Lawmaker Backs Local Solar Manufacturing, Caution Against Immediate Import Ban

By: Michael Mike

The National Assembly is considering a range of legislative and policy measures to strengthen local production of solar panels and renewable energy components in Nigeria, as part of broader efforts to tackle energy poverty and reduce installation costs nationwide.

The Deputy Chairman, House Committee on Environment, House of Representatives, Hon. Terseer Ugbor speaking at the Solar Power Nigeria’s National Stakeholders Engagement with theme: “Accelerating Nigeria’s Clean Energy”, said parliament is reviewing key issues affecting the sector, particularly the development of local manufacturing capacity for solar panels, batteries, and other renewable energy components.

According to him, expanding domestic production is critical to lowering the entry cost of solar energy systems for homes, schools, hospitals, and businesses—especially in rural communities where access to electricity remains limited.

“We are looking at how to polish policies around the renewable energy sector and support local manufacturers. If we can advance local production, we can reduce installation costs and expand access to solar power across Nigeria,” he said.

The lawmaker acknowledged concerns that encouraging local production could initially lead to higher prices compared to imported solar panels, particularly those produced at large scale in Asia.

“It is true that imported panels can sometimes be cheaper because countries like China produce at massive scale and export globally,” he noted.

However, he argued that through structured technology transfer and gradual capacity building, Nigeria can develop local manufacturing or at least assembly plants that create jobs and add value within the country.

Rather than immediate full-scale manufacturing, he suggested beginning with local assembly of components, which would stimulate employment, build technical expertise, and strengthen the country’s renewable energy ecosystem.

“Nigeria is already spending billions annually on solar imports. That level of demand is enough to sustain several local manufacturing and assembly plants,” he said.

He stressed that local production would not only reduce long-term dependence on foreign suppliers but also promote economic growth and sector sustainability.

“It is always better to manufacture or assemble components close to where they are installed. That strengthens the economy and ensures long-term sustainability.”

On calls by some stakeholders for a complete ban on solar panel imports, the lawmaker urged caution.

While he did not dismiss the idea outright, he emphasized that any ban must be preceded by a clear assessment of Nigeria’s readiness and production capacity.

“A ban is not entirely a bad concept, but it must be considered within the context of our preparedness. Do we have enough local capacity to meet demand? That is the key question,” he said.

He suggested that instead of an outright prohibition, Nigeria could adopt a phased transition strategy—such as imposing tariffs or import duties on foreign solar products—to give local manufacturers room to compete.

Countries with established large-scale production capabilities, he noted, can produce millions of panels at significantly lower costs, making it difficult for emerging Nigerian firms to compete without policy support.

According to him, a phased approach combining trade measures, investment incentives, and capacity development would allow Nigeria to gradually shift toward local production without jeopardizing affordability for rural communities.

“We must protect affordability while building local industry. A gradual transition, supported by smart trade policies and incentives, is better than an abrupt ban,” he said.

The lawmaker said that strengthening Nigeria’s solar manufacturing base would drive job creation, promote technology transfer, and enhance energy security over the long term.

“We cannot continue to depend entirely on foreign manufacturers. Building local capacity is essential if we want sustainable and affordable renewable energy across Nigeria.”

The Nigeria Country Lead, Global Strategic Communication Council, Daniel Oladoja pushed for evidence-based energy reforms have cautioned against an immediate ban on solar panel imports, arguing that policy decisions must be guided by data rather than sentiment.

He explained that the aim of the study was to introduce credible data into the national debate over local manufacturing and import restrictions.

“What we set out to do with this report is to bring evidence into the conversation,” a policy advocate said. “Anyone can say a ban is good or a ban is bad, but that is sentiment. When it comes to serious policymaking, you must rely on data.”

One of the report’s key findings is that more than 80 percent of Nigerians surveyed do not support a ban on solar panel imports.

“If government says it listens to the people, then it must pay attention to what the people are saying,” the advocate noted.

The report argues that while energy sovereignty and industrialization are legitimate national goals, policymakers must weigh these ambitions against affordability and access — especially in a country battling widespread energy poverty.

He said beyond public sentiment, the report highlights a significant cost disparity between imported solar systems and locally produced alternatives.

According to him, locally manufactured systems are approximately 16 percent more expensive than imported equivalents.

With the average functional household solar system costing around ₦2 million, that 16 percent difference translates to nearly ₦250,000 — a substantial amount for most Nigerian families.

“That margin is enough to discourage adoption,” the advocate explained. “When you’re talking about rural households, small businesses, or schools trying to install solar, ₦250,000 is not a minor difference.”

He said the report stresses that the debate over banning solar imports is not purely economic but also social, adding that a sudden restriction could slow the spread of renewable energy, particularly in underserved rural areas where solar systems are often the most viable electricity option.

“This is not just about industry. It’s about access to power. It’s about livelihoods. It’s about small businesses and healthcare facilities that depend on affordable solar solutions.”

Rather than an abrupt prohibition, stakeholders are recommending a structured five-to-ten-year transition plan.

They warned against repeating policy approaches seen in other sectors, where sudden border closures or bans disrupted markets without adequate local capacity in place.

“Don’t just wake up one morning and shut the borders,” the advocate said. “Have a clear strategic roadmap — build local capacity gradually, encourage assembly, incentivize manufacturers, and then phase down imports in a predictable way.”

Such a phased strategy, they argued, would protect affordability while allowing Nigeria to strengthen domestic production capacity over time.

The overarching message from the report is that policymaking must balance industrial growth with consumer welfare, guided by evidence, cost analysis, and public opinion.

“We are not opposing industrialization. We are saying: let’s do it strategically. Let’s use the numbers. Let’s use public sentiment. Let’s plan properly.”

As Nigeria pushes toward energy security and renewable expansion, the report concludes that careful sequencing — not abrupt restrictions — will determine whether local solar manufacturing becomes a catalyst for growth or a barrier to access.

On his part, the Executive Director, Global Initiative for Food Swcurity and Ecosystem Preservation (GIFSEP), Micheal David said locally manufactured solar systems currently cost about 16 percent more than imported alternatives.

He said: “With an average household solar system costing roughly ₦2 million, that 16 percent difference can mean about ₦250,000 extra,” said an energy market analyst. “For rural households, that difference is enough to delay adoption.”

He noted that: “This is not just an industrial discussion. It is about healthcare facilities, small businesses, and families who depend on solar just to keep basic lights on.”

Stakeholders argued that Nigeria’s fastest path to universal electricity access lies in scaling up distributed renewable energy rather than relying exclusively on large utility-scale solar projects.

“The future for Nigeria is decentralized energy,” said a renewable energy consultant. “Mini-grids and rooftop solar are more realistic for rural electrification than trying to reach extremely high utility solar targets within a short period.”

Lawmaker Backs Local Solar Manufacturing, Caution Against Immediate Import Ban