The Federal Government has reiterated its commitment to phasing out the importation of photovoltaic (PV) solar panels into Nigeria, revealing that over ₦200 billion has been spent on these imports to date.
This move is part of a broader strategy to boost local manufacturing and reduce reliance on foreign renewable energy equipment.
Speaking at a stakeholder roundtable held in Victoria Island, Lagos, the Managing Director and Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, stressed the urgent need to localize the production of renewable energy components. The event also marked the signing of a Memorandum of Understanding (MoU) between the REA and the Lagos State Government aimed at improving electrification in underserved rural areas across the state.
Aliyu acknowledged that while imports have played a critical role in advancing Nigeria’s renewable energy sector, they are unsustainable in the long run. He emphasized that domestic production is key to reducing costs, achieving energy independence, creating jobs, and fostering a robust clean energy industry.
“Nigeria has spent over ₦200 billion importing photovoltaic solar panels. While imports have supported the sector thus far, our goal is to transition to full-scale local manufacturing. Lagos, as a hub of innovation and excellence, is well-positioned to lead this transition,” Aliyu said.
To support this shift, he revealed that a PV panel assembly plant in Ikotun, Lagos, initially operating at a 10-megawatt capacity, has now scaled up to 100 megawatts with REA’s support. He also announced plans for a major investment in battery technology.
“We are in the final stages of a $150 million joint development agreement with Green World to establish a lithium battery assembly plant in Lagos. This will not only complement solar panel production but also strengthen the renewable energy value chain,” he added.
In alignment with these initiatives, the Minister of Innovation, Science and Technology, Uche Nnaji, recently reaffirmed the Federal Government’s support for local solar panel manufacturers. He highlighted the efforts of the National Agency for Science and Engineering Infrastructure (NASENI), which has already begun domestic production of solar panels.
“With NASENI and other private players producing locally, we have the capacity. Under Presidential Executive Order No. 5, we plan to curtail solar panel imports and fully support indigenous manufacturers,” Nnaji stated.
However, not all stakeholders support an outright import ban. The Renewable Energy Association of Nigeria (REAN) cautioned against implementing such a policy without first ensuring the local manufacturing sector is adequately equipped to meet demand.
“Solar energy remains a vital lifeline for millions of Nigerians lacking reliable grid access. It powers businesses, hospitals, schools, and homes. While local production is important, banning imports prematurely could stall progress, limit access, and hinder innovation,” REAN warned.