Nigeria’s growth, new technologies and a population density of already more than 230 million people increases its need for energy. Chief Executive, OneWattSolar, Femi Oye, believes the country can achieve more from renewable energy by making available land for plants and ensuring utilities have the means to buy in clean energy. He shares his thoughts on this and other issues in this interview with DANIEL ESSIET.
Nigeria is facing huge economic challenges, including power supply inadequacies. What would you recommend?
The last 15 years have thrown up key challenges for the economy. They are many – inability to regulate the financial market, leading to unprecedented market failure, erosion of our currency value in the market. The Central Bank of Nigeria (CBN) has done all within its power to stabilise the Naira. It raised interest rates drastically.
Despite these measures, the economy has not delivered the best results. We are confronted with increasing debts and higher borrowing costs, which have further exacerbated the nation’s budget constraints. As entrepreneurs, we find it difficult to keep our investments in the face of rising interest rates. The consequences are endangering our economic future.I understand the straits the government has found itself. I hope the government takes a better long-term perspective that will occasion a paradigm change soon. I also hope the market dynamics deliver the best results. The interest rates are quite high. The exchange rate of the Naira hurts small businesses that source their raw materials abroad. I expect the government to do more to incentivise investments to boost economic growth. I will advise the government to accelerate debt restructuring and to put the country back on a more sustainable path in a few years’ time. It is quite excruciating doing business in our circumstances, given the unique dysfunctions of our power sector.
Are you satisfied with the level of energy supply implementation?
Each day, we see electricity distribution companies struggling to keep the lights on. I would recommend a sustainability plan where deeper reforms to the power sector will support the adoption of renewable energy solutions. Because of the fact that so many rural areas are not connected to the national grids, I believe a massive renewable framework can efficiently service larger geographic areas and more reliably displace expensive and polluting fossil fuels. Our approach to managing the grids may not lead to a sustainable end.There is no guarantee that grids will still ensure stable and reliable supply of power in the long term. The rapid fluctuations drama posed by the national grid make it challenging for the providers to efficiently source and dispatch generation capacity across the country. Honestly, the enduring dysfunction of our power supply is, perhaps, one of the most important barriers to the country’s economic development. I would expect more investments in transmission infrastructure necessary to address frequent shortfalls.The next stage for me should be a planned transition to clean energy, including the continued construction of green energy corridors capable of carrying large amounts of energy from one state to another. The time to reform the power sector is now. The incentive is that the power sector is a drag on economic growth.
Having been part of global efforts to expand the circular economy, would you say Nigeria’s future prosperity hinge on affordable, clean and reliable energy?
Yes. Energy use has increased tremendously. To meet growth in electricity demand over the next few years, Nigeria would need to add a power system to cope with an expanding economy and population. The rising demand is going to put a huge stress on the already fragile and weak grids. Other countries such as Morocco are seeking ways to accelerate the pace of transformation in the energy sector. Morocco is pioneering a new model for low carbon, inclusive growth. Nigeria should follow suit by adopting a mixed energy formula which supports a sustainable development scenario gravitating towards net-zero emissions. If this can be done, Nigeria would be reckoned with globally for pursuing a robust economic transformation that is compatible with the increasing pace of emissions reductions agenda being driven across Africa.
How should the government design its green growth agenda in such a way that the transition to renewable energy is cost-effective and sustainable in the long term?
Even though Nigeria is energy rich, poverty remains a big challenge.The Integrated Energy Policy review estimated that the country will need to increase the supply of renewable electricity from 13 per cent of total electricity generation today to 23 per cent in 2025 and 36 per cent by 2030. Renewable electricity would then account for 10 per cent of Nigeria’s total energy consumption by 2025. I am very convinced we have the local expertise and intelligence to develop our response to meet the expectations of the Paris Agreement. We should pursue a pragmatic plan that boosts energy supply as well as support Nigeria ’s Nationally Determined Contribution (NDC) to the United Nations Framework Convention on Climate Change (UNFCCC). Renewable energy can help Nigeria not only meet its energy needs, but also power sustainable economic growth and create jobs while achieving global climate and sustainable development objectives. We should start with an adjustable road map, setting achievable targets for clean energy adoption on a yearly basis. Making reasonable investments in clean energy should be a priority as the government and the private sector work towards grid integration of renewable energy resources in a manner which provides Nigerians with a stable and reliable supply of power to meet their energy demands, whether in the cities or rural areas. The administration should work with energy services providers to ensure they invest significant resources to maintain power generation and transmission equipment and infrastructure as well as minimising electricity rates.
The Lagos State Government has launched a set of electric buses to focus on electric mobility. Do you see a future for the electric vehicles (EV) sector in Nigeria?
