Energy experts and policymakers have called on the Federal Government to provide affordable financing and low-interest loans to local solar manufacturers to strengthen Nigeria’s renewable energy sector.
The demand was made during the Abuja Solar Policy Roundtable, organised by the Global Initiative for Food Security and Ecosystem Preservation (GIFSEP). Stakeholders at the meeting argued that without targeted financial support, the transition to solar energy may remain unaffordable for many Nigerian households and businesses.
To ensure a sustainable energy transition, participants proposed a strategy involving three key areas: affordable financing, stricter quality control, and a phased localisation policy. This approach aims to build a robust domestic manufacturing base while preventing the high costs often associated with imported renewable energy technologies.
Strategies for solar industry growth
A primary concern raised during the roundtable was the heavy reliance on imported solar components. Experts noted that current economic pressures, including foreign exchange volatility and high inflation, have made solar products increasingly expensive. By providing low-interest loans, the government could enable local manufacturers to scale production, thereby reducing the long-term cost of solar installations through domestic supply chains.
The proposed phased localisation policy would involve a gradual shift from importing finished products to manufacturing them within Nigeria. This strategy is intended to protect emerging local industries from being overwhelmed by cheap imports while building the technical capacity required for long-term energy independence. Industry leaders noted that the ability of Small and Medium Enterprises (SMEs) to adopt solar technology is directly linked to the availability of locally-made, competitively priced hardware.
Beyond financing, the roundtable emphasised the need for stronger quality control. Policymakers warned that a lack of oversight in the solar market could lead to the influx of substandard panels and batteries. Such products, while cheaper initially, often fail prematurely, causing significant financial losses for consumers and undermining public confidence in renewable energy solutions.
The current energy landscape in Nigeria, characterised by frequent grid collapses and the rising cost of petrol and diesel, has created a massive demand for off-grid solar solutions. As SMEs struggle with the high cost of powering their operations, solar energy offers a more predictable alternative. However, if the manufacturing side of the industry is not supported, the cost of these systems will continue to be dictated by international market fluctuations and currency depreciation.
While the recommendations from the GIFSEP-led roundtable provide a roadmap for industry growth, the actual implementation of such policies remains dependent on government action. There is currently no confirmed timeline from the Ministry of Power or the Central Bank of Nigeria regarding the introduction of specific credit facilities for renewable energy manufacturers.
Explore more News stories from Business Elites Africa.
