Nigeria Has Capacity To Generate 9,000mw Through Renewable Energy By 2030 – Adaju

Dr. Segun Adaju

CEO, Consistent Energy

Dr. Segun Adaju, the Chief Executive Officer of Consistent Energy, emphatically asserted that Nigeria can fulfill the renewable energy objective outlined in the country’s Energy Vision 2030. During the sidelines of the 29th edition of the Nigerian Economic Summit Group (NESG), Adaju expressed his belief that achieving the target of generating 30,000 megawatts by 2030 is well within reach, with renewable energy accounting for 30 percent of this total. He underscored the critical need for increased private-sector sector investments to realize this ambitious goal effectively.

Adaju elaborated, “A multitude of intertwined factors emerged from the panel session, demonstrating that a singular technology alone will not suffice. That’s why Nigeria has set its sights on 2030, with a target of 30,000 megawatts, of which 30 percent will be derived from renewable energy sources. While we will continue to harness our abundant gas resources, we will also witness the emergence of power plants leveraging high hydrochloric technology and other innovative solutions. To rapidly achieve the desired scale, we must embrace a diverse blend of technologies that prioritize the growth of renewable energy.”

“Most of the renewable energy projects going on in Nigeria are led by the private sector. I’ve seen a lot of mini bases springing up in rural communities in Nigeria funded and powered by private sector investments. We need the private sector. Regarding the required investment, investment flows to any market where it is guaranteed to return and safety. That means if I invest in your economy, you can guarantee that I can have my funds and profitability when I want to exit.

“Once those two factors are cleared, investment will come. Seeing in Nigeria that the market is vast, I always say that if we must build this market, it’s in the pocket of Nigeria. For example, we average $14 billion to $16 billion yearly and spend on fuel for generators. As a businessman, I develop a business model that will switch this spending to pay for my solar technology, and then, I prove that model and raise investment against it.

“So, I raise a pool of investment, say one billion dollars, and I get my money in 10 to 15 years because Nigerians are already spending that amount on fuel generators. Just a remodeling of that financing structure, the required investment is available globally, and Nigeria needs to create a scenario where investment can flow into Nigeria. I mentioned the security of the investment and returns.

“The first security issue to consider beyond that do the road is that if I want to pull out an investment I made in dollars when I want to take my money out, will I have access to dollars and at what rate? The issue of foreign exchange currently is a big challenge. The current exchange rate in Nigeria’s mad devaluation is happening daily; it’s scary.

“The second is returns. If I bring in one dollar today at 1000 naira and I do my business, if I want to take my money out and the dollar is already 1200, then I’m at a loss because I need 1200 to buy that one dollar that I brought in at 1000. Returns are affected. Those are two critical issues, which is why the elephant in the room that everybody is talking about is the foreign exchange rate in Nigeria. Once we can do that, investment will flow into Nigeria. Nigeria has one of the biggest markets for renewable technologies in sub-Saharan Africa.”

Adaju said Nigeria can power the country through renewable energy if investments in the right technologies are made. He reiterated that developing and deploying renewable energy facilities is easier and cheaper.

“I know that Nigeria can power itself if we have the right means of technologies, including hydro and renewables. Renewable energy is a technology you can quickly deploy, and it takes two hours for my team to go into an SME and deploy solar solutions and put them on.

“That’s what we need to do in rural communities where the grid is not currently existing. Getting a grid to an off-grid rural community might take another ten years and high resources. But you can power that community with a mini grid in two months, for example. You lay your panels, do some transmission lines, and you can connect the community. And they are connected, and they can be productive. Globally, the world is talking about energy transition and climate change issues, so yes, Nigeria has that resources and should deploy it,” he said.