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 closed flat on Wednesday, August 5, as the market witnessed weaker trading activity with only two deals executed.
In the midweek session, the volume of securities exchanged by investors dropped 99.9 per cent to 802 units from the 1.6 million units recorded on Tuesday. The value of securities further decreased by 99.6 per cent to N208,240 from the preceding session’s N47.6 million, and the number of deals significantly went down by 93.9 per cent to two deals from the 33 deals recorded a day earlier.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 76.9 million units transacted for N5.5 billion.
GNI Plc was also the most active stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
There were no price gainers or losers yesterday.
As a result, the market capitalisation stood unmoving at N2.739 trillion, while the NASD Security Index (NSI) remained unchanged at 4,563.96 points.
By Adedapo Adesanya
The Naira slid against the US Dollar by N2.28 or 0.17 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, August 5, to N1,363.85/$1 from N1,362.55/$1.
The local currency also declined against the Pound Sterling in the official market during the session by N5.97 to close at N1,837.38/£1 compared with Tuesday’s closing rate of N1,831.41/£1, and against the Euro, it crashed by N6.54 to quote at N1,575.25/€1 versus the preceding session’s N1,568.71/€1.
But at the black market, the Nigerian Naira traded flat against the greenback yesterday at N1,400/$1, and also remained unchanged at the GTBank FX desk at N1,373/$1.
The Central Bank of Nigeria (CBN) says rates have narrowed to below two per cent, while the country’s external reserves have risen above $52.5 billion, reflecting the impact of its ongoing monetary and foreign exchange reforms.
CBN Governor Yemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Mrs Hakama Sidi-Ali, disclosed this on Tuesday during the CBN Fair in Gombe. He noted that reforms introduced since 2023 had significantly reduced the disparity between the official FX market and the parallel market.
“The Naira continues to strengthen, with the spread between official and Bureau de Change rates now below two per cent,” he said, adding that reserves at $52.5 billion were supported by sustained inflows and renewed investor confidence in the economy.
Interbank FX transactions slid as weaker market activities dropped total Dollar volume exchanged to $75.35 million, a 51.8 per cent decline from $156.23 million in turnover quoted at the previous close.
The deals at the NFEM window also fell as data from the central bank put Wednesday’s quote at 82 from 139.
In the cryptocurrency market, major were down as global risk sentiment softened as a key world equity index slipped and chipmakers fell.
The MSCI All Country World Index snapped a five-day run to fall 0.2 per cent as chipmakers retreated on both sides of the Pacific. South Korea’s Kospi, a bellwether for the AI trade, dropped 4.4 per cent.
Ripple (XRP) depleted by 1.7 per cent to $1.05, Binance Coin (BNB) decreased by 1.0 per cent to $594.87, Cardano (ADA) depreciated by 0.9 per cent to $0.1884, TRON (TRX) shrank by 0.2 per cent to $0.3261, Solana (SOL) crumbled by 0.1 per cent to $74.00, and Dogecoin (DOGE) went down by 0.1 per cent to $0.0697.
On the flip side, Ethereum (ETH) gained 2.3 per cent to trade at $1,911.41, and Bitcoin (BTC) rose by 0.8 per cent to $64,759.28, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
The domestic stock exchange rebounded by 0.05 per cent on Wednesday on the back of renewed bargain-hunting by investors, though the level of activity waned.
After bleeding for a few days, the Nigerian Exchange (NGX) Limited heaved a sigh of relief yesterday, as the All-Share Index (ASI) gained 109.41 points to close at 244,912.24 points compared with the previous day’s 244,802.83 points, and the market capitalisation garnered N71 billion to settle at N158.087 trillion versus Tuesday’s N158.016 trillion.
Business Post reports that despite the rebound recorded by Customs Street at midweek, the market breadth index remained negative, as there were 20 price advancers and 29 price decliners, implying bearish investor sentiment.
Linkage Assurance appreciated by 9.94 per cent to N1.77, AVA Capital rose by 9.55 per cent to N10.90, Fortis Global Insurance advanced by 7.69 per cent to N2.80, McNichols gained 7.34 per cent to finish at N5.85, and Coronation Insurance surged by 5.51 per cent to N2.49.
Conversely, Honeywell Flour depreciated by 9.94 per cent to N16.30, PZ Cussons gave up 9.94 per cent to trade at N74.75, Zichis crashed by 9.74 per cent to N20.76, Learn Africa slipped by 9.62 per cent to N9.40, and Neimeth tumbled by 8.33 per cent to N8.25.
The busiest equity was FCMB, with a turnover of 369.2 million units valued at N4.1 billion. Chams transacted 46.7 million units worth N201.8 million, First Holdco transacted 43.5 million units for N5.7 billion, Access Holdings sold 29.8 million units worth N778.0 million, and Linkage Assurance exchanged 19.6 million units valued at N33.5 million.
At the close of transactions, market participants bought and sold 824.1 million units worth N25.5 billion in 48,114 deals, in contrast to the 1.6 billion units sold for N28.7 billion in 54,160 deals a day earlier, showing a shortfall in the trading volume, value, and number of deals by 48.49 per cent, 11.15 per cent, and 11.16 per cent, respectively.
