The Nigerian government is planning to prohibit the import of solar panels to stimulate domestic production, but the Center for the Promotion of Private Enterprise, a consulting firm based in Lagos, warns that the country is not prepared for such a limitation.
The government of Nigeria Plans to prohibit the import of solar panel to stimulate local production. Local media have reported that the technological minister of the country Uche Nnaji unveiled the plan during an interview last week.
NNAJI said the move will stimulate the clean energy transition from Nigeria, and adds that the country has the capacity to satisfy its solar energy requirements locally. In March, the National Electigation Office of Nigeria signed an agreement for a 1.2 GW Solar Assembly PlantWhile announcing plans for another 1 GW factory.
The minister also said that the expansion of local solar production in the sun and companies will switch to off-grid solutions. “We have lithium in abundance here in Nigeria, so Mr. President is already taking action,” said Nnaji. “We add value to our raw materials.”
The Center for the Promotion of Private Enterprise, an economic consultancy established in Lagos, has released a statement that is advised against the policy proposal. CEO Muda Yusuf said that Center for the Promotion of Private Enterprise believes that Nigeria is not well placed for a ban on importing solar panels.
“Currently, Nigeria has one of the worst energy access with an electricity consumption per head of the population of approximately 160 kWh, far below the average of the 350 kWh sub-Sahara Africa,” Yusuf explained. “The approval of solar energy solutions is one of the most impactful government initiatives to tackle this problem and it has received a remarkable traction. A ban on the import of solar panels in the light of the strikingly insufficient domestic production capacity would worsen the energy crisis of the country.”
Yusuf added that the prohibition would also worsen access to energy consumption and put the costs of solar energy outside the average Nigerian. Instead, he called in ways to stimulate affordability, such as introducing tax and monetary stimuli that support both investors and admission.
He said that NNAJI’s announcement of a planned import ban is already generating concern among the investment community, households and multilateral organizations in Nigeria.
“It has considerably increased the policy and political risk of investing in solutions for renewable energy in Nigeria,” Yusuf added. “This should be avoided because of the adverse impact on the trust of investors. Urgent clarification of the position of the government is needed to restore that trust.”
The cumulative solar capacity of Nigeria was at the end of 2024 at 144 MW, an increase of 143 MW at the end of 2023, according to the latest figures from the International Renewable Energy Agency (Irena).
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