Power

REAN Urges Government to Rethink Solar Import Ban, Calls for an Enabling Business Environment

The move to ban solar imports in Nigeria is a decision that demands careful reconsideration. At the Renewable Energy Association of Nigeria (REAN), we understand the government’s intent—to promote local manufacturing, strengthen the economy, and ensure energy security.

In a statement signed by the President, REAN, Ayo Ademilua, he said these are commendable aspirations, ones we wholeheartedly support. However, creating an enabling environment for businesses to thrive must come before any restrictive measures that could stifle progress and inadvertently hurt the very industry the government seeks to empower.

Solar energy has become a beacon of hope for millions of Nigerians who remain underserved by the national grid. Businesses, communities, and individuals rely on solar solutions to power homes, schools, hospitals, and enterprises. The renewable energy sector has grown significantly, attracting investment and fostering innovation. A ban on solar imports, without first strengthening local production capabilities, risks derailing this progress.

Manufacturing is not built overnight. For local production to scale and compete globally, manufacturers need access to finance, infrastructure, technology, and skilled labour. The current reality presents hurdles—high production costs, supply chain inefficiencies, and limited access to raw materials. Expecting local manufacturers to meet national demand without first addressing these challenges is unrealistic and counterproductive.

Restricting imports too soon could lead to unintended consequences. Prices may rise, making solar solutions less accessible for ordinary Nigerians. Businesses that depend on imported components may struggle to stay afloat, leading to job losses instead of job creation. The momentum the renewable energy sector has gained could slow, discouraging investors who see uncertainty in the policy environment.

Rather than an outright ban, a phased approach that nurtures local manufacturing while keeping the market open to necessary imports would be more effective. Incentivizing local producers through tax breaks, grants, and infrastructure support would build the foundation needed for long-term sustainability. Encouraging partnerships between international companies and Nigerian firms would facilitate knowledge transfer and technology exchange, strengthening the industry from within.

Nigeria’s energy transition is a journey, not a single policy decision. For a thriving renewable energy sector, the government must act as an enabler, not an obstacle. The focus should be on fostering a competitive and sustainable industry—one that supports local businesses without cutting off the lifeline that imports currently provide.

REAN remains committed to working alongside policymakers to develop solutions that balance national interests with industry realities. We urge the government to reconsider the proposed ban and instead prioritize building a resilient, self-sustaining solar industry that truly serves the Nigerian people.

 

Comment here