Import Duty on Solar Panels Threatens Nigeria’s 30% Electricity

Operators push $500m investments to Zambia

The federal government’s target to generate 30 per cent of Nigeria’s electricity through renewables by 2030 is under threat by the five – 10 per cent import duty imposed on solar panels by the Nigeria Customs Service, the Executive Committee of the Renewable Energy Association of Nigeria (REAN) has said.

REAN has also raised the alarm that while Nigeria has only $15 million investments in solar energy, Zambia has attracted $500 million worth of investments, stressing that imposing duties on solar panels will further hurt Nigeria’s capacity to attract investments.

In a communiqué issued in Lagos at the weekend, REAN noted that even though import duty on solar panels should be zero under the CET Code 8541.4010.00, their members are being forced to pay five – 10 per cent import duty on solar panels.

The operators alleged that the Nigeria Customs Service re-classified solar panels as DC generators to attract import duty, adding that the development will increase the cost of solar panels and discourage investments in renewable energy.

The investors also added that with the imposition of import duty on solar panels, discharge of goods from the ports has been slowed down immensely, while demurrage charges have reason for their members since the beginning of 2018.

“Nigeria moved up 24 places from 169th to 145th on the World Bank Ease of Doing Business Report in 2017 because this administration has demonstrated a willingness to improve the business climate and ensure the survival of the private sector. We commend the Presidential Enabling Business Environment Council (PEBEC) team on its successes thus far. However, it will be counterproductive for government agencies at the ports to operate in a manner that sets them against the vision of government.

This will reverse achievements this government has made thus far,” REAN said.