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 Modupe Gbadeyanka
The federal government, the 36 states of the federation and the 774 local government areas have received N1.727 trillion from the Federal Accounts Allocation Committee (FAAC) for December 2024.
The funds were disbursed to the three tiers of government from the revenue generated by the nation in November 2024.
At the December meeting of FAAC held in Abuja, it was stated that the amount distributed comprised distributable statutory revenue of N455.354 billion, distributable Value Added Tax (VAT) revenue of N585.700 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.046 billion and Exchange Difference revenue of N671.392 billion.
According to a statement signed on Friday by the Director of Press and Public Relations for FAAC, Mr Bawa Mokwa, the money generated last month was about N3.143 trillion, with N103.307 billion used for cost of collection and N1.312 trillion for transfers, interventions and refunds.
It was disclosed that gross statutory revenue of N1.827 trillion was received compared with the N1.336 trillion recorded a month earlier.
The statement said gross revenue of N628.972 billion was available from VAT versus N668.291 billion in the preceding month.
The organisation stated that last month, oil and gas royalty and CET levies recorded significant increases, while excise duty, VAT, import duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and EMTL decreased considerably.
As for the sharing, FAAC disclosed that from the N1.727 trillion, the central government got N581.856 billion, the states received N549.792 billion, the councils took N402.553 billion, while the benefiting states got N193.291 billion as 13 per cent derivation revenue.
From the N585.700 billion VAT earnings, the national government got N87.855 billion, the states received N292.850 billion and the local councils were given N204.995 billion.
Also, from the N455.354 billion distributable statutory revenue, the federal government was given N175.690 billion, the states got N89.113 billion, the local governments had N68.702 billion, and the benefiting states received N121.849 billion as 13 per cent derivation revenue.
In addition, from the N15.046 billion EMTL revenue, FAAC shared N2.257 billion to the federal government, disbursed N7.523 billion to the states and transferred N5.266 billion to the local councils.
Further, from the N671.392 billion Exchange Difference earnings, it gave central government N316.054 billion, the states N160.306 billion, the local government areas N123.590 billion, and the oil-producing states N71.442 billion as 13 per cent derivation revenue.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
By Adedapo Adesanya
The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.
The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.
Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.
In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.
At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.
Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).
Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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