Apathy and lack of long-term investments are major factors hindering the development of renewable energy in Nigeria, local daily The Guardian reported, citing Gennex Technologies Managing Director Patrick Ilo.

He said investors still have a lukewarm attitude toward investing in the renewable sector, adding that investors believe the renewable business is “not a profitable venture.”

Commending the government’s efforts, Ilo said that the government had introduced a scheme through the ministry of power to attract zero percent duty on renewable energy materials. 

 “There are lots of tax concessions and tax holidays given to operators in this sector,” he added.

Meanwhile,  Arnergy Solar Chief Commercial Officer Omobola Omofaiye called for Nigeria to invest in a local production of solar products, pointing out that a lot is being spent on importing solar products.

She urged the need for the federal government to incentivise companies and operators, asserting that solar has come to stay, the newspaper reported.

Nigeria, Africa’s largest economy, has installed an electricity capacity of 12,500 megawatts, but the national grid only provides 4,000 MW at peak, leaving businesses and citizens heavily reliant on diesel-powered generators, Reuters reported earlier.

Solar power adoption is estimated at below 2% and some businesses perceive it as unsuitable for large-scale use, the news agency said, citing industry executives.

(Editing by Seban Scaria seban.scaria@lseg.com )