The federal government has shelved plans to ban solar panel imports immediately, saying Nigeria cannot restrict imports before it has the capacity to manufacture the panels itself.
The minister of Innovation, Science and Technology, Kingsley Udeh, disclosed this on Friday in an interview with the Nigerian Television Authority (NTA).
He said the government’s focus would be on making sure that only panels meeting set standards are sold in the country, whether made locally or imported from credible sources.
Udeh said the government was working to close Nigeria’s energy gap, including through its “Renewed Hope Solarisation Project”, which is providing electricity to federal universities and other institutions. He said a ban could not be considered until local production capacity improves, though he noted that manufacturing in the country is growing.
The decision follows pushback from industry players and renewable energy advocates, who argued that restricting imports before local factories could meet demand would raise electricity costs and slow the energy transition.
Nigeria relies heavily on imported solar equipment as millions of households and businesses cope with unreliable grid supply or have no access at all. Chinese customs data cited by the energy think tank Ember show that China exported 2.4 gigawatts of solar panels to Nigeria in the 12 months to August 2026, valued at $269 million.
Analysis of the figures suggests that producing the same amount of electricity with diesel generators would cost about $980 million a year at current fuel prices. That would leave users with potential savings of more than $700 million annually if solar fully replaces diesel.
Energy analysts also estimate that a 420-watt panel costing about $60 can produce roughly 550 kilowatt-hours a year. Generating the same power with diesel would cost about $160 a year, meaning the panel could pay for itself in about five months. This excludes the cost of batteries, inverters, installation and maintenance, and assumes its full output replaces diesel power.
The President of the Renewable Energy Association of Nigeria, Ayo Ademilua, said members support the goal of a domestic solar manufacturing industry, and that many are already investing in local assembly. He cautioned, however, that local factories cannot yet meet national demand in volume or price, and that a ban now would have raised costs and stalled projects.
The Executive Director of the Global Initiative for Food Security and Ecosystem Preservation, Dr David Michael, said Nigeria should not have to choose between building a local solar industry and keeping clean energy affordable. He called for a clear, long-term plan to attract investment in local manufacturing.
The Programme Director of Renewables First in Pakistan, Muhammad Mustafa Amjad, said Nigeria could learn from Pakistan, where cheap solar equipment has helped households and businesses reduce reliance on conventional power. He said keeping imports open would help Nigeria, with its abundant sunshine and heavy dependence on diesel generators, follow the same path.
The Nigeria Campaign Director of the Secure Energy Project, Joseph Ibrahim, also welcomed the decision. He said affordable solar must remain a national priority and called for a long-term policy that supports local manufacturers and helps them eventually compete with imports on price and quality.
The import restriction debate dates back to March 2025, when Udeh’s predecessor, Uche Nnaji, proposed curbs to encourage local manufacturing. Nnaji left office in October 2025, but the proposal continued to create uncertainty for businesses. In April 2025, the head of the Rural Electrification Agency had said imports would not be restricted until local production could meet demand. No formal withdrawal of the proposal followed, leaving operators worried that a ban could still come.
Advocates are now asking for a phased transition of three to five years, backed by published timelines, incentives for manufacturers and measurable targets for local production.
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