April 16, 2024

Nigerian Government lures renewable energy investors with policy incentives to drive energy access 

Oredola Adeola

As part of efforts aimed at paving the pathway for the attainment of the full potential of Nigeria’s Energy Transition Plan(ETP) and the renewable energy industry,  the Nigerian Government has assured investors of a consistent and well-structured regulatory and policy framework to limit their exposure to some of the bottleneck associated with the power sector.

Engr. Abubakar D. Aliyu, Minister of Power, represented by  Temitope Fashedemi, the Permanent Secretary, Ministry of Power, made this commitment, in his opening remark while speaking to renewable energy developers and investors, during the Nigeria Energy Conference, in Lagos.

According to the Power Minister,  policies are well structured to guarantee affordable, reliable, and sustainable alternative power sources to address the country’s energy deficit.

The major renewable policies developed by the Federal Government according to the Minister include; the national renewable energy and energy efficiency policy, national renewable energy action plan, national energy efficiency action plan, and sustainable energy for all action agenda.

Engr. Aliyu in his speech said, “Access to energy enhances the socio-economic development of human existence. Our economic prosperity requires a higher energy capacity than what we currently have.

“Our unmet energy needs are huge and will increase due to factors such as rising population, urbanization, and others. Consequently, enabling policy, targeted infrastructural development, innovative financing options, and investments in technologies are key.

The Minister confirmed that the sustainability and survival of the renewable energy industry lie in the institutional collaboration between the private sector and the Government.

According to him, the stakeholders have an important role to play in attainment of Nigeria’s energy access goals.
He said, “Collaboration with the private sector and development partners is essential in accelerating our efforts towards sustainable energy supply.

“We will provide an investment-friendly environment through the right policies and incentives.

Speaking about the incentives to drive investment opportunities in the renewable energy space, Engr. Aliyu said,  tax and duty waivers, competitive procurement of renewable energy projects, feed-in tariffs, and viability gap funding, are some of the fiscal incentives established to encourage all potential investors.

Engr. Aliyu however emphasised that friendly policies and regulations, right investments, and government incentives to players are the three major drivers of the power sector.