Economy
Renewable Energy Can Uplift Nigerian Economy, Standard of Living—Obisesan
Today, it is widely known that for a nation like Nigeria, diversifying energy supply and reducing dependence on imported fuels, generating energy that produces no greenhouse gas emissions from fossil fuels will greatly spur economic growth, development, jobs, increase the living standard of the people and further help businesses reduce excessive cost.
Mr Mark Obisesan, a renewable energy expert and a public affairs analyst, recently shared his views and gleamed more light on the growth prospects of renewable energy for Nigeria and Nigerians.
What led your foray into renewable energy in Nigeria?
Several years ago, I tried to set up a small factory somewhere in Kwara State to produce bottled water. It was a tough experience as we had to run the factory on a diesel engine. This drove the cost of overheads so high that it swallowed up most of the profits.
It was that experience that opened my eyes to the importance of cheap and steady power supply. But while my business struggled from inadequate power supply, the host community were in a more difficult situation. They hardly had power to charge their phones or to even run small businesses. It was almost like they were completely shut out of the world. Their experience got me thinking about how we can solve the challenges of electricity in Nigeria. That was how I stumbled on how to use renewable energy to solve Nigeria’s electricity shortages after an extensive research.
What kind of opportunities exist with renewable energy in Nigeria?
The opportunities that renewable energy provides in Nigeria are limitless. You must first realize that over 80 million Nigerians lack access to electricity, according to a world bank report. Our ability to use renewable energy to provide affordable electricity for these 80 million Nigerians will drastically boost the productivity of millions of Nigerians.
This gap in supply also provides a market opportunity for entrepreneurs like me to create value and profit from such value creation.
Furthermore, we will need to create thousands of decent jobs to effectively take advantage of the opportunity. In other words, there will be employment opportunities for young Nigerians, opportunities for the government to raise more taxes and an enabling environment for more small businesses to thrive.
Are there any policy hurdles you envisage?
The biggest challenge currently facing the power sector is too much interference from the government. On one hand, the government claims it has privatized the power sector (GENCOS & DISCOS) but has continued to regulate the pricing. This makes it difficult for the Discos to profit from their investments which further discourages private capital from coming into the sector.
However, in terms of renewable energy, the absence of a robust policy from the federal government has been largely responsible for the slow pace of adoption. The initial costs (especial solar and wind) are quite high and the government may need to find areas of intervention to ensure that the cost of providing such electricity remains low.
The government may also seek to reduce the cost of land where large installations of solar panels are made so as to also drive down the cost of electricity. There are several other ways that the government, by way of policy, can support the development of renewable energy in Nigeria.
Is renewable energy sufficient to solve the current power challenges in the country?
The potential of renewable energy in Nigeria is limitless. Studies have shown that solar thermal power alone can potentially generate 427,000MW, whereas Nigeria currently generates less than 13,000MW. This does not mean renewable energy can solve all of Nigeria’s electricity challenges, it can, however, boost access to electricity for Nigerians especially those living in rural communities. Surely, renewable energy will help to complement our generating capacity and grant several more Nigeria access to electricity supply.
What does the future hold for renewable energy in Nigeria?
The future of renewable energy in Nigeria is filled with prospects. The growing demand for electricity in Nigeria is forcing citizens to seek alternatives and better options for electricity. This demand will certainly spur the need for renewable energy.
More so, the global clamour for clean energy and the funding available for investment in renewable energy will certainly make it attractive to entrepreneurs and policymakers in the near future.
For me, I’m taking a huge bet on the fact that the future of electricity supply in Nigeria is pointing towards renewable energy.
By Dipo Olowookere
About 0.04 per cent was recovered on Friday from the loss recorded by the Nigerian Exchange (NGX) the previous due to profit-taking.
Yesterday, investors were in the market with renewed vigour, mopping up stocks trading at relatively cheaper prices.
According to data, the insurance counter gained 0.41 per cent, the banking sector appreciated by 0.38 per cent, and the consumer goods index grew by 0.14 per cent.
The gains achieved by these three sectors were enough to lift Customs Street at the close of business despite the 0.26 per cent decline printed by the industrial goods segment and the 0.14 per cent loss suffered by the energy industry. The commodity counter was flat during the session.
A total of 43 equities gained weight on the last trading day of this week, while 26 equities shed weight, indicating a positive market breadth index and strong investor sentiment.
Red Star Express increased its share price by 10.00 per cent to N13.20, NCR Nigeria grew by 9.97 per cent to N128.55, SCOA Nigeria inflated by 9.96 per cent to N14.90, Omatek appreciated by 9.94 per cent to N1.77, and Deap Capital expanded by 9.85 per cent to N4.46.
On the flip side, McNichols decreased by 8.81 per cent to N6.00, Legend Internet crumbled by 7.56 per cent to N5.50, Cornerstone Insurance crashed by 6.48 per cent to N6.35, C&I Leasing contracted by 6.29 per cent to N8.20, and Austin Laz slipped by 5.78 per cent to N3.75.
