The Nigerian government’s proposed ban on solar panel imports could significantly impact small businesses and rural areas dependent on solar energy. While the government aims to promote local production, experts warn that a lack of readiness and higher costs may worsen energy poverty. The current solar industry is still in development, and the push for local manufacturing must precede any import restrictions to ensure affordability and accessibility.
In Nigeria, the impending ban on solar panel imports has sparked significant concern, particularly among small business owners who rely on solar energy for their operations. Chidi Okonkwo, a grocery shop owner, expressed that such a ban is analogous to prohibiting umbrellas during the rain, highlighting the critical role solar power plays as a lifeline amid an unreliable national grid that offers limited electricity supply.
The Nigerian government, invoking Presidential Executive Order No. 5, aims to prioritize local content within the science and technology sectors, with Uche Nnaji, the minister of science and technology, asserting that the country has the resources needed for renewable energy. He noted that Nigeria’s abundant lithium will be used for battery production for electric vehicles, indicating a local investment push for renewable infrastructure.
However, experts caution that this strategy mirrors past initiatives, such as the 2019 land border closure that was aimed at curtailing smuggling and ultimately resulted in rising food prices without resolving underlying supply chain issues. Aisha Mohammed from the Lagos-based Center for Development Studies forewarns that the import ban could raise solar panel costs further, making them unaffordable for many Nigerians and deterring investments in solar energy solutions.
Jide Pratts, the country manager of Trade Grid, argues that halting imports preceding the establishment of local production capacity is imprudent. He emphasizes that without meeting substantial local demand through manufacturing incentives, the ban could disrupt the solar market. Chioma Nwachukwu, a project manager for a solar energy nonprofit, added that Nigeria’s local solar manufacturing capacity remains underdeveloped, with costs often exceeding those of imported panels, thereby limiting accessibility for average consumers.
The cost of imported solar systems in Nigeria varies dramatically, ranging from N400,000 for basic setups to N20 million for comprehensive hybrid solutions. These systems cater to a spectrum of energy needs, indicating that while entry-level options exist, high-end configurations offer substantial autonomy and efficiency.
Experts warn that the enforcement of the import ban may lead to price surges of 40-60%, consequently exacerbating energy poverty as families revert to using inefficient generators powered by fossil fuels. Rural communities particularly depend on solar systems for electricity, as these are the primary sources of power where the national grid does not reach.
The potential ban on solar panel imports in Nigeria poses significant risks, particularly for small businesses and rural households that rely on solar energy. Experts stress the importance of building local manufacturing capacity before enforcing such a ban to prevent escalating costs that could push many Nigerians back to less sustainable energy sources. The move raises concerns about energy accessibility and the future viability of solar power in a country facing substantial energy challenges.
Original Source: businessday.ng
