FG Plans to End ₦200bn Solar Panel Imports, Partners with Lagos to Boost Local Manufacturing and Rural Electrification
The Federal Government has reiterated its commitment to halting the importation of photovoltaic (PV) solar panels, citing over ₦200 billion spent so far as a major concern.
This was disclosed on Monday by the Managing Director/Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, during a roundtable discussion between the REA and the Lagos State Government in Victoria Island, Lagos.
The event also marked the signing of a Memorandum of Understanding (MoU) between both parties to accelerate the electrification of rural communities across Lagos State.
Aliyu emphasized that the Federal Government is now focused on promoting the local manufacturing of renewable energy equipment. He said Lagos, recognized as the centre of excellence, will spearhead the effort to domesticate production.
“Over ₦200bn has been spent on importing PV panels into the country. While imports have played a role, our focus now is on domesticating production. Lagos will lead this transformation,” he stated.
He added that the REA has already facilitated the growth of a solar panel manufacturing plant in Ikotun, Lagos, which expanded its capacity from 10 megawatts to an additional 100 megawatts in collaboration with the agency.
In a further boost to the local renewable sector, Aliyu revealed that the REA is finalizing a joint development agreement with Green World for a $150 million lithium battery assembly plant in Lagos.
Supporting this initiative, Minister of Science and Technology, Uche Nnaji, recently affirmed the government’s readiness to back local solar panel production and limit imports. He highlighted the existing production capabilities of the National Agency for Science and Engineering Infrastructure (NASENI) and private sector involvement, citing Presidential Executive Order No. 5 as a legal backing for the restriction.
However, the Renewable Energy Association of Nigeria (REAN) cautioned against an outright ban on imports without first ensuring strong local capacity. The association noted that solar energy remains vital for millions of Nigerians lacking access to the national grid.
“Solar has become a lifeline for homes, businesses, schools, and hospitals. The sector is growing and attracting investment. A sudden import ban without strengthening local production could stall this momentum,” REAN warned.
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