A new report by global consulting firm PricewaterhouseCoopers (PwC) has cautioned the Nigerian government against rushing into a ban on solar panel imports, warning that such a move could harm the country’s clean energy growth and shake investor confidence.
Titled “Rethinking Nigeria’s Proposed Solar Panel Import Policy,” the report highlights the risk of derailing energy access for millions if restrictions are not introduced gradually. PwC acknowledged the government’s desire to promote local manufacturing and industrialisation but stressed the need for a phased approach rather than an outright ban.
The Nigerian government, through the Ministry of Science and Technology, recently proposed curbing solar panel imports, citing concerns over substandard products and the need to conserve foreign exchange. However, PwC believes that enforcing such a ban too quickly could stall progress in the renewable energy sector.
Nigeria imported solar panels worth over N237 billion in the last quarter of 2024, but by early 2025, that figure had dropped by nearly 90 percent. PwC says this dramatic decline highlights how reliant the country still is on imported solar technology due to limited local manufacturing capacity.
The consulting firm advised the government to adopt a three- to five-year transition plan, allowing time for local producers to expand, meet quality standards, and cater to growing demand. It also suggested implementing tools like import quotas, progressive tariffs, and hybrid procurement models to maintain supply while encouraging local production.
Beyond trade policies, the report identified other key gaps. It pointed to underutilised incentives—like import duty waivers and green financing—held back by bureaucracy and poor coordination. PwC recommended the establishment of streamlined application processes, dedicated renewable energy desks in ministries, and industrial zones tailored for clean energy businesses.
On the human capital front, the report stressed the need for government partnerships with educational institutions to build a skilled workforce for solar manufacturing. It also pushed for stricter enforcement of quality standards to prevent substandard products from flooding the market.
Access to finance remains a major barrier for both producers and consumers, PwC added. The firm called on the Central Bank and Bank of Industry to offer long-term financing options and promote flexible models like Pay-As-You-Go to improve off-grid energy access.
Finally, PwC urged inclusive policymaking, involving private companies, development partners, and civil society. Publishing regular progress updates and creating channels for feedback would, the firm said, help track results and refine policies over time.
While supporting Nigeria’s vision for local industry and clean energy, PwC concluded that the success of any import restriction policy depends on careful planning, stakeholder engagement, and a realistic assessment of the country’s current capacity.
“A rushed ban could leave millions without power,” the report warned. “But a well-paced policy could power both homes and economic growth.”
