Nigeria Plans to Ban Solar Panel Imports, Raising Industry Concerns
The Nigerian government is proposing a ban on solar panel imports to boost local production, but economic experts warn the country is unprepared for such a move.
Minister of Innovation, Science, and Technology Uche Nnaji revealed the plan in a recent interview, stating that the decision aligns with Nigeria’s clean energy transition. He emphasized that the country has the capacity to meet its solar energy demands domestically. In March, Nigeria’s Rural Electrification Agency signed an agreement for a 1.2 GW solar assembly plant and announced plans for an additional 1 GW facility.
Nnaji also highlighted the benefits of local manufacturing, particularly for off-grid solar solutions. “We have lithium in abundance here in Nigeria, so Mr. President is already taking action,” he said. “We are adding value to our raw materials.”
However, the Centre for the Promotion of Private Enterprise (CPPE), a Lagos-based consultancy, has cautioned against the proposed ban. CPPE CEO Muda Yusuf argued that Nigeria lacks the production capacity to support such a restriction, warning that it could worsen the country’s energy crisis.
“Currently, Nigeria has one of the lowest energy access rates, with a per capita electricity consumption of about 160 kWh—far below the Sub-Saharan Africa average of 350 kWh,” Yusuf said. “Solar energy adoption has been one of the most impactful solutions for addressing this issue, and a ban on imports could set back progress.”
Yusuf also warned that restricting imports could make solar power unaffordable for many Nigerians, further limiting energy access. Instead of a ban, he urged the government to introduce incentives that support both investors and consumers.
“The announcement has already created uncertainty among investors, households, and multilateral organizations involved in Nigeria’s renewable energy sector,” he added. “It has heightened concerns about policy and political risks, which could deter future investments. The government must provide urgent clarification to restore confidence.”
As of the end of 2024, Nigeria’s total installed solar capacity stood at 144 MW, a marginal increase from 143 MW in 2023, according to the International Renewable Energy Agency (IRENA).
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