The Federal Government’s recent decision to immediately halt the importation of photovoltaic (PV) solar panels in a bid to promote local manufacturing has triggered mixed reactions across Nigeria’s renewable energy sector, raising fears about affordability, energy access, and investor confidence.
Announced by the Minister of Innovation, Science and Technology, Uche Nnaji, on March 25, 2025, during the unveiling of NEV T6 electric buses in Abuja, the policy is part of the government’s broader strategy to accelerate clean energy transition and industrialization. “The federal government has announced plans to halt the importation of solar panels to promote local manufacturing and accelerate Nigeria’s transition to clean energy,” Nnaji declared.
Backing the minister’s announcement, the Managing Director and CEO of the Rural Electrification Agency (REA), Abba Aliyu, disclosed during a roundtable with the Lagos State Government that over N200 billion had already been spent on solar panel imports. He emphasized the need to curb this spending and focus on domestic production.
However, just a day later, on March 26, Minister Nnaji shared on his official X page that Nigeria had signed a significant 2,600MW solar procurement deal with LONGi Solar France SARL and Alternative Petroleum & Power Limited (APPL). The agreement, intended to power the Green Hydrogen Hub Project in Akwa Ibom, involves the large-scale importation of solar modules—directly contradicting the import ban.
The contradiction has sparked widespread confusion among stakeholders. Experts note that while the intention to localize production is commendable, the sudden implementation and conflicting policy signals could undermine Nigeria’s clean energy agenda.
“For over two decades, Nigeria’s solar progress has relied heavily on imported PV panels, mainly from China and Europe,” said an industry analyst. “These imports powered homes and mini-grids in underserved communities. Abruptly cutting off supply without viable local alternatives could paralyze ongoing projects.”
Small and medium-sized enterprises (SMEs) in the renewable energy sector are particularly at risk. Many operate on thin margins and depend on reliable, affordable imports. A sudden ban could lead to business closures, project cancellations, and layoffs.
Government-backed rural electrification projects could also face delays due to reliance on imported components. Development partners may reconsider their investments, while affected communities risk deeper energy poverty.
Consumers may face rising costs and limited access to solar products, especially if local manufacturers are unable to meet demand. There are also concerns about quality control in the absence of structured technology transfer or incentive-driven industrial planning.
Stakeholders argue that for the import ban to succeed, it must be paired with a phased implementation plan, strong investment in local capacity, and transparent stakeholder engagement.
“If the goal is industrial growth and energy independence, then government must provide a clear roadmap, including incentives, training, and standardization,” said a sector stakeholder.
As Nigeria seeks to balance its climate goals with energy security and economic development, policy coherence and strategic planning remain critical to avoid stalling the momentum of its clean energy transition.