Nigeria's state-owned Rural Electrification Agency (REA) has partnered with the Infrastructure Corporation of Nigeria (InfraCorp) and Dutch solar manufacturer Solarge BV to create a special purpose vehicle that will establish and operate a 1 GW solar panel manufacturing facility in Nigeria.

The three parties have set up Solarge Nigeria Limited via a deal signed on Wednesday at InfraCorp’s office in Abuja. According to local reports, Solarge BV will hold a 49% stake in Solarge Nigeria, with InfraCorp and REA holding 26% and 25% control.

A statement released by REA says the public-private partnership will leverage InfraCorp’s investment mobilization capacity, REA’s policy leadership in rural electrification and public sector solarization and Solarge BV’s technology and manufacturing expertise to localize high-quality solar PV production in Nigeria.

The 1 GW solar panel factory will target 50% local content within the first three years.

Under the terms of the agreement, REA has committed to procure at least 200 MW of solar modules per year over five years from Solarge Nigeria Ltd, which will go towards its public electrification programs.

“Through this joint venture, we are not only creating access to clean energy but building the local capacity to manufacture it,” commented Abba Abubakar Aliyu, Managing Director and CEO of REA.

“We are excited to bring our technology and experience to this landmark initiative,” added Solarge BV CEO Joost Brinkman. “Solarge Nigeria Ltd will set a new benchmark for solar manufacturing in Africa, built by Nigerians, for Nigerians.”

In March, REA signed an agreement with Lagos-based renewables developer Oando Clean Energy for a 1.2 GW solar assembly plant. Earlier this year, the Nigerian government proposed a ban on solar panel imports to help drive local production.