In a bold move aimed at revitalising the local renewable energy industry and conserving foreign exchange, the Federal Government has reiterated its commitment to halting the importation of photovoltaic (PV) solar panels, which has so far cost the country over N200 billion.
The Managing Director and Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, made this declaration during a roundtable meeting held on Monday in Victoria Island, Lagos, between the REA and the Lagos State Government. The engagement culminated in the signing of a Memorandum of Understanding (MoU) to accelerate rural electrification efforts across communities in Lagos State.
Aliyu, while addressing participants at the forum, emphasised that Nigeria’s continued reliance on imported solar panels is unsustainable, particularly as the country strives toward achieving energy independence and industrial development. He stressed the importance of localising the production of solar energy components, especially as solar energy continues to gain traction as a reliable alternative in underserved and off-grid areas.
He noted, “Nigeria has spent over N200 billion on importing solar panels. While we understand the necessity of this importation in the short term, our long-term objective is to change this narrative by developing a robust local manufacturing sector for renewable energy equipment. Lagos, being Nigeria’s centre of excellence, is strategically positioned to lead this initiative.”
In a move to support this vision, the REA has facilitated the expansion of a solar panel assembly plant in the Ikotun area of Lagos. Originally designed with a production capacity of 10 megawatts, the plant has now scaled operations by an additional 100 megawatts in collaboration with the agency. This significant development marks a step forward in reducing Nigeria’s dependence on foreign-made renewable energy products.
Aliyu also disclosed that the REA is in the process of finalising a joint development agreement with Green World for the establishment of a lithium battery assembly facility in Lagos. The proposed plant represents a $150 million investment and will further bolster Nigeria’s clean energy infrastructure, creating jobs and enhancing the country’s energy storage capabilities.
The Federal Government’s policy direction received further backing from the Minister of Science and Technology, Uche Nnaji, who recently reaffirmed the administration’s support for local manufacturers. Nnaji highlighted the capacity of the National Agency for Science and Engineering Infrastructure (NASENI) to produce solar panels, noting that local facilities are already operational and supplying to the market.
“With the support of Presidential Executive Order No. 5, we intend to limit the importation of solar panels significantly and channel our resources toward supporting indigenous production. NASENI has commenced production, and we are seeing other private sector players stepping into the space. It’s time we backed our local industries to grow and thrive,” the minister stated.
However, the proposed restrictions on solar panel imports have not been without resistance. The Renewable Energy Association of Nigeria (REAN) expressed concerns that an outright ban, without a corresponding scale-up of local production capabilities, could disrupt access to clean energy solutions for millions of Nigerians.
“Solar energy has become a vital lifeline for communities, small businesses, schools, and health centres across the country, many of which remain unconnected to the national grid,” REAN warned. “The sector has attracted significant investments and fostered innovation. Curtailing imports prematurely could stall the momentum we have built over the years.”
As the Federal Government moves ahead with its import-substitution strategy, the challenge will lie in balancing the need to grow local capacity with ensuring that solar technologies remain accessible and affordable for end-users. For now, all eyes are on Lagos as it gears up to lead Nigeria’s transition to a domestically powered clean energy future.
