The Center for the Promotion of Private Enterprise (CPPE) warned the federal government against the prohibition of the ban on the import of solar panelsargue That such a decision could worsen the Nigeria energy crisis, increase the cost of renewable energies and dissuade investments in the sector.
The warning follows a statement by the Minister of Innovation, Science and Technology, Uche Nnaji, in which he announced the government’s intention to stop the import of solar panels as part of an effort to promote local manufacturing and lead the country’s transition to renewable energies. The decision is aligned with a presidential directive aimed at prioritizing Local content in science, engineering and technology.
Speaking when launching the nev T6 electric buses in Abuja last week, Nnaji stressed that Nigeria has the ability of Produce locally solar panels, quoting the National Agency for Scientific and Engineering Infrastructure (NASENI) as an example of an institution already engaged in local production.
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Nnaji has planned that, as national manufacturing increases, more households and Nigerian institutions would pass to out -of -network solar energy solutions, ultimately improving energy security. He also pointed out that Nigeria has many lithium reserves, which, according to him, are transformed into batteries for electric vehicles and the storage of renewable energies.
Beyond the production of solar panels, the Minister underlined the government’s investment in mini-clrile solutions to feed Hospitals, schools and businesses. He reassured the public that budget allowances have already been made, the implementation which should be visible in the three to four months.
However, while the government’s ambitions to stimulate local development of clean energy seem daring and progressive, industry experts and stakeholders have expressed their concern that the ban on imports at this stage could do more harm than good, given the current energy challenges of Nigeria and the country’s limited capacity for the production of large -scale solar panels.
Cppe Strong opposition to the proposed ban
Dr. Muda Yusuf, director general of the CPPE, was one of the most vocal criticisms of the proposed ban. He warned that Nigeria is not yet ready for such a drastic change in policy, stressing that the country has one of the lowest electricity consumption rates. He pointed out that the consumption of electricity per capita of Nigeria is only 160 kWh, significantly lower than the Sub -Saharan Africa average of 350 kWh.
Yusuf said:: “This would worsen the problem of access to energy because it would make the cost of prohibitive solar energy solutions, put Beyond the Middle Nigerian. »»
He argued that the adoption of Solar Energy Solutions has gained remarkable traction in recent years and that a sudden importance of imports would seriously disrupt the sector, which makes solar energy unaffordable for millions of Nigerians. He described this decision as a contradiction of government policy to extend access to renewable energies, which was a key strategy to combat the energy crisis, in particular for households, small businesses, rural communities and government institutions.
Beyond the impact on affordability, Yusuf stressed that the economic consequences of a brutal prohibition would be disastrous. He explained that solar panels and related equipment are crucial for companies that depend on off -network solutions operateEspecially in the middle of the increase in the cost of diesel and the supply of unreliable electricity. The restriction of imports would increase the cost of solar installations, discouraging the adoption of clean energy at a time When Nigeria desperately needs alternatives to fossil fuel energy sources.
Risks of investment and market uncertainty
The concerns of the CPPE extend beyond access to energy. The organization warned that the announcement of the proposed ban has already sparked anxiety among investors, businesses and international partners were Support the transition of renewable energies of Nigeria. Yusuf stressed that uncertainty surrounding government policies makes the investment climate more volatile, reducing the confidence of foreign and local investors.
He noted that multilateral organizations, development partners and renewable energy companies have invested massively in the Nigeria solar market in recent years, and any sudden change in commercial policy could undermine these investments. Fear of the instability of politicians has become a major dissuasive for companies seeking to extend their operations in the sector.
“This should be avoided due to the negative impact on investors’ confidence. An urgent clarification of the government’s position is necessary to restore this confidence,” he said.
The CPPE also stressed that Such a decision should not be made unilaterally by The Ministry of Sciences and Technology, as a commercial policy, is a multisectoral issue that requires contributions from the Minister for the Coordination of the Economy, the Minister of Industry, Trade and Investment, and the Minister of National Planning and Budget. Yusuf urged the government to engage in wide consultations With industry stakeholders before changing as important policy.
“The framework of design, formulation and implementation for such a policy should normally be motivated by the Minister of Coordination of the Economy in collaboration with the Minister of Industry, Trade and Investment and the Minister of National Planning and Budget,” he said.
The erroneous interpretation of decree 5
A key argument in favor of the prohibition was the government’s reference to decree 5, which was introduced to promote the development of local technology and increase indigenous participation in public procurement. However, Yusuf said that the order is not a commercial policy and does not impose on a import imports. Instead, he orders government agencies to prioritize local service providers in their supply processes.
He explained that poorly applying this order to restrict imports of the private sector scope of the directive And could create involuntary economic disturbances.
CPPE alternative recommendations
Rather than prohibiting imports squarely, CPPE has recommended a more strategic approach that would encourage local production without compromising access to energy. Yusuf has called on the government to provide incentives to investors in the manufacture of solar panels through:
- Tax incentives for companies that install solar panel production facilities
- Price concessions on imported components necessary for local manufacturing
- Interest rate loans to a figure for solar manufacturers to help evolve production
The CPP also suggested A reduction in Import rights on essential components of renewable energies such as batteries, inverters and wind turbinesfall 5% to make solar solutions more affordable.
Yusuf stressed that the government should focus on affordability rather than climbing costs for consumers. He noted that Nigeria is still in the early stages of the adoption of renewable energies, and imposing a ban without first ensuring a sufficient local production capacity would be counterproductive.
While concerns about the proposed ban continue to grow, There is mounting pressure On the federal government to reconsider its approach and engage with industry players to develop a more sustainable transition strategy.
Yusuf urged political decision -makers to prioritize decision -making based on evidence, including rigorous assessments of domestic production capacity, market demand and the availability of critical raw materials before implementing restrictive trade policies.
