FG Rejects Immediate Solar Import Ban To Protect Energy Transition, Savings

The Federal Government has shelved plans to immediately ban solar panel imports following concerns from business leaders and renewable energy advocates that such a move could increase electricity costs and slow Nigeria’s transition to clean energy.

The Minister of Innovation, Science and Technology, Kingsley Udeh, announced the decision on Friday, assuring Nigerians that the government would prioritise quality standards for solar panels sold in the country rather than exclude imported products from the market.

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 still lack 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, highlighting the country’s dependence on imported equipment to expand solar power generation.

An analysis of the figures suggested that generating an equivalent amount of electricity with diesel-powered generators could cost about $980m annually at prevailing fuel prices. This could translate into savings of more than $700m yearly if solar generation fully replaces diesel-powered electricity.

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 the government was implementing the Renewed Hope Solarisation Project to provide electricity to federal universities and other specialised academic institutions.

“Part of what we are doing is referred to as the Renewed Hope Solarisation Project, where we are taking off federal universities and institutions, including special academic institutions, and giving them access to electricity,” the minister said.

He added that the government could not ban solar panel imports before the country developed sufficient local manufacturing capacity.

“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 standard solar panels in the Nigerian market, either manufactured in Nigeria or imported from reliable sources,” he said.

Udeh said the government wanted to ensure that solar and other renewable energy assets met high standards to support the country’s electricity needs.

The decision is expected to ease concerns among solar importers, installers and consumers who feared that an immediate restriction could disrupt supply, raise equipment prices and undermine investments in off-grid electricity systems.

However, energy stakeholders said the government needed to translate its commitment to local manufacturing into a clear policy framework that would allow domestic production to expand without making solar power unaffordable.

The President of the Renewable Energy Association of Nigeria, Ayo Ademilua, said 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 noted that solar power had become a vital source of electricity for millions of Nigerians, including households, hospitals, schools, farms and small businesses beyond the reach of the national grid.

“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,” he added.

Ademilua’s comments underscore the challenge facing the government as it seeks to promote domestic manufacturing while ensuring continued access to affordable renewable energy.

Solar panels are increasingly being adopted 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.

Figures provided by energy analysts indicated that a 420-watt solar panel costing about $60 could generate approximately 550 kilowatt-hours of electricity annually.

Generating the same amount of electricity with diesel could cost about $160 a year at current prices. Based on that comparison, the cost of the panel could be recovered in roughly five months, assuming its entire output replaces diesel-generated electricity. The estimate excludes the costs of batteries, inverters, installation and maintenance.

The Executive Director of the Global Initiative for Food Security and Ecosystem Preservation, Dr David Michael, said the government should promote 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 called for a clear, long-term plan capable of attracting investment in local manufacturing while ensuring that Nigerians continued to have access to affordable and reliable electricity.

Similarly, the Programme Director of Renewables First in Pakistan, Muhammad Mustafa Amjad, said Nigeria could draw lessons from Pakistan’s experience, 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,” Amjad said.

He argued that keeping the market open to affordable solar imports would help Nigeria expand access to renewable energy.

The Nigeria Campaign Director of the Secure Energy Project, Joseph Ibrahim, also welcomed the decision, describing access to affordable solar power as a national priority at a time when millions of Nigerians continue to face 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 said the government’s recognition that building local manufacturing capacity required time, investment and appropriate support was consistent with the position of the Solar Power Nigeria coalition.

Ibrahim urged the government to develop a long-term policy that would support local manufacturers, attract investment and enable solar panels produced in Nigeria to compete with imported products on price and quality.

The debate over solar imports dates back to March 2025, when Udeh’s predecessor, Uche Nnaji, proposed restricting imports as part of efforts to encourage domestic manufacturing. Nnaji left office in October 2025, but the proposal continued to generate uncertainty among businesses and renewable energy advocates.

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.