The National Assembly is weighing legislative and policy options to strengthen domestic production of solar panels and renewable energy components, as part of efforts to address energy poverty and lower installation costs nationwide.
Speaking at the Solar Power Nigeria National Stakeholders’ Engagement themed “Accelerating Nigeria’s Clean Energy,” the Deputy Chairman of the House Committee on Environment, Hon. Terseer Ugbor, said parliament is reviewing structural constraints in the renewable energy sector, particularly the limited local manufacturing capacity for solar panels, batteries and related components.
Ugbor stressed that expanding domestic production is critical to reducing the entry cost of solar systems for households, schools, healthcare facilities and small businesses — especially in rural communities where grid access remains limited.
“We are refining policies around the renewable energy sector to support local manufacturers. Advancing local production will help reduce installation costs and broaden access to solar power across Nigeria,” he said.
He acknowledged concerns that promoting local manufacturing could initially result in higher prices compared to imported panels, particularly those produced at scale in countries such as China.
Imported panels, he noted, often benefit from economies of scale and global export networks. However, he argued that structured technology transfer and phased capacity development could position Nigeria to establish viable local manufacturing — or at least assembly plants — capable of creating jobs and retaining value within the domestic economy.
Rather than pursuing immediate full-scale manufacturing, Ugbor advocated starting with local assembly of imported components to stimulate employment, deepen technical expertise and gradually strengthen the renewable energy value chain.
“Nigeria spends billions annually on solar imports. That demand can sustain several local manufacturing and assembly facilities,” he said, adding that producing or assembling components closer to installation sites enhances economic resilience and long-term sustainability.
On calls for an outright ban on solar panel imports, the lawmaker urged caution. While not dismissing the proposal entirely, he emphasized that any trade restriction must be preceded by a realistic assessment of Nigeria’s production capacity.
“A ban is not inherently flawed, but we must ask: do we have sufficient local capacity to meet demand?” he said.
He proposed a phased transition strategy, including calibrated tariffs or import duties, to give emerging domestic manufacturers room to compete without undermining affordability for consumers. According to him, a combination of trade measures, investment incentives and industrial capacity development would enable a gradual shift toward local production.
“We must safeguard affordability while building local industry. A gradual transition supported by smart trade policy is preferable to an abrupt prohibition,” he said.
At the same forum, the Nigeria Country Lead of the Global Strategic Communication Council, Daniel Oladoja, called for data-driven policymaking, cautioning against decisions based solely on sentiment.
“What we set out to do with this report is to introduce evidence into the national conversation. Serious policymaking must be anchored on credible data,” he said.
The report presented at the event found that more than 80 percent of surveyed Nigerians oppose an immediate ban on solar panel imports. While respondents broadly support local manufacturing, they favour incentives and gradual capacity building over sudden trade barriers.
The study also highlighted a cost differential between imported and locally produced systems. According to the findings, locally manufactured solar systems are approximately 16 percent more expensive than imported equivalents. With the average functional household solar system costing about ₦2 million, the price gap translates to nearly ₦250,000 — a significant sum for many families.
“That margin can discourage adoption, particularly for rural households and small enterprises,” Oladoja said.
The Executive Director of the Global Initiative for Food Security and Ecosystem Preservation (GIFSEP), Micheal David, echoed the concern, noting that the debate extends beyond industrial policy.
“This is about access to electricity for healthcare facilities, small businesses and households that rely on solar for basic power needs,” he said.
Stakeholders warned against replicating abrupt policy approaches seen in other sectors, arguing instead for a structured five-to-ten-year transition roadmap that encourages local assembly, incentivizes manufacturers and phases down imports predictably.
Separately, reports that the Presidential Villa has reportedly disconnected from the national grid and adopted an independent mini-grid system have intensified debate over the resilience of Nigeria’s electricity infrastructure.
Energy analysts say the move underscores persistent instability in the grid, which has recorded multiple collapses in 2026.
“If even the seat of government opts for an independent power solution, it highlights the urgency of systemic reform,” a policy analyst said at the Abuja dialogue.
Participants at the forum argued that Nigeria’s pathway to universal electricity access lies in scaling distributed renewable energy — particularly rooftop solar and mini-grids — rather than relying solely on large-scale utility projects.
While acknowledging the long-term objective of boosting local manufacturing, experts stressed that Nigeria’s renewable energy transition must balance industrialization goals with affordability and access.
With electricity now on the concurrent legislative list, stakeholders also urged state governments to take greater initiative in driving independent renewable projects.
As Nigeria confronts recurring grid failures, rising energy demand and ambitious climate commitments, participants concluded that careful sequencing of reforms — rather than abrupt trade restrictions — will determine whether local solar manufacturing becomes a catalyst for economic growth or a constraint on energy access.
