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PowerChina’s Africa Regional Director, Timmy Shi, says high borrowing costs are discouraging investment in Nigeria’s solar energy sector.
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She identifies access to cheaper financing, investment protection and guarantees on returns as key factors influencing foreign investors.
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Shi says mini-grids, locally adapted solar systems and consumer education offer opportunities to expand renewable energy access in Nigeria.
October 15, (THEWILL) – High interest rates in Nigeria are discouraging investment in the solar energy sector, with PowerChina’s Africa Regional Director, Timmy Shi, identifying the cost of financing as a major obstacle for foreign companies seeking to establish businesses in the country.
Shi said Chinese companies had an advantage in the Nigerian market because they could access cheaper financing, allowing them to compete more effectively with businesses facing higher borrowing costs locally.
She spoke during a power panel session at the recent Association of Energy Correspondents of Nigeria Energy Conference and Awards, where PowerChina I²-ESS Energy Storage Centre received the Excellence in Sustainable Manufacturing and Energy Storage Company of the Year award.
“Chinese companies are coming in because they have access to cheaper funds. That is why Chinese companies and their products have flooded the Nigerian market and are leading.
“Money from China is cheaper, but high bank interest rates are keeping many companies from investing in solar in Nigeria,” she said.
Shi said foreign investors also needed assurances that their investments would be protected and that they could repatriate funds without unnecessary difficulties.
“Investors’ main concern is whether they can easily repatriate their money. There should be some level of commercial guarantee of returns on investment.
“And given that interest rates here are higher than what is sustainable in China, if you want to bring your business to Nigeria and establish here, you need a guarantee that you are protected in this environment,” she added.
She maintained that Chinese companies were willing to invest in Nigeria, particularly in manufacturing, provided the business environment supported their operations.
“China is ready. The environment should welcome China,” she said.
Financing and grid instability shape solar opportunities
Beyond financing costs, Shi argued that Nigeria’s electricity challenges required solutions tailored to local operating conditions rather than simply increasing the supply of solar products.
She said the market already had numerous solar brands but needed greater understanding of the country’s electricity consumption patterns, operating environment and customer requirements.
“In this market, there is no shortage of solar products. If you go to Alaba Market, you can see 1,000 Chinese brands selling different products.
The shortage is not of good solar products, but of understanding of the Nigerian operational environment: systems that work for Nigeria’s peculiar needs,” she said.
Shi also pointed to the instability of the national grid as a factor increasing demand for alternative electricity sources.
“The grid is not stable. Nigerians cannot wait any longer. They need quick solutions to get out of the power problem,” she said.
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She identified the mini-grid market as a significant opportunity for solar energy companies, noting that government incentives were available to attract operators willing to provide electricity to households without access to the national grid.
Mini-grids can provide localised electricity supply to communities and businesses, particularly in areas where extending the national grid may be difficult or costly.
Their wider adoption, however, depends on financing, suitable technology, reliable maintenance and commercially sustainable operating arrangements.
Shi said manufacturers seeking long-term success in Nigeria must prioritise product quality, after-sales service and consumer education.
She explained that educating consumers should go beyond basic instructions on operating solar systems to include awareness of technological developments and practical training for young people, installers, artisans and sales personnel.
PowerChina calls for locally adapted solutions
Shi further stressed that manufacturers needed to understand Nigeria’s cultural differences and electricity consumption patterns when designing and supplying solar systems.
She said PowerChina was working to build local capacity and provide education while developing solutions that remained sustainable and cost-effective.
Her remarks highlight the importance of combining access to financing with technology suited to local conditions, skilled personnel and reliable customer support if solar power is to expand beyond the sale of equipment into dependable electricity supply.
On the award received by PowerChina I²-ESS, Shi said the recognition reflected the contributions of companies providing quality products and supporting Nigeria’s clean energy transition.
“We appreciate NAEC, its leadership, and the Award Screening Committee for this recognition of our contributions to clean energy transition, energy storage innovation, and the development of reliable renewable energy solutions in Nigeria,” she said.
The Chairman of the Conference Planning Committee, Dr Adeola Yusuf, said the awards were based on nominees’ contributions, achievements, innovation and broader impact on Nigeria’s energy sector.
The concerns raised by Shi place financing conditions alongside grid reliability, technology adaptation and local capacity development as important considerations for companies seeking to expand solar investment in Nigeria.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
