PwC: Rethinking Nigeria’s proposed solar panel import policy
Balancing industrialisation and energy access.
By PwC
Nigeria faces severe energy poverty, with over 85 million people lacking access to electricity. To bridge this gap, especially in underserved communities, renewable energy solutions have become increasingly vital, with solar technologies such as solar home systems (SHS) and mini-grids playing a significant role among other alternatives.
In 2023 alone, Nigeria imported over 4 million solar panels, valued at more than $200 million. This reliance on imported technology reflects Nigeira’s urgent energy needs and the absence of an adequate local manufacturing capacity. As a result, the country is also exposed to foreign exchange pressures, supply chain disruptions, and lost job creation opportunities.
In response, the Federal Government through the Ministry of Science and Technology, proposed a solar panel imports restriction policy. The proposed policy is anchored on the government’s objective to localise solar panel production, conserve foreign exchange, and stimulate job creation within Nigeria’s manufacturing sector. By reducing reliance on imported solar panels, the policy aims to enhance domestic capacity and ensure greater control over the energy transition process.
Furthermore, the government intends to use the policy as a catalyst for developing a robust solar manufacturing ecosystem. This includes incentivising the establishment of local assembly plants, attracting foreign direct investment and technology transfer, and fostering backward linkages within the supply chain, from raw materials to distribution. The policy is expected to create thousands of skilled and semi-skilled jobs, reduce project costs over time through economies of scale, and improve the sustainability of Nigeria’s clean energy efforts. By fostering local industry, the government aspires to meet growing energy demands and stimulate long-term economic growth.
In 2023 alone, Nigeria imported over 4 million solar panels, valued at more than $200 million.
Contact us
Abimbola Banjo
Partner & Corporate Finance Leader, PwC Nigeria
Tel: +234 1 271 1700