A new report by global consulting firm PricewaterhouseCoopers has urged the Federal Government to reconsider plans for an immediate restriction on solar panel imports, warning that such a move could undermine Nigeria’s fragile progress in energy access and weaken investor confidence in the renewable energy sector.
Titled “Rethinking Nigeria’s Proposed Solar Panel Import Policy”, the report—obtained by our correspondent on Friday—acknowledges the merits of promoting local manufacturing and industrialisation but emphasizes the need for a gradual, phased implementation to avoid unintended disruptions.
The recommendations follow the Federal Government’s announcement of a proposed ban on solar panel imports, citing concerns over the influx of substandard products. The policy, spearheaded by the Ministry of Science and Technology, aims to localise production, conserve foreign exchange, and generate employment.
However, PwC cautioned that without a well-sequenced implementation plan, the move could derail Nigeria’s clean energy progress. The report highlighted that in Q4 2024, Nigeria imported solar panels worth approximately N237.3 billion, but this figure dropped by about 89 per cent to N125.29 billion in Q1 2025—an indication of the policy’s early market impact.
“In 2023 alone, Nigeria imported over four million solar panels, valued at more than $200m. This is not just a reflection of our energy crisis, but also of the absence of adequate local manufacturing capacity,” the report said.
Instead of an outright ban, PwC recommended a three- to five-year phased reduction in solar panel imports to allow local manufacturers time to scale up production, meet market demand, and develop robust quality assurance systems.
“The proposed import restriction policy reflects Nigeria’s ambition for energy security and industrial growth,” the report stated. “However, a measured and strategic approach is essential to prevent unintended disruptions to the renewable energy sector.”
“A tiered strategy that includes import quotas, progressive tariffs, or blended procurement models would ensure supply continuity while attracting long-term investments under a stable regulatory framework,” the report recommended.
It added, “The goal should be to scale local manufacturing without compromising access to affordable solar energy. Rather than an instant restriction, Nigeria should adopt a three to five-year phased reduction in solar panel imports.”
PwC acknowledged that the Nigerian government has introduced several incentives—such as the Pioneer Status Incentive, import duty waivers, VAT exemptions, and access to green finance instruments—to support the renewable energy sector. However, the firm noted that these incentives remain largely underutilised due to bureaucratic bottlenecks, fragmented application processes, and low stakeholder awareness.
“There is an urgent need for single-window applications, clearer eligibility criteria, and renewable energy desks in key MDAs,” PwC stated.
It further recommended the establishment of dedicated renewable energy industrial zones, equipped with shared infrastructure, simplified permitting processes, and strategic locations near ports and transport corridors to help reduce logistics costs.
The report emphasized that solar manufacturing extends beyond equipment to human capital. It called on the government to collaborate with universities, polytechnics, and vocational institutions to develop a national renewable energy skills framework, ensuring a steady pipeline of trained professionals to support the sector’s growth.
