Global consulting giant PricewaterhouseCoopers (PwC) has issued a cautionary report on the Federal Government’s proposed ban on solar panel imports, warning that a rushed policy implementation could significantly hinder Nigeria’s progress in energy access, disrupt the growing clean energy sector, and discourage foreign investment.
The report, titled “Rethinking Nigeria’s Proposed Solar Panel Import Policy”, was released in response to the Federal Government’s plan to restrict the importation of solar panels. The policy, announced through the Ministry of Science and Technology, aims to curb the influx of substandard solar products, boost local production, reduce forex outflows, and create jobs.
However, PwC’s findings suggest that without a phased and structured transition, the policy could backfire by worsening energy poverty and threatening the viability of renewable energy businesses operating in Nigeria.
According to PwC’s analysis, Nigeria imported solar panels worth over $200 million in 2023 — a clear indication of the nation’s demand for alternative power sources in the face of an unstable national grid. By Q4 2024, solar panel imports were valued at approximately ₦237.3 billion but dropped by nearly 89% to ₦125.29 billion in Q1 2025, largely due to uncertainties created by the proposed ban.
“The scale of these imports is not just reflective of our energy deficit, but also the absence of local manufacturing capacity to meet existing demand,” PwC noted.
Rather than an outright ban, PwC recommends a gradual, three- to five-year reduction in solar imports. This, the firm argues, would allow time for Nigeria’s nascent solar manufacturing industry to expand its capacity, develop quality assurance protocols, and stabilize supply chains.
“A sudden ban could trigger market shortages, drive up costs for consumers, and stall Nigeria’s clean energy ambitions,” the report warned. Instead, PwC suggested implementing import quotas, progressive tariffs, or blended procurement models to balance the push for local manufacturing with the need for supply continuity.
While acknowledging current government incentives such as the Pioneer Status Incentive, VAT exemptions, and green financing schemes, PwC stated that these are often underutilized due to bureaucratic inefficiencies, low awareness, and fragmented application processes.
The firm urged the Federal Government to establish single-window application systems, clear eligibility guidelines, and renewable energy units within key ministries and agencies. Additionally, PwC called for the development of renewable energy industrial zones with shared infrastructure, proximity to ports, and streamlined permitting to cut logistics costs.
PwC emphasized that a thriving solar manufacturing industry hinges on technical expertise. It called for partnerships between the government and educational institutions to develop a national renewable energy skills framework that trains engineers, technicians, and quality assurance experts.
The firm also advocated for stronger enforcement of product quality standards, urging the Standards Organisation of Nigeria (SON) and the Nigerian Electricity Management Services Agency (NEMSA) to align local standards with those of the International Electrotechnical Commission (IEC).
Access to capital remains a pressing constraint for both solar manufacturers and end-users, especially in rural and off-grid areas. PwC recommended that institutions such as the Bank of Industry and the Central Bank of Nigeria expand long-term green financing and support innovative models like Pay-As-You-Go (PAYG) to deepen solar adoption across low-income communities.
It also called for greater collaboration with the private sector, development partners such as the World Bank and African Development Bank, and civil society organizations to co-create a clear, realistic, and investor-friendly renewable energy roadmap.
PwC concluded that while Nigeria’s goal of boosting local solar panel production is admirable, a poorly sequenced policy could jeopardize current energy access gains and send negative signals to investors.
“Getting the policy right can accelerate Nigeria’s energy transition, create jobs, and support industrial growth,” the report stated. “Getting it wrong could leave millions in the dark and slow the country’s clean energy momentum.”
As Nigeria continues its drive toward net-zero targets and economic diversification, experts say aligning policy ambition with practical capacity will be key to unlocking the full potential of renewable energy.