RETHINKING NIGERIA’S SOLAR PANEL IMPORT BAN

Amidst Nigeria’s efforts to expand energy access and accelerate its transition to cleaner energy
sources, the federal government (FG) has announced plans to immediately halt the importation
of solar panels and instead, domesticate the manufacturing of renewable equipment. This
sudden end to the importation of photovoltaic solar panels into Nigeria raises important
questions. While the goal of promoting local manufacturing is laudable, the abruptness of such a
move could risk disrupting Nigeria’s rapidly-growing usage of solar energy, thereby affecting
affordability, accessibility and investor confidence. As the nation walks the delicate line between
meeting its climate targets and bolstering energy sovereignty, it is critical to consider how
policies, if not carefully measured, can sometimes complicate the very challenges they seek to
solve.
Over the past two decades, Nigeria’s solar energy growth has heavily-depended on imported
photovoltaic (PV) panels. Records show that most of these imports came from China and
Europe, powering home solar systems and mini-grids across rural, urban and peri-urban
communities. In other words, these imports played a crucial role in lighting up areas previously
without electricity access and/or cut off from the national grid. While imports enhanced access
to cleaner energy technologies, heavy reliance on foreign PV panels at the same time stunted
the growth of local PV manufacturing and assembly industries. Domestic companies struggled
to compete with the economies of scale and pricing advantages enjoyed by foreign
manufacturers. Compounding the challenge, the Standards Organisation of Nigeria (SON)
repeatedly flagged the unchecked influx of substandard solar products as a persistent threat to
consumer trust and sector growth. Not only that, large volume of PV imports continued to exert
pressure on Nigeria’s foreign exchange reserves, heightening concerns about the sustainability
of a heavily import-dependent transition to cleaner energy future.
Faced with these challenges, FG is now advocating for a ban on solar panel imports with a view
towards fostering industrialization, creating jobs, and strengthening energy security and
independence. This new policy direction was publicly articulated on March 25, 2025, when the
Honourable Minister of Innovation, Science and Technology, Uche Nnaji, stated during the
unveiling of the NEV T6 electric buses in Abuja that “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.” Corroborating this position, the Managing Director and
Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, reiterated during a
roundtable with the Lagos State Government that "the federal government has maintained the
need to end the importation of photovoltaic solar panels into Nigeria." He also lamented N200
billion already been spent on imports.
In a sharp twist of policy contradiction, the minister announced a day later (March 26, 2025) via
his official X page (formerly Twitter) that Nigeria had signed a landmark 2,600MW solar deal
with LONGi Solar France SARL and Alternative Petroleum & Power Limited (APPL). This
agreement, one of the largest solar procurement deals in sub-Saharan Africa involves the
supply of solar modules to power Nigeria’s Green Hydrogen Hub Project at the Liberty Oil &
Gas Free Trade Zone in Akwa Ibom State. Without clearly disclosing any deliberate
arrangements in place for technology transfer or domestic industrial development, the deal
promises to position Nigeria as a regional leader in green hydrogen production with applications
in clean mobility, exports, and industrial uses. More worryingly, the project will involve heavy
importation of solar modules which is inconsistent with the announced plan to support local
solar panel manufacturing or domestication efforts.

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This contradiction between aspiration and action reveals a deeper tension that deserves
attention. While FG aspires to end solar imports to boost local production, a reality check shows
that Nigeria is still signing large importation deals to meet urgent energy demands. These
contradictions are sending conflicting to stakeholders: governments, businesses and the civil
society, especially advocates clamoring for a green economy in Africa. It is not only creating
confusion among project developers, financiers, and investors but also risks undermining
confidence in Nigeria’s climate targets and low-carbon policy direction at a time when stability is
crucial.
Beyond the contradictions, an abrupt halt to solar panel imports could trigger significant
unintended consequences across the energy sector. Many small and medium-sized enterprises
(SMEs) in the renewable energy sector—from mini-grid developers to rooftop
installers—operate on thin margins. Denying them access to reliable and functional panels
without first ensuring the availability of viable local alternatives could trigger massive business
losses, project cancellations, layoffs, and even sector-wide contraction. Government-backed
energy access projects, such as mini-grids for rural electrification rely heavily on imported
panels to meet deployment targets. A sudden import ban could delay these projects,
compromising Nigeria’s energy access goals and straining partnerships with development
financiers. Moreover, limited access to electricity could worsen the existing energy poverty in
low-income communities, restricting development opportunities and further deepening the
energy divide.
Ultimately, it is the Nigerian consumer who stands to bear the brunt. Solar systems — already a
high-cost investment for many households and small businesses — could become even more
expensive if scarcity drives prices upward. Worse still, a mismatch between local production
capacity and national demand could lead to supply shortages, lower product quality, and
erosion of trust in clean energy solutions. In the absence of a well-sequenced domestication
plan that includes incentives, technology transfer agreements, and capacity building for local
manufacturers, the good intentions behind the import ban risk translating into reduced energy
access, slower climate action, and heightened economic hardship for millions of Nigerians.
As Nigeria charts its course toward energy security, industrialization, and clean energy growth, it
is essential that policies aimed at boosting local industries are clearly articulated with defined
timelines, stakeholder consultation, and targeted investment in manufacturing capacity.
Otherwise, the rush to substitute imports without first securing domestic readiness could slow
down, rather than speed up, the energy transition the country urgently needs.
Kehinde Aderogba and Oluwatosin Akinjiola: Kenny and Tosin both work at Spaces for Change
[S4C] on the Energy and Environmental Justice (EEJ) desk. They can be reached via
extractives@spacesforchange.org