PWC Warns Solar Import Restrictions Could Threaten Nigeria’s Energy Inclusion Goals

A recent analysis by PricewaterhouseCoopers (PwC) has raised concerns that Nigeria’s decision to restrict the importation of solar energy components could significantly hamper the country’s energy access ambitions. The professional services firm warned that while the intent behind the restriction may be to encourage local manufacturing, the short-term consequences could negatively affect efforts to provide affordable and clean energy to millions of Nigerians, particularly those in underserved and rural areas.

According to PwC, the federal government’s move to ban or heavily restrict the importation of solar panels and related technologies may lead to higher costs, reduced supply, and project delays in the renewable energy sector. This could undermine Nigeria’s efforts to close its energy access gap, currently affecting over 85 million citizens who lack reliable electricity.

The firm emphasized that Nigeria is at a critical point in its energy transition journey, and policy decisions should be guided by a balance between long-term industrialization goals and immediate energy needs. While boosting local solar component manufacturing is a commendable objective, PwC believes the country currently lacks the infrastructure, capacity, and supply chain resilience to meet demand without imports.

The ban, if fully enforced without a transitional framework, could lead to a decline in solar installations, particularly in off-grid rural communities that rely on donor-funded and private sector-led projects. The report also noted that many renewable energy companies rely on affordable and standardized imported equipment to deliver services to low-income households and small businesses.

PwC’s advisory further explained that over the past decade, imported solar technologies have driven the growth of Nigeria’s mini-grid and solar home system markets. A sudden disruption in access to these technologies, the firm said, could erode investor confidence and increase financing risks for energy developers.

Stakeholders in the renewable energy space have echoed these concerns. Many operators fear that a hasty ban could derail progress made under national initiatives like the Nigeria Electrification Project (NEP) and the Solar Power Naija program, which are heavily dependent on imported components. Several industry leaders have called on the government to implement a phased approach that includes incentives for local assembly, rather than a hard stop on imports.

The policy has also drawn criticism for potentially contradicting Nigeria’s commitment to the UN Sustainable Development Goal 7 (affordable and clean energy for all), as well as its broader climate goals under the Paris Agreement. Energy experts say restricting imports without offering viable alternatives could make clean energy more expensive and less accessible to vulnerable populations.

PwC advised that rather than imposing abrupt bans, the government should focus on creating an enabling environment for local manufacturers. This includes offering tax incentives, subsidized financing, reliable infrastructure, and quality control systems that ensure domestically-produced solar equipment meets global standards.

The report also encouraged policymakers to engage stakeholders across the energy value chain, including developers, manufacturers, financiers, and end-users, to co-design a roadmap for gradual import substitution. This collaborative approach, PwC said, would allow time to build local capacity while sustaining momentum in Nigeria’s solar energy expansion.

Furthermore, PwC warned of potential diplomatic and trade repercussions if international solar technology partners view the policy as protectionist. Nigeria’s development partners, many of whom fund solar energy initiatives through concessional loans or grants, may also reconsider ongoing or future support if access to essential components is restricted.

In response to growing backlash, government officials have signaled that the policy is still under review, and that adjustments may be made to ensure it does not stifle innovation or access. The Ministry of Power has also hinted at plans to support local solar companies with incentives and technical assistance, though specifics remain unclear.

In conclusion, PwC’s report underscores the importance of a carefully considered energy policy that aligns industrial development with urgent access needs. As Nigeria navigates its path toward sustainable energy, analysts urge caution against measures that could inadvertently stall progress. A flexible, inclusive, and data-driven policy framework, they argue, will be key to ensuring that solar energy continues to play a central role in electrifying the nation.