In a recent statement, the association emphasized the need for a supportive environment for the burgeoning renewable energy sector before implementing measures that could inadvertently hinder its growth.
The discussion gained momentum following remarks by the Minister of Science and Technology, Uche Nnaji, who indicated the government's inclination to restrict solar panel imports to foster domestic manufacturing capabilities. Minister Nnaji pointed to the National Agency for Science and Engineering Infrastructure (NASENI) as evidence of Nigeria's potential in this area. "With NASENI here... It has a factory that has started producing solar panels, and other private individuals are also producing solar panels," he stated, adding, "So, all we need to do is... through our Presidential Executive Order No. 5, we will stop all these importations of solar panels. We will support our local industries to grow."
While REAN supports the government's aspirations to bolster local industry, enhance economic self-sufficiency, and secure the nation's energy future, the association cautions against premature restrictive actions. Mr. Ayo Ademilua, President of REAN, articulated this position clearly in the association's statement. "The government has commendable aspirations which REAN wholeheartedly supports," he acknowledged. "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."
Ademilua elaborated on the critical role solar energy currently plays, particularly for vast segments of the Nigerian population lacking reliable access to the national electricity grid. "Solar energy has become a beacon of hope for millions of Nigerians," he noted. "Businesses, communities, and individuals increasingly rely on solar solutions to power homes, illuminate schools, run hospitals, and sustain enterprises, driving grassroots economic activity." The sector's notable growth has attracted significant investment and spurred innovation, progress which REAN fears could be jeopardized.
The association highlighted the practical challenges facing domestic solar panel manufacturing. "Manufacturing capacity is not built overnight," Ademilua warned. He stressed that scaling local production to meet national demand and compete effectively requires substantial support systems that are not yet fully in place. Key hurdles include accessing affordable finance for capital-intensive manufacturing plants, developing robust infrastructure (including reliable power for the factories themselves), acquiring advanced technology, cultivating a skilled workforce, managing high production costs, overcoming supply chain inefficiencies, and securing consistent access to necessary raw materials. "Expecting local manufacturers to instantly meet national demand without systematically addressing these fundamental challenges is unrealistic and potentially counterproductive," he argued.
REAN outlined several potential negative consequences of imposing an import ban too hastily. A primary concern is the likelihood of price increases for solar components and systems due to reduced supply, potentially making clean energy solutions less accessible for average Nigerians and small businesses precisely when they are needed most. Furthermore, existing businesses within the solar value chain that depend on imported components for installation, maintenance, and customized solutions might struggle to operate, potentially leading to business closures and job losses rather than the intended job creation.
The association also fears that such a policy could dampen the momentum the renewable energy sector has painstakingly built, creating policy uncertainty that might discourage further domestic and international investment.
Instead of an immediate, outright ban, REAN advocates for a more measured, phased approach. Ademilua suggested, "A phased approach that nurtures local manufacturing while keeping the market open to necessary imports would be more effective." This strategy would involve actively incentivizing local producers through targeted measures like tax breaks, investment grants, and dedicated infrastructure support. Concurrently, fostering partnerships between established international solar companies and Nigerian firms could accelerate knowledge transfer and technology exchange, strengthening the domestic industry from within.
"Nigeria’s energy transition is a complex journey, not a destination reached by a single policy decision," Ademilua maintained. He emphasized that for a truly thriving renewable energy sector, the government's role should be that of an enabler, fostering competition and sustainability, rather than erecting barriers. "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 concluded by expressing its commitment to collaborating with policymakers to find solutions that carefully balance national economic interests with the operational realities of the renewable energy industry, ultimately urging the government to prioritize building a resilient and self-sustaining solar sector that serves the long-term interests of the Nigerian people.