The shift is part of a broader strategy to promote local manufacturing and reduce dependence on foreign-made renewable energy components.

In alignment with this agenda, the REA and the Lagos State Government have signed a Memorandum of Understanding (MoU) aimed at expanding electricity access to underserved rural communities across the state.

Lagos, widely seen as Nigeria’s innovation hub, is expected to lead the transition to domestically produced solar technology. As part of the drive, the REA is working with private sector partners to strengthen local capacity. One such milestone is the establishment of a solar panel assembly plant in Ikotun, which started with a 10-megawatt capacity and has since expanded tenfold to 100 megawatts.

In a further push for clean energy infrastructure, the REA is also finalising a joint development agreement with Green World to build a lithium battery assembly plant in Lagos. The $150 million facility is expected to play a critical role in supporting Nigeria’s long-term renewable energy goals.

This policy direction aligns with broader federal initiatives championed by the Ministry of Science and Technology, which aims to boost local innovation and industrial self-sufficiency. The National Agency for Science and Engineering Infrastructure (NASENI) is already producing solar panels at select facilities, showing promise in meeting future demand.

However, the proposed restriction on solar imports has sparked debate. The Renewable Energy Association of Nigeria (REAN) has warned that a premature ban, without adequate local manufacturing readiness, could slow sectoral growth and compromise energy access for millions.

Solar technology has become a vital alternative for communities across Nigeria lacking reliable national grid access. It powers homes, schools, healthcare centres, and businesses, offering a cleaner and more affordable alternative to diesel generators.

While the government aims to boost local production, stakeholders are calling for a measured approach—one that fosters domestic growth without disrupting access to global technology and supply chains.

As Nigeria navigates its energy transition, the success of its solar industrialisation plans will depend on striking the right balance between policy ambition, industry capacity, and the realities of local production.

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Reports indicate that authorities aim to prohibit imports to boost local manufacturing and promote clean energy adoption nationwide.

Government Justifies Policy with Executive Order No. 5 on Local Content

Minister of Science and Technology, Uche Nnaji, emphasized Nigeria’s capacity to produce solar panels using domestic resources.

The National Agency for Science and Engineering Infrastructure (NASENI) has been identified as central to these local production efforts.

Lithium Processing Cited as Key to Energy Independence

Nnaji highlighted Nigeria’s abundant lithium reserves, stressing ongoing efforts to process them for use in vehicle batteries.

He reassured citizens that the government is committed to adding value to raw materials to strengthen industrial development.

Experts Fear Ban Will Disrupt Solar Energy Startups and Worsen Electricity Shortages

Industry experts argue that restricting imports could harm startups and disrupt existing investments in renewable energy projects nationwide.

The Centre for the Promotion of Private Enterprise (CPPE) strongly advised against the policy, citing severe energy access limitations.

Nigeria Faces Acute Electricity Deficit, Making Solar Crucial

Dr. Muda Yusuf, CPPE Director, noted that Nigeria’s per capita electricity consumption is significantly below the sub-Saharan average.

He emphasized that solar adoption has been instrumental in addressing the country’s persistent power supply challenges.

Ban Could Exacerbate Energy Costs and Limit Accessibility

The CPPE warned that local production cannot meet demand, making import restrictions detrimental to affordable energy access.

Higher costs for solar solutions would place them beyond the financial reach of average Nigerian households and businesses.

CPPE Proposes Policy Adjustments to Support Local Solar Manufacturing

Instead of a ban, the CPPE urged the government to offer incentives to investors in solar panel production locally.

They recommended tax relief, tariff concessions, and low-interest financing to support growth in the renewable energy sector.

Call for Import Duty Reductions on Batteries and Inverters

The CPPE also proposed cutting import duties on batteries, inverters, and wind turbines to improve energy security.

Lowering costs would reduce dependence on the national grid and enhance productivity across various economic sectors nationwide.

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