On March 26, 2025, the Nigerian government, through the Minister of State for Technology, Uche Nnaji, announced plans to stop the importation of solar panels. The government claimed that the move to ban solar panel importation was to encourage local production of solar panels. A blanket ban on solar panel importation threatens small and medium-sized enterprises and the broader economy. Rather than implementing a ban, the federal government should encourage joint ventures with foreign experts, reduce tariffs on solar panel importation, and adopt a phased approach to import reduction. These steps would promote local production and lower the cost of solar energy in Nigeria.
Nigeria’s unstable power supply has made solar energy a necessity. Imposing a ban on solar panel importation could lead to scarcity. This scarcity will cause a spike in price, pushing solar energy beyond the reach of average Nigerian business owners. A ban on solar panel importation will also increase the cost of doing business and the cost of living, pushing households and businesses back to fuel-powered generators.
Instead, the government should promote partnerships between local businesses and well-established foreign manufacturers of solar panels. These partnerships will facilitate the transfer of technical knowledge and provide the experience needed for Nigeria to build a robust local solar energy sector. Nigeria’s solar energy sector is still in its infancy, and local production cannot meet nationwide demands.
Similar to the Nigerian government’s 2015 ban on rice importation, banning solar panel importation to boost local production could hike prices. The government banned rice importation through land borders and imposed a 70 percent tariff on imports via sea. While the ban increased local output, it also caused rice prices to rise by over 200 percent within seven years.
To avoid a surge in the price of solar panels, the Nigerian government must consider partnership instead of restrictions. Partnering with foreign manufacturers with expertise in solar panel production is a more proactive approach. For example, through joint ventures, technology transfer agreements, and the creation of local assembly plants, Nigeria can build local capacity for solar panel production while maintaining quality and affordability. This measure will support the government’s goal of growing local production while ensuring continued access to affordable solar solutions.
Nigeria can learn from South Africa’s strategy of partnering with foreign manufacturers to grow local expertise. For example, through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), South Africa partnered with Scatec Solar from Norway. The partnership supported the development, operation, and expansion of solar farms. While South Africa still imports most solar panels, local expertise has advanced, especially in installation, maintenance, and project development.
The Nigerian government should also consider reducing tariffs on imported solar panels. The reduction in tariffs will reduce production costs and attract local investors. High import duties on essential solar components such as panels, inverters, and batteries are barriers for local entrepreneurs and manufacturers seeking to enter the market. Lowering or eliminating these tariffs would make it more feasible for local businesses to set up assembly plants. Setting up local solar assembly plants would in turn create jobs, drive innovation, and foster a competitive solar energy market.
Egypt has implemented this strategy effectively. The Egyptian government reduced import duties and offered tax incentives to support local solar projects. Egypt’s policy changes attracted significant foreign and local investment, led to the construction of over 30 solar power plants, and helped build local capacity in solar installation and maintenance. Nigeria can learn from Egypt’s strategy and create a more investment-friendly environment to boost the solar energy sector.
A more strategic move by the Nigerian government would be to adopt a phased approach instead of an outright ban. A gradual reduction in imports would give the local industry time to grow. During this transition, the government should offer incentives for local manufacturers, invest in research and development, and ensure that locally made panels meet international quality standards.
With research and incentives, Nigeria can avoid sudden market disruptions and ensure continued access to clean energy. Solar energy is crucial for Nigeria’s economy. For some Nigerians, solar energy is the only reliable source of power. A hasty ban on solar panels importation is premature and counterproductive. Instead of making it harder for businesses to source solar panels, the government should focus on building capacity, encouraging innovation, and creating an environment supporting local production and energy accessibility.
Jumoke Olasunkanmi is a writing fellow at African Liberty.
Article first appeared on BusinessDay.
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