Specialists warn towards FG’s proposed ban on photo voltaic panel imports, urge warning over native manufacturing capability
Power and commerce consultants have expressed blended reactions to the Federal Authorities’s proposed ban on the importation of photo voltaic panels into Nigeria, elevating issues about its potential influence on the nation’s renewable power drive, job creation, and native manufacturing capabilities.
The proposed coverage shift, reportedly geared toward boosting native production and lowering dependence on foreign-made photo voltaic elements, is a part of a broader push by the President Bola Tinubu administration to advertise industrialisation, preserve overseas change, and assist home enterprises in step with the renewed hope agenda.
The Minister of Science and Know-how, Uche Nnaji, had at a current occasion in Abuja introduced plans by the federal authorities to cease the importation of photo voltaic panels as a part of efforts to spice up native production and drive Nigeria’s clear power transition.
He stated the transfer aligns with Presidential Govt Order No. 5, which seeks to advertise native content material in science, engineering, and know-how.
Nevertheless, stakeholders warn that an outright ban, if carried out swiftly with out enough native capability in place, might disrupt ongoing photo voltaic power tasks, drive up set up prices, and decelerate Nigeria’s transition to wash power.
What Specialists Are Saying
Dr. Yusuf Adedayo, a renewable power specialist on the College of Lagos, advised Nairametrics that whereas encouraging native production is a noble aim, banning imports at this stage could possibly be untimely.
“We should first assess if Nigerian producers have the capability to supply high-quality photo voltaic panels at scale. If we impose a ban and not using a sturdy native provide chain, we threat stalling renewable power entry in rural and underserved areas,” he stated.
Adedayo added that the majority native producers nonetheless depend on imported elements for meeting, and any disruption within the international provide chain might negatively influence production timelines.
- The Chief Govt Officer (CEO) of the Centre for the Promotion of Personal Enterprises (CPPE), Dr Muda Yusuf, on his half warned that Nigeria’s power disaster would worsen if the federal government goes forward with its plan to ban the importation of photo voltaic panels.
“It is very important make clear that Govt Order 5 is a procurement coverage which directs Ministries, Departments and Businesses (MDAs) to present choice to Nigerian service suppliers of their procurement course of for items and companies.
“It’s clearly completely different from a commerce coverage measure which has wider {economic} implications and requires a extra rigorous research earlier than coverage pronouncements are made,” he stated in his response to the announcement despatched to Nairametrics.
- Equally, power advisor and CEO of GreenSource Energy primarily based in Nasarawa state, Engr. Hadiza Musa, emphasised {that a} gradual strategy via tariffs, incentives, and a well-structured transition plan can be more practical than an outright ban.
“A sudden ban might spike the price of photo voltaic installations by up drastically. For a rustic the place over 85 million individuals are nonetheless with out electrical energy, we are able to’t afford to make photo voltaic power costlier or much less accessible,” she warned.
Musa urged the Federal Authorities to focus as an alternative on constructing a complete ecosystem that helps native producers via tax reliefs, entry to finance, infrastructure, and partnerships with worldwide photo voltaic know-how corporations.
Coverage Uncertainty Looms
Whereas the federal government has not launched a proper coverage doc outlining the proposed ban, insiders on the Ministry of Business, Commerce, and Funding verify that consultations are ongoing.
A senior official on the Ministry, who spoke anonymously, advised Nairametrics that the proposed ban continues to be “on the coverage design stage” and can possible include exemptions for crucial sectors and challenge builders who meet particular localization benchmarks.
“We’re not simply slamming a ban. We’re growing a roadmap to extend native content material in photo voltaic power deployment. However sure, we need to transfer away from extreme import dependence,” the official stated.
One other official stated whereas it was the obligation of the Ministry to draft the coverage doc, it was as much as the Federal Govt Council (FEC) to take the ultimate resolution on the matter. In keeping with him, that will likely be “a matter whether or not the President needs that to undergo.”
What You Ought to Know
- Nigeria at present imports most of its photo voltaic panel elements from China, India, and Germany.
- The renewable power sector in Nigeria contributes considerably to off-grid electrification, notably in rural communities the place grid enlargement is expensive or impractical.
- The nation goals to attain 30% renewable power technology by 2030 below its Power Transition Plan (ETP).
