Economist tasks govt. on support for solar panel production

An Economist, Dr Muda Yusuf, has urged government to support solar panel investors with robust fiscal and monetary incentives to improve energy access, security and productivity in the economy.

Yusuf, the Chief Executive Officer (CEO), of the Centre for the Promotion of Private Enterprises (CPPE), made the call on Wednesday in Lagos, in reaction to claims of a ban on importation of solar panels.

He noted that instead of a ban, tax incentives, tariff concession on intermediate products and concessionary long-term financing at a single-digit interest rate should be provided for investors in the sector.

He also urged government to cut the import duty on batteries, inverters and wind turbines to 5 per cent.

This, he said, would reduce reliance on national grid for power supply.

He noted that the nation’s energy access with a per capita electricity consumption of about 160kWh was far below the sub-Sahara average of 350Kwh.

He said the adoption of solar energy solution was one of the most impactful government initiatives to tackle this problem and had gained remarkable traction.

The CPPE boss stated that 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 important to clarify that Executive Order 5 is a procurement policy which directs Ministries, Departments and Agencies (MDAs) to give preference to Nigerian service providers in their procurement process for goods and services.

“It is clearly different from a trade policy measure which has wider economic implications and requires a more rigorous study before policy pronouncements are made,” he said.

Yusuf lauded the need for domestic production of solar panels for self-reliance and conservation of foreign exchange.

He stressed that the transition process should be very painstaking, diligent and gradual while ensuring adequate local capacity to fill the supply-demand gaps.