By Faridat Salifu
Global consulting firm PricewaterhouseCoopers (PwC) has warned the Federal Government against rushing plans to ban solar panel imports, saying the move could backfire by stalling Nigeria’s clean energy progress and scaring off investors.
In a new report titled “Rethinking Nigeria’s Proposed Solar Panel Import Policy”, PwC acknowledged the government’s push to boost local manufacturing, conserve foreign exchange, and create jobs.
But it cautioned that without proper planning, an immediate ban could do more harm than good.
“This isn’t just about trade policy — it’s about energy access, livelihoods, and long-term investor confidence,” the report stated.
Nigeria had imported over four million solar panels in 2023 alone, worth more than $200 million — a sign, PwC said, of both the scale of the energy crisis and the country’s lack of domestic production capacity.
By Q1 2025, solar panel imports had already dropped by 89%, down to ₦125.29 billion from ₦237.3 billion the previous quarter.
PwC argues that a sudden clampdown could cripple clean energy efforts just when demand is rising.
Instead of an outright restriction, the firm recommends a phased approach over three to five years.
That way, local manufacturers would have time to build up their capacity, meet demand, and improve product quality — without cutting off supply to millions who depend on solar solutions.
The report proposes practical tools like import quotas, gradual tariffs, and blended procurement models to keep the market stable while encouraging local production.
PwC also called on the government to improve access to existing incentives — like duty waivers, tax breaks, and green finance schemes — which it says are underused due to bureaucracy and confusion.
“Right now, most of these policies are on paper but hard to access,” the report noted.
A simpler, single-window application system and dedicated renewable energy desks in key ministries could help unlock their potential.
The firm also urged the government to create dedicated industrial zones for renewable energy, complete with shared infrastructure, faster permitting, and easy access to ports and logistics hubs to cut costs for manufacturers.
Beyond factories and equipment, PwC stressed that local manufacturing depends on people — trained engineers, technicians, and quality control experts.
Without investment in human capital, the solar industry won’t be able to compete or grow, the report warned.
To fix that, PwC suggested creating a national renewable energy skills framework in partnership with universities, polytechnics, and training centers.
The report also highlighted the need for stronger product standards and enforcement.
It called on regulatory agencies like the Standards Organisation of Nigeria (SON) and the Nigerian Electricity Management Services Agency (NEMSA) to adopt international standards and ensure quality across the board.
On the financial side, PwC identified lack of capital as a major barrier.
It recommended that the Central Bank of Nigeria and the Bank of Industry provide long-term green financing — and support Pay-As-You-Go models to expand access for off-grid homes and businesses.
Finally, the firm called for wider stakeholder involvement — including the private sector, international donors, and civil society — to shape a realistic, unified roadmap for Nigeria’s renewable energy future.
“Publishing annual progress reports and building in feedback loops will help keep the process transparent, measurable, and flexible,” it added.
While supporting the goal of building a strong local industry, PwC’s bottom line was clear: don’t rush it.
“A hasty ban could undo years of clean energy progress and make solar more expensive for millions of Nigerians,” the report concluded.
“But if done right with careful planning, smart incentives, and honest collaboration the policy could deliver real results for jobs, energy access, and Nigeria’s climate goals.”