With Lagos launching electric buses provides the next shift for new opportunities and business models to herald eMobility and electric storage platform focus. Already, I am very optimistic about the prospect of the industry going through increased efforts to tackle the power supply situation and increasing cost of oil globally. With the government providing the enabling environment, more investors will emerge to take the electric cars business seriously. Nigeria is the microcosm of the developing world. Given a very supportive government, it is an opportunity for Nigerians to think about a functional electric automotive industry, driven by new technologies and a platform to build different product segments on it. On our own, my vision is to partner the government to establish a smart city with infrastructure to support solar-powered vehicles. As you are aware the transport sector is still responsible for around a third of global carbon dioxide (CO2) emissions worldwide. We have to do something to achieve our decarbonisation targets, significantly decreasing the emissions associated with mobility. Our grand plan is to collaborate and partner with institutions that are interested in integrating photovoltaic modules into electric vehicles, solar cars and eCharging stations. This will go a long way in reducing CO2 emissions associated with transportation. Lagos is already creating the market for electric vehicles. In future, the government will be interested in solar-powered vehicles assembly plants in urban states. We have conducted studies with international partners towards establishing a roadmap for policymakers and the automotive industry to accept electric vehicles. This is part of our campaign to accelerate the transition to a more sustainable and environmentally friendly urban future. As a firm, we are very technology centric. We are focused on energy technology. What Nigeria needs is infrastructure to support EV cars, specifically charging stations across the country. It is only when we have enough charging infrastructure that people will be motivated to buy EVs.
What do you think will be the key to transitioning the trucking industry to battery-electric and fuel cell trucks?
I believe we need to come to terms that we need zero-emissions vehicles to reduce pollution on our roads both at policy and business decision level. Look at the amount of emission from diesel powered cars. Indeed, EVs are very expensive. I see a lot of wealthy Nigerians acquiring EVs for health reasons. A few significant health benefits provided by electric vehicles include the reduction of Internal Combustion Engine Vehicle (ICEV), greenhouse gases (GHGs and air pollutants such as carbon dioxide (CO2), nitrogen oxides (NOx) and most of the particulate matter (PM) from the air. According to the World Health Organisation, air pollution kills a shocking seven million people a year. Air pollution triggers asthma, allergies, respiratory illnesses, Chronic obstructive pulmonary disease(COPD), and even lung cancer. We have to tackle direct emissions such as nitrogen oxides and other pollutants that are harmful to human health, and greenhouse gases (GHGs), primarily carbon dioxide. The more electric vehicles in the system, the greater success we would have recorded producing zero direct emissions, which specifically helps improve air quality in urban areas. I must mention here that all emissions don’t come from the use of the vehicle. They come from creation, drilling, processing, distribution, and use of petroleum, and waste products created from batteries. We have to switch to renewable resources, such as wind, water, or solar power. With EVs, public health benefits of reduced air pollution exposures are substantial. We want to see a better environment with capability to support production of zero emissions of any kind. Our organisation is committed to innovation that enhances green energy usage beyond transportation, cold storage, farming thereby opening up opportunities in an ever widening array of sectors. We recognise the need to cut emissions and encourage the use of biofuels.
You have been a pioneer of the voluntary carbon credit market, how is this a transformational tool to help transform our economy?
Whether first or second-world countries, the call to combat climate change is becoming very pertinent as nations explore innovative solutions to curb their carbon emissions. The concept of carbon credits emerged over a decade ago and today the voluntary emission accounting methodology is mainstream and our GB carbon market is enhancing the listing of such quality offset certificates. As the demand for carbon offsets soars, we see more companies seeking carbon credits to help meet net-zero emission goals. Carbon credits also known as offsets are purchased by individuals, companies or corporations to make up for carbon dioxide emissions that come from industrial production, delivery vehicles or travel.
We have been promoting voluntary carbon as a crucial part of our campaign to tackle climate change by encouraging companies to offset a portion of their emissions.
Carbon credits are financial incentives provided to organisations engaged in sustainable business practices and climate action under the Paris agreement to reduce carbon emissions, and corporate sustainability goals.The Nigerian market is also gearing up for a number of initiatives to help companies explore carbon credits and get funding for projects that demonstrate carbon capture offsets. Globally, the market for carbon credits is worth more than $50 billion yearly. We can assist Nigerian organisations with information and guidance to carry out projects that genuinely help them achieve their net zero goals.
A lot of social enterprises and renewable energy entrepreneurs are involved in the promotion of electricity access and clean cooking. What is the relationship?
