It will be the first of a series of power plants planned to be sited in Niger State to provide additional megawatts of power for the national grid.
With the agreement signed at the power ministry headquarters in Abuja, the Indian firm, Bharat Heavy Electricals will begin preliminary studies ahead of siting independent solar-powered plants in selected locations in Niger.
Power permanent secretary, Godknows Igali, who signed for the Nigerian government, said the country's power sector would remain open to investment in hopes of unbundling the sector's potential.
Sutanu Behuria, secretary of the government of India, who led the Indian side, expressed his country's interest in the provision of funds in various forms for the development of Nigeria's power sector.
He said Bharat had garnered experience from its operations in 12 African countries.