FG Pushes to Stop N200bn Solar Panel Imports

The Federal Government has restated its plan to stop the importation of photovoltaic (PV) solar panels, which has cost Nigeria about N200 billion so far.

This was revealed by the Managing Director and CEO of the Rural Electrification Agency (REA), Abba Aliyu, during a roundtable meeting in Victoria Island between the REA and the Lagos State Government.

The meeting followed the signing of a Memorandum of Understanding (MoU) between the REA and Lagos State to bring electricity to rural communities in the state.

Aliyu said the goal is to shift from importing solar equipment to producing them locally.

He said, “Over N200bn has been spent on the importation of PV panels into the country. While there is a need for that importation, one of the key things our agency is striving for is domesticating the manufacturing of this renewable equipment. Lagos, being the centre of excellence, is going to lead a total war in that domestication.”

He added that some progress has already been made, including the setup of a solar panel manufacturing plant in Ikotun, Lagos.

“There was a PV panel manufacturing assembly plant in Ikotun, Lagos. They started with 10 megawatts, but with the collaboration with REA, they have moved and increased their capacity to an additional 100 megawatts,” he said.

Aliyu also shared that the REA is working on a joint development agreement with Green World for a lithium battery assembly plant in Lagos, a project valued at $150 million.

Minister of Science and Technology, Uche Nnaji, also confirmed the government’s support for local solar panel production while moving to limit imports.

“With NASENI here, you know that we have panels. It has a factory that has started producing solar panels, and other private individuals are also producing solar panels as we speak. So, all we need to do is, even through science and technology, through our Presidential Executive Order No. 5, we will stop all these importations of solar panels. We will support our local industries to grow,” he said.

However, the Renewable Energy Association of Nigeria (REAN) expressed concern, saying solar energy is crucial for many Nigerians who don’t have access to the national grid.

“Businesses, communities, and individuals rely on solar solutions to power homes, schools, hospitals, and enterprises. The renewable energy sector has grown significantly, attracting investment and fostering innovation. A ban on solar imports, without first strengthening local production capabilities, risks derailing this progress,” the REAN stated.