There is a nexus between the two areas. Globally, the use of traditional cooking fuels costs the government and the private sector an estimated $2.4 trillion per year.This is in terms of associated health problems, lost productivity, and climate-driven damages.The figure may be higher. Sadly, in many countries where the impact is severe in Nigeria and other third world countries, approximately 733 million people don’t have access to form of electricity in sub-Sahara alone. Don’t forget that clean cooking and closing the electricity access gap are two of the key targets of the seventh United Nations Sustainable Development Goal, which calls for “access to affordable, reliable, sustainable, and modern energy for all” by 2030. We are involved in clean cooking and electrification, because we promote solar energy. However, I know that each area attracts a different set of stakeholders. A few in clean cooking and a large number in the renewable energy power business.We believe that promoting access to both renewable electricity and clean cooking options would go a long way toward helping Nigeria and the rest of Africa tackle its energy, climate, and development challenges. Under OneWattSolar (OWATTS), we connect entrepreneurs with lofty ideas on how to use solar solutions to solve problems with impact-driven social investors who are willing to provide the funds for such projects. We provide a one-stop shop for solar energy, taking care of everything from financing to installation to maintenance. Right now, companies can earn credits through the compliance market, where high emission industries are required by regulators to reduce greenhouse gasses. The other way is through the voluntary market, if they agree to offset their emissions by choice, not mandated. Most energy-efficient cook stoves projects in Nigeria and the rest of Africa are funded by carbon credits, thereby reducing carbon emissions and improving quality of life.
Gombe /////////////////
Gombe’s revenue generation sees 78.3% increase with Recovery Tribunal
Gombe State has seen a significant increase in revenue generation, going from N10.6 billion to N18.9 billion between October 2022 and September 2023. This 78.3% increase is thanks to the Revenue Recovery Tribunal that was set up by the state government.
The Revenue Recovery Tribunal was established to recover revenue owed to the government by individuals and organisations. The tribunal has been successful in recovering funds from defaulters who had previously ignored payment obligations. This was disclosed by the state governor, Muhammadu Inuwa Yahaya while speaking during the court sitting/stakeholders appreciation to mark the one year anniversary of the Revenue Recovery Tribunal.
Represented by his deputy, Dr. Manassah Daniel Jatau, the governor said that the work and activities of the court have been transparent.
He disclosed that the revenue recovered by the court has helped to strengthen the state’s finances and that it will be put towards funding various development projects.
He said: “To God be the glory and gratitude for granting us the privilege to witness this one-year anniversary of the Gombe State Revenue Recovery Tribunal which is a very important tool in the improvement of revenue aspect in governance the world over.
“While the drive for revenue generation, collection, and utilisation has been the magnet towards which leaders are attracted, the administration under the transparent, accountable, and good governance of His Excellency, Muhammadu Inuwa Yahaya saw the compelling need to set up the Gombe State Revenue Recovery Tribunal. Records available, indicate that this is the first of such in the Northeast geo-political zone”.
“Basically, this tribunal was conceived and created to avoid the situation of a master-servant relationship between those who govern and being governed. Hitherto issues were just presented to members of the public without being given the chance or opportunity to make observations, comments, or complaints as the case may be. This is horrible and inhuman. Common to those implementing government policies is the quick reference to the dictum. Under such circumstances, people are compelled to carry burdens/yokes that are beyond them.
“Accordingly, this tribunal gives rights and privileges to all those involved in the payment of revenue to the state to seek redress on the criteria/reasons for the demand of the revenue so demanded by the state government. Indeed, they can dialogue with members of the tribunal to understand each other, but based on mutual understanding by the parties. Where they are not satisfied, they can always appeal to higher government officials, where dispute resolution will be implored,” the Governor added.
Speaking earlier, the Secretary of the Tribunal, Hannatu Dauda Simon said the event was to mark the first anniversary of the Revenue Recovery Tribunal and to use the opportunity to appreciate the Stakeholders for contributing to the success of the tribunal.
She said at the inception of the tribunal, people thought it was meant to witch-hunt others but with sensitisation, they are now well abreast of the role of the tribunal and the importance of payment of tax.
In his remarks, the former Chief Judge of Gombe State, Justice Joseph Ahmed Awak, expressed his gratitude for the progress realised by the Revenue Tribunal within its one year of existence. He said that by their performance it has shown that the aim and purpose of establishing the tribunal under his watch at the eve of his retirement has proven its worth.
Awak stressed the need for the staff to maintain such tempo to complement the efforts of the state government under the leadership of Governor Muhammadu Inuwa Yahaya to achieve its desired goals in providing dividends of democracy to the people of Gombe State, calling for the need to ensure that the tribunal is sustained to greater heights.