Yesterday, 539.9 million shares valued at N16.7 billion were transacted in 48,023 deals versus the 1.0 billion shares worth N31.6 billion executed in 51,227 deals in the preceding day, implying a shrink in the trading volume, value, and number of deals by 46.01 per cent, 47.15 per cent, and 6.26 per cent apiece.
Zenith Bank was the most active for the day with 54.6 million stocks sold for N3.8 billion, Jaiz Bank traded 41.5 million units worth N359.4 million, Secure Electronic Technology transacted 37.7 million units valued at N39.2 million, Access Holdings exchanged 30.5 million units for N699.2 million, and Lasaco Assurance transacted 27.2 million units worth N68.3 million.
When the market closed for the day, the All-Share Index (ASI) went up by 72.21 points to 166,129.50 points from 166,057.29 points and the market capitalisation gained N31 billion to N106.354 trillion from N106.323 trillion.
By Adedapo Adesanya
It was a positive ending for the Naira this week after it further appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, January 16 by N1.33 or 0.09 per cent to sell for N1,417.95/$1 compared with the previous day’s N1,419.28/$1.
The domestic currency also gained N2.41 against the Euro in the official market to close at N1,647.51/€1 versus the preceding session’s closing price of N1,649.92/€1, however, it suffered a N7.97 loss against the Pound Sterling in the same market window to trade at N1,901.32/£1, in contrast to Thursday’s closing price of N1,893.35/£1.
In the same vein, the Nigerian Naira depleted against the Dollar at the GTBank FX counter by N2 to quote at N1,427/$1 compared with the previous day’s N1,425/$1, but strengthened against the greenback at the black market yesterday by N5 to settle at N1,485/$1 versus the N1,490/$1 it was exchanged a day earlier.
Improved supply conditions helped keep the market within range as exporters’ and importers’ inflows in addition to non-bank corporate supply enhanced liquidity as the Central Bank of Nigeria (CBN) made no visible intervention.
Stronger external inflows from foreign portfolio investors (FPIs) and improving current account dynamics, continue to align with structural support in the wider economy.
Nigeria has seen projections of a stronger economic or gross domestic product (GDP) growth and lower inflation in 2026, with these forecasts citing improved macroeconomic fundamentals and reform impacts.
As for the cryptocurrency market, it was mixed following selloff in precious metals and lower US stocks appeared to be denting crypto sentiment.
Gold and silver, both of which also enjoyed big rallies earlier this week, tumbled 1.2 per cent and 5 per cent, respectively while key US stock indexes — the Nasdaq, S&P 500 and Dow Jones Industrial Average — all reversed from early gains to modest losses in Friday trade.
Dogecoin (DOGE) shrank by 2.2 per cent to $0.1370, Ripple (XRP) slipped by 0.8 per cent to $2.05, Ethereum (ETH) went down by 0.7 per cent to $3,228.56, and Bitcoin (BTC) slumped by 0.6 per cent to $95,086.80.
Conversely, Litecoin (LTC) appreciated by 3.2 per cent to $74.48, Solana (SOL) rose by 0.4 per cent to $143.70, Cardano (ADA) jumped by 0.2 per cent to $0.3942, and Binance Coin (BNB) increased by 0.1 per cent to $935.88, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
Oil prices settled higher amid lingering worries about a possible US military strike against Iran, a decision that may still occur over the weekend.
Brent crude settled at $64.13 a barrel after going up by 37 cents or 0.58 per cent and the US West Texas Intermediate (WTI) crude finished at $59.44 a barrel after it gained 25 cents or 0.42 per cent.
The US Navy’s aircraft carrier USS Abraham Lincoln was expected to arrive in the Persian Gulf next week after operating in the South China Sea.
Market analysts noted that it doesn’t seem likely anything will happen soon. However, the weekends have become the perfect time for actions so as not offset the markets.
The market had risen after protests flared up in Iran and US President Donald Trump signalled the potential for military strikes, but lost over 4 per cent on Thursday as the American president said Iran’s crackdown on the protesters was easing, allaying concerns of possible military action that could disrupt oil supplies.
Iran produces approximately 3.2 million barrels per day, accounting for roughly 4 per cent of global crude production, so it was not a coincidence that markets rallied sharply through Tuesday and Wednesday as President Trump canceled meetings with Iranian officials and posted that “help is on its way” to Iranian protesters, raising fears of potential US military strikes that sent prices surging toward multi-month highs.
Weighing against those fears are potential supply increases from Venezuela.
The Trump administration is exploring plans to swap heavy Venezuelan crude for US medium sour barrels that can actually go straight into Strategic Petroleum Reserve (SPR) caverns, since not all all oil belongs in the reserve.
According to Reuters, the Department of Energy is considering moving Venezuelan heavy crude into commercial storage at the Louisiana Offshore Oil Port, while US producers deliver medium sour crude into the SPR in exchange.
Analysts expect higher supply this year, potentially creating a ceiling for the geopolitical risk premium on prices.
Some investors covered short positions ahead of the three-day Martin Luther King holiday weekend in the US.
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