecycle management. Funded under the $950 million Distributed Access through Renewable Energy Scale-up (DARES) program—backed by the World Bank and Japan International Cooperation Agency—this initiative aims to connect 17 million Nigerians to clean energy.
Oando drives Nigeria’s clean energy transition
Despite its vast oil reserves, Nigeria faces significant energy poverty, with over 40 percent of its population lacking reliable electricity. Oando’s shift from fossil fuels to solar energy reflects a global trend toward sustainability. The 1.2 GW project aligns with Nigeria’s Energy Transition Plan, targeting net-zero emissions by 2060, and complements initiatives like the Solar Power Naija program. By leveraging Nigeria’s abundant solar potential—over 7,000 MW—Oando and REA are accelerating the nation’s clean energy revolution.
Economic and environmental benefits of Solar energy in Nigeria
The Oando-REA solar energy project promises substantial economic and environmental gains. It will create thousands of jobs in Nigeria, from solar panel assembly to technical roles, boosting local economies. The solar module plant will reduce import dependency, strengthening Nigeria’s industrial base.
Environmentally, this clean energy initiative supports decarbonisation efforts, while the recycling line promotes a circular economy, tackling solar waste—a growing concern in renewable energy adoption.
While the MoU signals ambition, challenges like funding delays, regulatory hurdles, and infrastructure gaps could slow progress.
However, Oando’s partnership with REA and international support from the World Bank provides a strong framework for success. This solar energy project could position Nigeria as a leader in Africa’s renewable energy market, inspiring localised solar PV manufacturing across the continent.
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A bright future for clean energy in Nigeria with Oando
The Oando-REA collaboration is a pivotal juncture in the future of Nigeria’s energy sector as of March 19, 2025. By utilising solar energy, Oando is resolving Nigeria’s electricity crisis and preparing the country for a more prosperous and environmentally friendly future.
Oando is at the forefront of the clean energy movement, and stakeholders are anxious to observe how this 1.2 GW solar energy project will transform Nigeria into a renewable energy powerhouse.