The government of Nigeria plans to ban solar panel imports to drive local production. Local media outlets have reported that the country’s Technology Minister Uche Nnaji revealed the plan during an interview last week.

Nnaji said the move will drive Nigeria’s clean energy transition, adding that the country has the capacity to meet its solar energy demands locally. In March, Nigeria’s Rural Electrification Agency signed an agreement for a 1.2 GW solar assembly plant, while announcing plans for another 1 GW plant.

The minister also said the expansion of local solar manufacturing will see homes and businesses transition to off-grid solutions. “We have lithium in abundance here in Nigeria, so Mr. President is already taking action,” Nnaji said. “We are adding value to our raw materials.”

The Centre for the Promotion of Private Enterprise, a Lagos-based economic consultancy, has released a statement advising against the policy proposal. CEO Muda Yusuf said Centre for the Promotion of Private Enterprise believes Nigeria is not well placed for a ban on solar panel imports.

“Currently, Nigeria has one of the worst energy accesses with a per capita electricity consumption of about 160 kWh, far below the Sub-Sahara Africa average of 350 kWh,” Yusuf explained. “The adoption of solar energy solutions is one of the most impactful government initiatives to tackle this problem and it has gained remarkable traction. A ban on the importation of solar panels in the face of glaringly inadequate domestic production capacity would worsen the country’s energy crisis.”

Yusuf added that the ban would also worsen energy access and put the cost of solar beyond the average Nigerian. Instead, he called for ways to drive affordability, such as introducing fiscal and monetary incentives that support both investors and uptake.

He said that Nnaji’s announcement of a planned import ban is already generating concerns among Nigeria’s renewable energy investing community, households and multilateral organizations.

“It has significantly elevated the policy and political risk of investing in renewable energy solutions in Nigeria,” Yusuf added. “This should be avoided because of the adverse impact on investors’ confidence. Urgent clarification of the government’s position is needed to restore that confidence.”

Nigeria’s cumulative solar capacity stood at 144 MW at the end of 2024, up from 143 MW at the end of 2023, according to the latest figures from the International Renewable Energy Agency (IRENA).