The Renewable Energy Association of Nigeria has expressed concerns over the federal government’s plan to ban solar panel imports.
In a statement on Wednesday, REAN emphasized that such a decision should be reconsidered carefully, as it could hinder the growth of the renewable energy sector in the country.
Recently, the Minister of Science and Technology, Uche Nnaji, said the Federal Government is willing to support local manufacturing of solar panels while restricting imports.
Nnaji emphasized Nigeria’s potential to produce solar panels through the National Agency for Science and Engineering Infrastructure.
“With NASENI here, you know that we have panels. It has a factory that has started producing solar panels, and other private individuals are also producing solar panels as we speak. So, all we need to do is, even through science and technology, through our Presidential Executive Order No. 5, we will stop all these importations of solar panels. We will support our local industries to grow,” he said.
In response, the REAN acknowledged the government’s intentions to promote local manufacturing, strengthen the economy, and enhance energy security.
The President of REAN, Mr Ayo Ademilua, noted in the statement that the government has commendable aspirations which the REAN wholeheartedly supports.
“However, creating an enabling environment for businesses to thrive must come before any restrictive measures that could stifle progress and inadvertently hurt the very industry the government seeks to empower.
“Solar energy has become a beacon of hope for millions of Nigerians who remain underserved by the national grid. Businesses, communities, and individuals rely on solar solutions to power homes, schools, hospitals, and enterprises. The renewable energy sector has grown significantly, attracting investment and fostering innovation. A ban on solar imports, without first strengthening local production capabilities, risks derailing this progress,“ Ademilua warned.
President of REAN, emphasized that local solar panel production capacity cannot be built overnight.
He cautioned that unless the government addresses key challenges, such as infrastructure issues, technology investment, and a supportive policy framework, achieving this goal would be difficult.
He continued, “Manufacturing is not built overnight. For local production to scale and compete globally, manufacturers need access to finance, infrastructure, technology, and skilled labour.
“The current reality presents hurdles—high production costs, supply chain inefficiencies, and limited access to raw materials. Expecting local manufacturers to meet national demand without addressing these challenges is unrealistic and counterproductive.
“Restricting imports too soon could lead to unintended consequences. Prices may rise, making solar solutions less accessible for ordinary Nigerians.”
The REAN boss argued that businesses reliant on imported components could face difficulties in staying afloat, potentially resulting in job losses rather than creating new employment opportunities.
He noted that the momentum the renewable energy sector has gained could slow down, potentially discouraging investors due to the uncertainty in the policy environment.
He advised the government to adopt a phased approach rather than implementing an outright ban.
“Rather than an outright ban, a phased approach that nurtures local manufacturing while keeping the market open to necessary imports would be more effective. Incentivising local producers through tax breaks, grants, and infrastructure support would build the foundation needed for long-term sustainability. Encouraging partnerships between international companies and Nigerian firms would facilitate knowledge transfer and technology exchange, strengthening the industry from within,” Ademilua noted.
