The Federal Government has reaffirmed plans to end the importation of photovoltaic solar panels, citing a N200bn outflow.
The Managing Director and Chief Executive Officer of the Rural Electrification Agency, Abba Aliyu, made this known during a roundtable meeting with the Lagos State Government in Victoria Island. The session was part of efforts to formalize a Memorandum of Understanding between the REA and the Lagos State Government aimed at electrifying rural communities across the state.
According to Aliyu, efforts are underway to change the narrative and domesticate the manufacturing of renewable energy equipment in the country, with Lagos set to lead the charge in local manufacturing. He noted that the agency has already facilitated the establishment of photovoltaic (PV) panel manufacturing plants in Lagos, citing the existence of an assembly plant in Ikotun as an example.
According to Aliyu, “They started with 10 megawatts, but with the collaboration with REA, they have moved and increased their capacity to an additional 100 megawatts.”
The REA boss also revealed that the agency is in the process of signing a joint development agreement with Green World for the establishment of a lithium battery assembly plant in Lagos, an investment valued at $150m.
Recently, the Minister of Science and Technology, Uche Nnaji, expressed the Federal Government’s willingness to support local manufacturing of solar panels while curbing imports. He emphasized that Nigeria could produce solar panels through the National Agency for Science and Engineering Infrastructure.
“With NASENI here, you know that we have panels. It has a factory that has started producing solar panels, and other private individuals are also producing solar panels as we speak. So, all we need to do is, even though science and technology, through our Presidential Executive Order No. 5, we will stop all these importations of solar panels. We will support our local industries to grow,” Nnaji stated.
However, the proposal to ban solar panel imports has drawn criticism from the Renewable Energy Association of Nigeria (REAN). While acknowledging the importance of local manufacturing, the group cautioned that such a move could disrupt the sector’s momentum, if not properly managed.
They emphasized that solar energy has become a beacon of hope for millions of Nigerians who remain underserved by the national grid. Businesses, communities, and households now depend on solar power to sustain essential services. REAN warned that without first strengthening local production capacity, a ban could undermine the progress already made in attracting investment and driving innovation in the renewable energy space.