The Centre for the Promotion of Private Enterprise, CPPE, has said the Federal Government’s proposed ban on solar panel importation would worsen the energy crisis in Nigeria.
The Chief Executive Officer of Centre, Dr. Muda Yusuf, disclosed this in a statement on Tuesday.
His comment comes amid a proposal by the Minister of Science and Technology, Uche Nnaji, for a ban on the importation of solar panels to encourage its domestic production.
CPPE, an economic think tank group, kicked against the proposed ban on solar panel imports.
According to CPPE, the proposed ban would slow down the growth and adoption of solar energy solutions in Nigeria.
“The CPPE wishes to advise strongly against this policy proposition for the following reasons:
“Currently, Nigeria has one of the worst energy accesses, with a per capita electricity consumption of about 160 kWh, far below the sub-Saharan average of 350 kWh. The adoption of solar energy solutions is one of the most impactful government initiatives to tackle this problem, and it has gained remarkable traction.
“A ban on the importation of solar panels in the face of glaringly inadequate domestic production capacity would worsen the country’s energy crisis.
“It is a complete negation of the government policy to deepen and promote the adoption of renewable energy solutions by households, small businesses, rural communities, government institutions, and other corporate organisations. This adoption of solar solutions has gained impressive momentum in the last two years, especially in light of the soaring energy costs in the economy.
“It would worsen the problem of energy access as it would make the cost of solar energy solutions prohibitive, putting it beyond the average Nigerian.
“The welfare cost of a ban on the importation of solar panels would be incredibly high as a result of the escalation in the cost of acquiring solar solutions. It is bad enough that the current cost of acquisition of solar energy solutions is quite exorbitant. What is desirable at this time is to seek ways to drive affordability, rather than escalate costs.
“The CPPE shares the Minister’s vision of domestic production of solar panels, which is good for self-reliance and conservation of foreign exchange. But the transition process should be very painstaking, diligent, and gradual. A recourse to a hasty decision of banning the importation of solar panels would be very disruptive and counterproductive. It is important to ensure adequate local capacity to fill the supply-demand gaps,” CPPE stated.
DAILY POST recalls that last month, Nnaji had, during an event in Abuja, disclosed the need to phase out solar panel imports to boost local manufacturing.
