Key players in Nigeria's energy sector have issued a strong call for increased collaboration, innovation, and targeted funding to speed up the country's shift toward renewable energy sources and ensure sustainable power reaches all citizens.
High-Level Forum Drives Energy Transition
The urgent appeal emerged during the two-day Nigeria Renewable Energy Innovation Forum (NREIF) organized by the Rural Electrification Agency (REA) in Abuja with support from First City Monument Bank (FCMB). The event gathered policymakers, private sector representatives, equipment manufacturers, and development partners to formulate strategies for boosting local manufacturing, financing, and distribution of renewable energy solutions across the nation.
Vice President Kashim Shettima emphasized the crucial role of private sector involvement in driving Nigeria's energy transformation. He challenged stakeholders to embrace the "Nigeria First" policy by prioritizing local content development and investments that support homegrown renewable energy solutions.
"We are improving local manufacturing incentives, refining regulatory frameworks, and enhancing collaboration with state governments and investors to help de-risk private capital and accelerate the growth of a sustainable renewable energy market," the Vice President declared.
Transforming Solar Potential into Economic Gains
Abba Aliyu, Managing Director and CEO of REA, reinforced the need for Africa's inclusion in global energy transition conversations. He stressed that Nigeria's abundant renewable resources, particularly solar energy, must be converted into concrete industrial and economic benefits.
"Africa has nearly 60 per cent of the world's best solar resources but attracts less than three per cent of global renewable energy investment," Aliyu noted. "The task ahead is clear: we must transform this advantage into a competitive edge by building industries, fostering innovation, and creating local value."
Financial Innovation Powers Renewable Expansion
Providing a private sector perspective, George Ogbonnaya, Divisional Head of Business Banking at FCMB, highlighted the essential role of financial innovation and public-private partnerships in scaling renewable energy adoption.
"Nigeria's renewable energy transition demands shared commitment. Unlocking over $400 million in investment will require strong government and private sector collaboration to expand access, accelerate local manufacturing, and strengthen energy infrastructure," Ogbonnaya explained.
FCMB has demonstrated its commitment through concrete actions:
- A strategic collaboration with REA to provide a N100 billion loan facility aimed at delivering power to two million households in underserved communities under the Distributed Access through Renewable Energy Scale-Up (DARES) programme
- Energy finance loans of up to N30 million for small businesses to acquire clean energy equipment including solar panels, batteries, and inverters with repayment plans extending to three years
- Support for the entire renewable energy value chain through project financing and capacity-building initiatives for both developers and end-users
The bank recognizes the significant impact of energy costs on small enterprises and has committed to addressing this challenge by making larger financing amounts available for medium-sized businesses seeking to transition to clean energy solutions.
