Amid the crisis in Nigeria’s power sector, importation of photovoltaic solar panels has risen in recent years, now amounting to almost N200 billion annually.

However, the federal government has insisted on ending the importation of solar panels as a means to save the much-needed foreign exchange and reduce pressure on the naira.

The government is instead looking in a different direction, and has recently revealed what will be the alternative to solar panel imports.

The Managing Director/Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, shared this update at a meeting held in Victoria Island.

The meeting between the REA and the Lagos State Government was to sign a Memorandum of Understanding for the electrification of rural communities in Lagos.

FG signs MOU to manufacture solar panels locally

Aliyu revealed that to replace the importation of solar panels, plans are being made to manufacture them locally.

He hinted that Lagos state, as the centre of excellence, is expected to blaze the trail in domestic production, while other states will follow shortly after.

Aliyu explained that the plans are already in motion with the presence of PV solar panel manufacturing assembly plant in Ikotun area of Lagos state.

He detailed:

“They started with 10 megawatts, but with the collaboration with REA, they have moved and increased their capacity to an additional 100 megawatts.”

He also hinted that plans are underway to sign a joint development agreement with Green World for a $150 million lithium battery assembly plant in Lagos state.

FG to support local production of solar panels

The PUNCH reports that the Minister of Science and Technology, Uche Nnaji, shared the government plans to support local manufacturing of solar panels. Nnaji pointed out that courtesy of the National Agency for Science and Engineering Infrastructure (NASENI), local production is ongoing.

Nnaji said;

“With NASENI here, you know that we have panels. It has a factory that has started producing solar panels, and other private individuals are also producing solar panels as we speak. So, all we need to do is, even through science and technology, through our Presidential Executive Order No. 5, we will stop all these importations of solar panels. We will support our local industries to grow.”

The REA however advised that the ban of importation be put off until local production capacity has increased, because solar panels have formed a viable alternative for millions of Nigerians in underserved areas.

The removal of fuel subsidies and increase in fuel prices have it clear to Nigerians that they cannot depend on fuel and diesel-powered generators as it is now too expensive.

Keep in mind that Anergy, a clean tech startup backed by Billionaire Bill Gates, has raised more funding to meet the demand for solar panels in Nigeria.