The Centre for the Promotion of Private Enterprise (CPPE) has expressed concerns over the Nigerian government’s plan to ban the importation of solar panels, citing potential negative impacts on the country’s energy crisis and economy.
In a statement signed by the Director/CEO, Dr. Musa Yusuf, the Center noted that Nigeria’s current domestic production capacity is insufficient to meet demand, which could worsen the energy crisis.
“A ban on imports would make solar energy solutions prohibitively expensive for average Nigerians, exacerbating energy access issues.
“The welfare cost of a ban would be high due to increased costs of acquiring solar solutions, which could harm the economy.” Dr Yusuf argued.
The CPPE suggests a gradual transition to domestic production, ensuring adequate local capacity to fill supply-demand gaps.
The centre urged the government to support investors in solar panel production with incentives like tax breaks, tariff concessions, and concessionary financing.
Cutting import duties on batteries, inverters, and wind turbines to 5% could improve energy access, security, and productivity.
The CPPE emphasizes the need for rigorous empirical studies to determine domestic demand, capacity, and implications for the wider economy before making any policy decisions.
They also call for urgent clarification on the government’s position to restore investor confidence.
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