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 Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange appreciated by 0.19 per cent on Wednesday, January 29 after the share prices of stocks closed higher.
Okitipupa Plc gained N5.79 at midweek to close at N63.75 per unit compared with Tuesday’s value of N57.96 per unit, UBN Property Plc expanded by 18 Kono to trade at N2.02 per share versus the preceding day’s N1.84 per share, and Industrial and General Insurance (IGI) Plc jumped by 2 Kobo to finish at 42 Kobo per unit, in contrast to 40 Kobo per unit.
At the close of business, the value of the bourse increased by N3.33 billion to N1.769 trillion from N1.766 trillion and the NASD Unlisted Security Index (NSI) went up by 20.05 points to 3,123.70 points from the 3,117.82 points quoted at the recent session.
During the trading day, Acorn Petroleum lost 14 Kobo to end at N1.40 per share versus N1.54 per share and FrieslandCampina Wamco Nigeria Plc depreciated by 29 Kobo to N39.68 per unit from N38.97 per unit.
The volume of securities bought and sold on Wednesday increased by 3,193.8 per cent to 14.9 million units from the 460,564 units posted a day earlier, the value of shares traded by investors also went up by 78.6 per cent to N30.1 million from N16.9 million, and the number of deals grew by 33.8 per cent to 28 deals from the 21 deals recorded in the preceding trading session.
The most active stock by volume on a year-to-date basis remained Impresit Bakolori Plc with 406.5 million units worth N386.1 million, followed by Industrial and General Insurance (IGI) Plc with 26.3 million units sold for N6.3 million, and Geo-Fluids Plc with 9.2 million units valued at N44.3 million.
Also, Impresit Bakolori Plc was the most active stock by value on a year-to-date basis with 406.5 million units worth N386.1 million, followed by FrieslandCampina Wamco Nigeria Plc with 4.3 million units valued at N170.4 million, and Geo-Fluids Plc with 9.1 million units sold for N44.3 million.
By Adedapo Adesanya
The value of the Naira continued to firm against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) as it strengthened by N11.96 or 0.79 per cent on Wednesday to sell at N1,510.72/$1 compared with Tuesday’s closing rate of N1,522.68/1$.
The recent pressure on the market eased across majorly regulated channels with recent policy moves by the Central Bank of Nigeria (CBN) creating more trading transparency and ethical practices.
Equally, in the official market, the local currency appreciated against the Pound Sterling yesterday by N27.81 to wrap the session at N1,871.77/£1 versus the preceding day’s N1,899.58/£1 and against the Euro, the Naira improved its value by N24.46 to trade at N1,568.58/€1, in contrast to the previous session’s N1,593.04/€1.
In the same vein, the Nigerian currency gained N20 against the greenback in the black market at midweek to quote at N1,620/$1 compared with the preceding day’s rate of N1,640/$1.
A look at the cryptocurrency market indicated that most of the tokens rose as the Federal Reserve kept its benchmark fed funds rate range steady at 4.25 per cent-4.50 per cent, in line with market expectations.
The US central bank said inflation remains “somewhat elevated and this initially dropped Bitcoin and other coins but rose as Chairman Jerome Powell gave his post-meeting press conference.
Litecoin (LTC) grew by 12.3 per cent to sell at $128.55, Bitcoin (BTC) jumped by 2.6 per cent to $105,190.69, Solana (SOL) increased by 2.5 per cent to $238.74, Cardano expanded by 1.8 per cent to trade at $0.9621, Ethereum (ETH) appreciated by 1.6 per cent to $3,190.50, Ripple (XRP) grew by 0.14 per cent to $3.12, and Dogecoin (DOGE) rose by 0.11 per cent to $0.332.
However, the price of Binance Coin (BNB) depreciated yesterday by 0.1 per cent to settle at $677.80, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
The price of the Brent crude grade depreciated by 91 cents or 1.2 per cent to $76.58 per barrel on Wednesday after domestic crude stockpiles in the United States rose in the last week.
Also, price of the US West Texas Intermediate (WTI) crude grade slumped by $1.15 or 1.6 per cent to $72.62 per barrel as the US Energy Information Administration revealed that crude oil inventories in the country grew by 3.5 million barrels in the week ending January 24.
On Tuesday, the API issued its latest estimates on crude oil and crude oil products inventories, showing a rise of 2.86 million barrels for the week ending January 24.
Market analysts noted that near-term oil trade should remain bearish as investors digest the tariff threats, sanctions on Russian energy flows, and economic growth concerns in top consuming nations
The White House on Tuesday reaffirmed President Donald Trump’s plan to impose 25 per cent tariffs on imports from Canada and Mexico from February 1.
Traders are also looking ahead to the ministerial meeting of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) scheduled for February 3, with the group’s plan to increase supply from April in focus.
President Trump called on OPEC+ to lower oil prices last week but the group has yet to respond, but Reuters reported that delegates said policy changes are unlikely at the February meeting.
For analysts at Standard Chartered, OPEC has limited power to end the Russia-Ukraine war immediately through a reduction in the oil price, with OPEC ministers likely viewing this strategy as very inefficient.
OPEC+ members are currently holding back 5.86 million barrels per day of production, or about 5.7 per cent of global demand, after making a series of cuts since 2022 to support the market.
The group plans to start raising production in April, following several delays due to weak demand.
Meanwhile, the US Federal Reserve held interest rates steady on Wednesday and the Chairman if the US central bank, Mr Jerome Powell, said there would be no rush to cut them again until inflation and jobs data made it appropriate.
On the supply front, Libya’s National Oil Corporation said export activity was running normally after it held talks with protesters who had demanded a halt to loadings at one of the country’s main oil ports.
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