BY CHIKA OKEKE, Abuja
The Global Initiative for Food Security and Ecosystem Preservation (GIFSEP) has rejected an outright ban on importation of solar energy, adding that it could increase solar equipment prices by adding N80,000 to the hardware costs of a household installation requiring four 400-watt solar panels.
Executive Director of GIFSEP, Dr Michael Terungwa disclosed this in Abuja, at a Solar Policy Roundtable, where stakeholders brainstormed on strategies for strengthening Nigeria’s solar industry while protecting consumers and expanding electricity access.
In its policy brief titled: "Localisation of Solar Panels and Accessories Production in Nigeria, GIFSEP recommended a three-to-five-year phased transition to domestic manufacturing, with regulated imports maintained until local producers could adequately meet national demand.
He estimated Nigeria’s operational solar module assembly capacity at about 350 megawatts, adding that domestic manufacturers still depend heavily on imported solar cells, specialised glass and other essential components.
GIFSEP noted that 80 percent of industry experts surveyed supported a phased transition, while only 1.5 per cent considered Nigeria ready for an immediate ban, just as it indicated that 70.4 per cent of respondents feared a significant reduction in electricity access under an immediate-ban scenario.
Terungwa, who is also the Co-convener of the Solar Power Nigeria Campaign, warned that restricting imports before domestic manufacturers could meet demand might create supply shortages, disrupt solar installation businesses and encourage the circulation of counterfeit or substandard panels.
He identified skills development, local manufacturing and assembly, and quality assurance as three priority areas requiring the government attention, seeking national certification pathway for solar technicians, alongside practical training and retraining programmes for generator technicians transitioning into the renewable energy sector.
GIFSEP recommended that certified personnel be engaged in publicly funded solar installations to improve safety, service quality and employment opportunities, proposing long-term, low-interest loans and credit guarantees to help manufacturers expand production, acquire equipment and improve their competitiveness.
Terungwa suggested tax holidays of three to five years for eligible manufacturers, alongside reduced or zero import duties on selected raw materials and manufacturing equipment, proposing between 10 to 20 percent tariff on finished imported solar panels to encourage gradual localisation framework, while protecting consumer affordability and market competitiveness.
GIFSEP suggested local-content requirements of between 30 and 50 per cent for government-funded electrification projects, subject to domestic manufacturers meeting agreed standards for quality, affordability and supply reliability.
Nigeria imported approximately 2.9 million solar panels in 2025, valued at about ₦435.52 billion, according to foreign trade data from the National Bureau of Statistics (NBS), though the country’s growing solar market presented opportunities to create jobs, develop technical expertise and strengthen domestic manufacturing.
Terungwa cited Nigeria’s position as Africa’s second-largest importer of solar panels, describing the figures as evidence of growing demand and the potential for domestic manufacturers to expand their operations.
He cautioned that market growth alone would not guarantee industrial development unless the country established policies that encouraged local production without compromising affordability, product quality and consumer protection.
Terungwa praised the Minister of Innovation, Science and Technology, Dr Kingsley Udeh, for his position that Nigeria should not prohibit solar panel imports before developing adequate domestic manufacturing capacity.
The report identified inadequate financing, limited technical capacity, unreliable industrial electricity supply, insufficient processing infrastructure and inconsistent quality-control systems as major obstacles to developing a competitive domestic solar industry.
Given that Nigeria possesses raw materials relevant to solar equipment production, including silica sand, iron ore, aluminium, lithium and copper, the report hinted that gaps in processing infrastructure constrain their effective use in local manufacturing.
Terungwa identified opportunities to expand domestic production of batteries, mounting structures, distribution boxes and electrical cables, while adding that advanced inverters and charge controllers remain heavily dependent on imported technology.
He sought predictable government policies, stronger regulatory coordination, improved testing facilities and compliance with relevant international standards to prevent substandard products from entering the market.
The Special Assistant to the President on Climate Change Matters, Comrade Yussuf Kelani noted that Nigeria must balance the development of a competitive domestic solar industry with the need to ensure affordable and reliable electricity for households, small businesses and underserved communities.
He pointed out that millions of Nigerians continued to face electricity access and reliability challenges, making renewable energy essential to the country’s economic development, climate ambitions and national resilience.
Kelani informed that affordability must remain central to energy policy, particularly as Nigeria prepares for changes in electricity pricing and subsidy arrangements from 2027.
He identified the Electricity Act 2023, the National Renewable Energy and Energy Efficiency Policy, the Energy Transition Plan and Nigeria’s Nationally Determined Contribution 3.0 as important frameworks for advancing renewable energy.
The Director of the Centre for Renewable Energy and Sustainability Transitions at Bayero University, Kano, Professor Nasir Fagge requested broader stakeholder consultation before the Federal Government implements restrictions on solar panel imports.
Fagge tasked manufacturers, investors, energy experts and research institutions to contribute to policy development, ensuring that the government decisions reflected industry realities and Nigeria’s manufacturing capacity.
He harped on the importance of developing domestic resources and technical expertise, identifying the country’s mineral resources and renewable energy potential as opportunities for industrial development, job creation and the production of solar components and lithium-ion batteries.
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