Nigeria ditches solar panel import ban that could have cost the Nigerian economy $700 million a year
New minister backs "build first" approach: local manufacturing to grow before imports are restricted
Nigeria will not impose an immediate ban on solar panel imports, the Minister of Innovation, Science and Technology, Dr Kingsley Udeh, announced today. The decision follows pushback from business leaders and sustainable energy advocates.
A ban would have forced households and businesses to generate electricity using diesel/petrol generators, a far more expensive and polluting way to make electricity than using solar panels. In Nigeria a 420 W solar panel costs about $60 and produces around 550 kWh a year. Generating the same electricity from diesel would cost about $160 a year in today’s prices.
Minister Udeh told The Nigerian Television Authority on Friday, "Soon you will see that we only have in the Nigerian market standard solar panels, either manufactured in Nigeria or imported from reliable sources, and they're all high standard to ensure that we have energy assets being supported by solar power or renewable energy."
In the 12 months to August 2026, China exported 2.4 GW of solar panels to Nigeria, which buys almost all its panels from China. Generating the same electricity with home diesel/petrol generators would cost around $980 million a year at today's diesel price of $1.36 a litre. According to Chinese customs (GACC) data,the panels cost $269 million, so switching to solar could save Nigerians more than $700 million in a single year. This is supported by research from energy think tank, Ember, which found that solar panels pay for themselves in about three months, assuming 100% of the solar generation is replacing diesel generation. Solar panels last well over 25 years, so the diesel savings will happen every year.
Currently Nigeria imports almost all its solar panels and although the government wants more panels made at home, local factories cannot yet meet demand from many of the 86.8 million Nigerians who still have no electricity.
Businesses and climate groups welcomed the news but stressed that "build first" only works with a published plan.They are calling for timelines, incentives for local manufacturers and clear markers for when localisation becomes realistic. They are also calling for a three-to-five-year phased transition.
The import restriction was first proposed in March 2025 by Dr Udeh's predecessor, Uche Nnaji, who left office in October 2025. In April 2025 the head of the Rural Electrification Agency said imports would not be restricted until local capacity could meet demand. But the government never formally dropped the plan, leaving businesses and campaigners fearing a ban.
Ayo Ademilua, President, Renewable Energy Association of Nigeria, said: “Our members share the Minister’s dream of a Nigeria that makes its own solar panels. Many of us are already investing in local assembly and manufacturing, and we want that industry to grow. But we have to be honest about where we are. Solar has become a lifeline for millions of Nigerians the grid doesn’t reach: homes, hospitals, schools, farms and small businesses. Local production is growing, but it can’t yet meet that demand in volume or price. A ban now would have raised costs, stalled projects and put the progress of the last decade at risk.”
Dr David Michael, Executive Director, GIFSEP, said: "Nigeria shouldn’t have to choose between building a domestic solar industry and making clean energy affordable for its people. The government’s decision is a welcome recognition that both must go hand in hand. The priority now is a clear, long-term plan that attracts investment in local manufacturing while ensuring millions of Nigerians can access the affordable, reliable electricity they urgently need.”
Muhammad Mustafa Amjad, Program Director, Renewables First (Pakistan) said: “Pakistan showed the world what happens when ordinary households and businesses get access to cheap solar. That experience is now shaping thinking across the world and Nigeria; with abundant sunshine, a deeply entrepreneurial population and a costly dependence on diesel generators; is primed to carry this revolution into Africa. Keeping the door open to affordable solar imports will make it possible.“
Joseph Ibrahim, Nigeria Campaign Director, Secure Energy Project: “This is a welcome step for Nigeria’s clean energy future. At a time when millions of Nigerians still struggle to access reliable electricity, keeping solar panels affordable and accessible must remain a national priority. We welcome the government’s recognition that building local manufacturing capacity takes time, investment and the right support. This has been our position as the Solar Power Nigeria coalition from the beginning.
The priority now must be to develop a clear, long-term plan that supports local manufacturers, attracts investment and ensures that solar remains affordable and accessible for Nigerian households and businesses. We remain committed to working with the government, industry and civil society to promote policies that put Nigerians’ energy needs first and secure a more sustainable energy future for the country.”
ENDS
Media contacts:
Alice Harrison, Secure Energy Project, alice@secureenergyproject.org
Lorna Greenwood, Secure Energy Project, lorna@secureenergyproject.org
