CPPE opposes proposed ban on Solar Panel imports, warns of energy crisis
By Seun Ibiyemi
The Centre for the Promotion of Private Enterprise (CPPE) has strongly opposed the federal government’s proposed ban on the importation of solar panels, warning that such a move could substantially exacerbate Nigeria’s energy crisis.
This opposition comes in response to a recent statement by the Minister of Science and Technology, Mr. Uche Nnaji, who suggested that the ban would encourage domestic production of solar panels.
However, Dr. Muda Yusuf, the Director and CEO of CPPE, cautioned that Nigeria currently lacks the necessary domestic production capacity to meet the demand for solar panels, making the proposed ban both premature and harmful.
“Nigeria already faces one of the lowest levels of energy access, with a per capita electricity consumption of just 160kWh, far below the Sub-Saharan African average of 350kWh. Solar energy has become a crucial solution to this crisis, seeing increasing adoption in recent years,” Yusuf stated.
The CPPE argued that such a ban would be in direct contradiction to the government’s policy of promoting renewable energy solutions.
Yusuf warned that imposing such a restriction would raise costs, making solar power unaffordable for many households, small businesses, and rural communities that rely on it as a more reliable alternative to unstable grid power.
“The social cost of this policy would be incredibly high. Rather than banning imports, the government should focus on making solar solutions more affordable through incentives and reduced import duties on essential components like batteries, inverters, and wind turbines,” Yusuf added.
While the CPPE acknowledged the importance of fostering local production, it urged the government to adopt a phased transition plan.
The organisation recommended providing tax incentives, tariff concessions, and low-interest financing to boost domestic manufacturing capacity before considering restrictive measures such as an import ban.
Yusuf also criticised the policy’s formulation process, stressing that significant trade decisions should involve the Coordinating Minister of the Economy, the Minister of Industry, Trade and Investment, and the Minister of National Planning and Budget.
He called for extensive consultations with relevant stakeholders to fully assess the economic and social impact before implementing such a policy.
“The government must avoid hasty decisions that could disrupt the renewable energy sector and deter investors. A clear policy direction is essential to restore confidence among investors, businesses, and multilateral organisations,” he concluded.
The CPPE urged the government to reconsider its approach and focus on enhancing local production capacity before imposing any restrictions that could worsen Nigeria’s energy challenges.
