REAN Rises as FG Considers Ban on Solar Panel Imports
The Nigerian Renewable Energy Association has urged the federal government not to proceed with its intention to prohibit the importation of solar panels.
The association, in a statement made available to our correspondent yesterday, said the move to ban solar imports in Nigeria is a decision that demands careful reconsideration.
Recently, the Minister of Science and Technology, Uche Nnaji, stated that the federal government is prepared to back domestic production of solar panels while limiting imports.
Nnaji emphasized Nigeria’s ability to manufacture solar panels via the National Agency for Science and Engineering Infrastructure.
"With NASENI involved, you can be assured that we have access to solar panels. The organization operates a facility that has begun manufacturing them, and several individual producers are currently making solar panels too. Therefore, with the aid of scientific advancements and technology, along with our Presidential Executive Order No. 5, we aim to halt all imports of solar panels. Instead, we plan to bolster our domestic industries," he stated.
In response, the REAN stated that they comprehend the government’s aim to boost domestic production, fortify the economic structure, and maintain energy safety. Nonetheless, they emphasized that the government should foster a conducive atmosphere for every participant involved.
Mr. Ayo Ademilua, the President of REAN, stated in the communiqué that the administration's praiseworthy goals have garnered full backing from REAN.
Nevertheless, fostering a supportive atmosphere for enterprises to flourish should precede any limiting actions that might hinder advancement and unintentionally damage the sector the administration aims to strengthen.
Solar energy has emerged as a source of hope for countless Nigerians still lacking access to the national electricity grid. It powers residences, educational institutions, healthcare facilities, and businesses through solutions provided by companies, community groups, and individual consumers alike. This growth within the renewable energy industry has drawn investments and spurred innovative advancements. However, Ademilua cautioned against imposing restrictions on imported solar products until domestic manufacturing capacities have been sufficiently enhanced; otherwise, such measures could impede this positive trajectory.
As he stated, local capability cannot be established instantly should the administration neglect specific issues and obstacles.
He went on, "Building a manufacturing sector doesn’t happen quickly. To enable local production to expand and rival global competitors, manufacturers require funding, robust infrastructure, advanced technology, and trained workers."
The present situation poses several obstacles—including high production expenses, inefficient supply chains, and restricted access to raw materials. It would be impractical and unwise to expect domestic producers to fulfill national requirements without tackling these issues first.
Limiting imports prematurely might result in unforeseen outcomes. This could cause prices to increase, making solar options less available to average Nigerians.
The head of REAN contended that companies relying on foreign parts might find it difficult to remain solvent, which could result in employment reductions rather than new jobs being generated.
He warned that the progress the renewable energy sector has made might decelerate, which could deter investors due to the ambiguity surrounding the policy landscape.
He recommended that the government adopt a step-by-step strategy rather than impose an immediate prohibition.
Instead of imposing a complete prohibition, a gradual strategy that fosters domestic production while maintaining an open marketplace for essential imports could prove more beneficial. By offering incentives such as tax exemptions, subsidies, and improved infrastructure support to local manufacturers, we can establish the groundwork required for enduring stability. Promoting collaborations between global enterprises and Nigerian businesses would aid in sharing expertise and technological advancements, thereby fortifying the sector internally," observed Ademilua.
He asserted that Nigeria's shift towards sustainable energy is a process rather than one specific policy choice. For the growth of the country's renewable energy industry, he emphasized that the government should play a supportive role instead of hindering progress.
He suggested, "The emphasis ought to be on nurturing a competitive and sustainable sector—a market that bolsters local enterprises without severing the crucial support provided by current import practices."
REAN continues to be dedicated to collaborating with policymakers in crafting solutions that harmonize national interests with practical industry needs. We encourage the government to reassess the suggested prohibition and focus on fostering a robust, independent solar sector that genuinely benefits the Nigerian populace.
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