As I have long predicted that once solar makes decent improvement on our electricity needs, government will remember it for revenue generation. That is how we behave in this African nation: everything must be money and more money for government.
So, it has happened: government is piling 10% tariff (from 5%) on solar panels which are imported into the nation. Simply, the price of solar panels will go up since no one makes any in Nigeria as you need grid electricity before you can make solar panels, and since we do not have any reliable grid electricity, everyone imports.
Nigeria’s plan to produce 30 per cent of its electricity through renewable energy may be stalled as the price of generating solar power has soared, The Nation has learnt.
Solar energy is the commonest and cheapest form of renewable energy produced by individuals, local and state governments. Private firms also see it as cheaper compared to biomass.
It was gathered that the price of generating solar power has gone up, following Federal Government’s decision to increase customs duty on solar power equipment from five to 10 per cent.
Findings at the weekend also revealed that the issue had resulted in the closure of many solar firms, as they could barely procure materials for operation. It was also discovered that price of solar panels, batteries and other equipment had risen considerably.
Renewable Energy Association of Nigeria (REAN) President, Mr Segun Adaju, said the development was expected as there was no other means of generating solar electricity except through importation of solar equipment.
But there is good news: Renewable Energy Association of Nigeria (REAN) President, Mr Segun Adaju, has written the government, national assembly and the customs, seeking for a reversal. Usually, that is impossible as that revenue is also allocated for something.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Mr. Elon Musk and Tesla, welcome to Nigeria as you plan to arrive with your solar business. We hope your AI can model the stochastic nature of Nigerian business policies. As it stands today, budget additional 5% to the cost of your product as the original model has already changed!
A nation in motion. Yes, when most nations are subsidizing renewable energy and incentivizing its citizens to adopt same, Nigeria wants to fix its budget holes from it. That is unfortunate. I hope they reverse this decision as it does nothing to provide accessible electricity in Nigeria.
---
Register for Tekedia Mini-MBA (Feb 10 - May 3, 2025), and join Prof Ndubuisi Ekekwe and our global faculty; click here.
