FG REJECTS IMMEDIATE SOLAR IMPORT BAN TO PROTECT ENERGY TRANSITION, CONSUMER SAVINGS
Read Time:5 Minute, 56 Second
By ‘Sefiu Ajape
The Federal Government has shelved plans to immediately ban solar panel imports following opposition from business leaders and renewable energy advocates, who warned that restricting supplies before local manufacturers can meet demand could raise electricity costs and slow Nigeria’s clean energy transition.
The Minister of Innovation, Science and Technology, Kingsley Udeh, announced the decision on Friday, saying the government would prioritise quality standards for solar panels sold in Nigeria rather than exclude imported products.
The decision comes as Nigeria continues to rely heavily on imported solar equipment to provide electricity to households and businesses grappling with unreliable grid supply, while millions of citizens remain without access to electricity.
Data from Chinese customs cited by energy think tank Ember showed that China exported 2.4 gigawatts of solar panels to Nigeria in the 12 months to August 2026. The shipments were valued at $269m, underscoring the country’s dependence on imported equipment to expand solar power generation.
An analysis of the figures suggests that generating an equivalent amount of electricity using diesel-powered generators could cost about $980m annually at prevailing fuel prices. This could translate into savings of more than $700m a year if solar generation fully displaced diesel use.
Speaking in an interview with the Nigerian Television Authority obtained by our correspondent on Friday, Udeh said the government was committed to ensuring that only quality solar products were available in the domestic market, whether manufactured locally or imported from reliable sources.
He said, “Covering the energy gap in Nigeria. Part of what we are doing is referred to as renewed hope solarisation project where we are taking off federal universities, institutions, special academic institutions. Giving them access to electricity. We can’t ban solar panel importation if we can’t produce locally. But while we wait to get to that point of manufacturing capabilities within Nigeria. Which is growing.
“Soon you will see that we only have in the Nigerian market standard solar panels, either manufactured in Nigeria or imported from reliable sources, and they’re all high standard to ensure that we have energy assets being supported by solar power or renewable energy,” the minister said.
The announcement offers relief to solar importers, installers and consumers who feared that an immediate restriction could disrupt supplies, increase equipment prices and undermine investments in off-grid electricity systems.
However, energy stakeholders urged the government to translate its commitment to local manufacturing into a clear policy framework that allows domestic production to expand without making solar power unaffordable.
The President of the Renewable Energy Association of Nigeria, Ayo Ademilua, said members of the association supported the government’s ambition to develop a domestic solar manufacturing industry but cautioned that local factories were not yet equipped to meet national demand in terms of volume and price.
“Our members share the Minister’s dream of a Nigeria that makes its own solar panels. Many of us are already investing in local assembly and manufacturing, and we want that industry to grow. But we have to be honest about where we are,” Ademilua said.
He added, “Solar has become a lifeline for millions of Nigerians the grid doesn’t reach: homes, hospitals, schools, farms and small businesses. Local production is growing, but it can’t yet meet that demand in volume or price. A ban now would have raised costs, stalled projects and put the progress of the last decade at risk.”
Ademilua’s comments highlight the challenge facing the government as it seeks to encourage local manufacturing while preserving access to affordable renewable energy.
Solar panels are increasingly being used by households, small businesses, farms, hospitals and other establishments seeking alternatives to expensive petrol and diesel generators. Solar systems also help businesses reduce their exposure to fuel price fluctuations and disruptions in grid electricity supply.
The potential savings are significant. According to figures provided by energy analysts, a 420-watt solar panel costing about $60 can generate approximately 550 kilowatt-hours of electricity annually.
Generating the same amount of electricity using diesel could cost about $160 a year at current prices. Based on that comparison, the panel’s cost could be recovered in roughly five months, assuming its entire output replaces diesel-generated electricity and excluding the costs of batteries, inverters, installation and maintenance.
The Executive Director of the Global Initiative for Food Security and Ecosystem Preservation, Dr David Michael, also urged the government to pursue domestic manufacturing without compromising access to affordable clean energy.
“Nigeria shouldn’t have to choose between building a domestic solar industry and making clean energy affordable for its people. The government’s decision is a welcome recognition that both must go hand in hand,” Michael said.
He added, “The priority now is a clear, long-term plan that attracts investment in local manufacturing while ensuring millions of Nigerians can access the affordable, reliable electricity they urgently need.”
Similarly, the Programme Director of Renewables First in Pakistan, Muhammad Mustafa Amjad, said Nigeria could draw lessons from Pakistan, where affordable solar equipment had enabled households and businesses to reduce their dependence on conventional electricity supplies.
“Pakistan showed the world what happens when ordinary households and businesses get access to cheap solar. That experience is now shaping thinking across the world and Nigeria; with abundant sunshine, a deeply entrepreneurial population and a costly dependence on diesel generators; is primed to carry this revolution into Africa. Keeping the door open to affordable solar imports will make it possible,” Amjad said.
The Nigeria Campaign Director of the Secure Energy Project, Joseph Ibrahim, also welcomed the decision, describing affordable solar access as a national priority amid persistent electricity supply challenges.
“This is a welcome step for Nigeria’s clean energy future. At a time when millions of Nigerians still struggle to access reliable electricity, keeping solar panels affordable and accessible must remain a national priority,” Ibrahim said.
He added, “We welcome the government’s recognition that building local manufacturing capacity takes time, investment and the right support. This has been our position as the Solar Power Nigeria coalition from the beginning.”
Ibrahim called for a long-term policy to support domestic manufacturers, attract investment and enable locally produced panels to compete with imports on price and quality.
“The priority now must be to develop a clear, long-term plan that supports local manufacturers, attracts investment and ensures that solar remains affordable and accessible for Nigerian households and businesses,” he said.
The debate over solar imports dates back to March 2025, when Udeh’s predecessor, Uche Nnaji, proposed restricting imports to encourage local manufacturing. Nnaji left office in October 2025, but the proposal continued to create uncertainty for businesses and renewable energy campaigners.
In April 2025, the head of the Rural Electrification Agency said imports would not be restricted until domestic production capacity could meet demand. However, the absence of a formal withdrawal of the proposed restriction left industry operators concerned that a ban could still be introduced.
Renewable energy advocates are now calling for a phased transition over three to five years, supported by published timelines, incentives for manufacturers and measurable targets for expanding local production.
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