The Renewable Energy Association of Nigeria 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 ready to back domestic production of solar panels while limiting imports.
Nnaji emphasized Nigeria’s capability to manufacture solar panels via the National Agency for Science and Engineering Infrastructure.
“Thanks to NASENI’s presence, we can confirm that we indeed possess solar panels. The organization operates a facility that has commenced production of such units, with several individual entities also actively involved in manufacturing them at this very moment. Moving forward, under Presidential Executive Order No. 5, we aim to halt all imports related to solar panels. Instead, we plan to bolster our domestic industrial sector,” he stated.
In response, the REAN stated that they comprehend the government’s aim to boost local production, fortify the economy, and secure energy stability. Nonetheless, they emphasized that the government needs to establish a supportive atmosphere for every participant involved.
Mr. Ayo Ademilua, the President of REAN, stated in his address that the government’s praiseworthy goals have earned full support from REAN.
Nevertheless, fostering a supportive atmosphere for enterprises to flourish should precede any limiting actions that might impede advancement and unintentionally harm the sector the administration aims to strengthen.
“Solar energy has emerged as a ray of hope for countless Nigerians who lack access to the national electricity grid. From businesses and communities to individual households, people depend on solar solutions to energize their homes, schools, hospitals, and commercial activities. This growth within the renewable energy sector has drawn investments and spurred innovation. However, imposing an import ban on solar products could jeopardize these advancements unless domestic manufacturing capacities are enhanced beforehand,” cautioned Ademilua.
As he stated, local capability cannot be established instantly unless the administration tackles specific issues and obstacles.
He went on, “Building a manufacturing sector doesn’t happen quickly. To enable local production to expand and stand up against global competition, manufacturers require financing, robust infrastructure, advanced technology, and trained workers.”
The present situation poses several obstacles such as high production expenses, inefficient supply chains, and restricted availability of raw materials. It would be impractical and unwise to expect domestic producers to satisfy national requirements without tackling these issues first.
Imposing import restrictions prematurely might result in unforeseen outcomes. This could cause prices to increase, thereby reducing accessibility of solar solutions for 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 enforce a complete prohibition.
Instead of imposing a complete prohibition, implementing 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 infrastructural assistance 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 a one-time choice. For the growth of the renewable energy industry, he emphasized that the government should play the role of facilitator instead of hindrance.
His advice was: “The emphasis should be on nurturing a competitive and sustainable sector—one that aids local enterprises without severing the connection that current imports maintain.”
REAN continues to be dedicated to collaborating with policymakers in crafting solutions that harmonize national interests with real-world industry needs. We encourage the government to revisit the suggested ban and focus on fostering a robust, sustainable solar sector that genuinely benefits the Nigerian populace.
Provided by SyndiGate Media Inc.
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