The Climatescope Africa Coordinator, Bloomberg New Energy Finance (BNEF), Mr. Nico Tyabji. has indicated in an interview with Vanguard, that there is now a big opportunity for Nigeria to embrace the clean energy revolution, while stressing the need for more investments in energy infrastructure to fast track socio-economic development in Nigeria.
With regard to attracting more private sector involvement into the renewable energy sector, Tyabji said feed-in tariffs were crucial as this guarantees the price that solar, wind and other projects will be paid for the power they produce. Nigeria has had one for a little while he said, but there’s been no activity because it was seen as too risky. He noted that the regulator (NERC) last November, approved new regulations, and if they get it right there will be a lot of interest from the private sector.
He also said Nigeria has had very little investment in clean energy so far, but finished 4th for Africa on the Climatescope list, because it actually has some good conditions in place to attract investment into clean energy. He also noted that apart from the feed-in tariff, Nigeria has a range of policies – from renewable energy targets to soft loans to a biofuels blending mandate to encourage the development of renewable energy but the major problem is that many of them are not operational. As such, he said the government has a job to do to clarify to the private sector exactly how these things work and whether they’re in force yet, because at the moment there’s a lot of confusion.