RENEWABLE ENERGY INVESTMENT IN NIGERIA – PROSFECT AND CHALLENGES By: Mr. Lawal Y. Gada Project Manager BOI/UNDP AtRE Project

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RENEWABLE ENERGY INVESTMENT IN NIGERIA –
PROSFECT AND CHALLENGES
By:
Mr. Lawal Y. Gada
Project Manager
BOI/UNDP AtRE Project
lygada2001@yahoo.com; lgada@boinigeria.com
Tel: 08035854295, 08026500526
RE Investment in Nigeria – Prospects and Challenges
by: L.Y. Gada.
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3. SYNOPSIS
Introduction
Why Renewables?
Global Perspectives
Africa’s Overview
RE investment in Nigeria
Prospects & Challenges
Way Forward
RE Investment in Nigeria – Prospects and Challenges
by: L.Y. Gada.
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4. Introduction
• The potential of Renewable Energy (RE) investment in Nigeria is
very enormous . This is due to the obvious gab in the supply of
conventional energy coupled with global covenants for Climate
Change mitigation and adaptation which tends to promote
Renewable Energy development as alternative to conventional
fossil fuels that releases Greenhouse Gases (GHG) into the
atmosphere, the opportunities for RE investment therefore cannot
be overemphasised.
• There is no doubt that country has abundant renewable energy
resources such as higher intensity solar energy resource throughout
the country; large forest and farmlands that can be used to cultivate
plants like Jatropha curcus for bio-fuels; wind energy potentials;
large number of dams and other water resources that can generate
energy through hydropower generation most of which are underexploited.

5. Introduction Cont...
• The global Investment in Renewable Energy across the
globe is increasing significantly from $33 billion in 2004
to $211 billion as of June this year, 2011. In Africa, total
investments in renewable energy on the continent rose
from $750 million in 2004 to $3.6 billion in 2011, largely
due to strong performance from Egypt and Kenya which
are in the Northern and Eastern parts of the continent.
• In Nigeria, investments in renewable energy have a large
potential for growth given the large gap between energy
demand and supply and the enormous renewable energy
options available. This gab can only covered by we (the
stakeholders here present: financial institutions and RE
service providers).

6. Why Renewables
• Global Warming/Climate Change – UNFCCC Kyoto Protocol
• Depletion of fossil fuels (petroleum, coal, etc) – Energy
Security;
• Escalating costs of conventional sources of energy;
• Environmental protection;
• Need to achieve key Millennium Development Goal
(increased access to electricity).
• Africa has the lowest per capita consumption of energy in
the world;
• Africa’s average energy consumption per capita: 0.66 Tons
of Oil Equivalent (TOE) vs 1.8 TOE world average (est. 2008)
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7. Why Renewable Energy Options?
• The option to close the wide energy demandsupply gap is Renewable Energy.
• This is energy supply options from natural
resources which can be replenished (infinite
and renewable)
• Sources
include
sun, wind, biomass, hydro, geothermal etc.
• These sources are found in abundance in
Nigeria and it has been estimated that the
potential energy that can be generated from
these sources is about 600,000 MW.

8. Barriers to Investment in Renewable
In Nigeria
 Sustainability question.
 Maintenance
 Procurement
 Branding
 Risk Associated with
 Security risks
 Project risks
 Human/personnel risks
 Technical risks
 Political risks
 Policy –law to promote Renewable Energy Options

9. Barriers to Investment in Renewable
In Nigeria (Cont...)
Knowledge/awareness
 Knowledge to the financial institutions
 Awareness by the general public on RETs
Capacity
 Technical know-how by the service
providers
 Knowledge by the policy makers
Lack of incentives

10. Way forward
Policy to promote investment in RETs
Capacity Building for Financial Institutions
and RE Services providers
Enlightment campaigns to create awareness
Synergy between the different financial
institutions and Development finance
institutions
Exploring other funding sources like
CDM, CIF, CEF, etc.

11. Thank you
Lawal Y. Gada.
Project Manager
BOI/UNDP AtRE Project
lygada2001@yahoo.com
Tel: 08035854295, 08026500526.

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Access to Renewable Energy (AtRE) Project
• AtRE Project was initiated in continuation of UNDP’s
support to Private Sector (MSMEs) Development and
UN’s commitment towards ensuring universal access to
modern energy services.
• BOI was chosen as the Implementing Agency (IA) for the
project because of its strategic position between the
Financial Institutions, MSMEs and Government.
• The UNDP/BOI AtRE is an intervention project aimed at
expanding renewable energy services for rural and periurban MSMEs.
• The Project is to facilitate investment in renewable
energy options and linkages for enterprise development.

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Expected Outcomes of (AtRE) Project
• Improve access to reliable and renewable
energy service options for MSMEs
• Develop capacity of stakeholders to facilitate
investments in renewable energy sector
• Establish and maintain policy level dialogue.

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Deliverables of (AtRE) Project
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Increase the number of RE projects in Nigeria
Increase the level of RE services accessed by MSMEs
Train and build the capacity of project developers
Train and build the capacity of financial institutions
Capacity development and support for public policy
formulation and development at Federal and State level
• Develop guidelines and tools based on best practices for
disseminating
information
to
project
developers, financial institutions and policy makers
• Dialogue to influence RE policy development
• Dialogue to support RE energy planning

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Benefits of (AtRE) Project
• Economic development through empowering
MSMEs
• Job creation
• Poverty alleviation
• Financial Inclusion
• Achieving the MDGs
• Improving the environment
• Reducing rural-urban migration

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Project Board
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Ms. Evelyn Oputu, MD/CEO BOI Board Chairperson
Mr. Ade Mamonyane Lekoetje, Country Director UNDP
Janthomas Hiemstra, Deputy Country Director UNDP
Dr Patrick Kormawa, UNIDO Rep in Nigeria & Director Regional Office
Honourable Minister of Finance
Mr. Kingsley Moghalu, Deputy Governor, Financial System Stability, CBN
Prof. A.S. Sambo, DG/CEO Energy Commission of Nigeria & SA to the President on
Power
8. Engr Mrs. Bahijjahtu Abubakar, National Coordinator, National Renewable Energy
Project
9. Chief Kola Jamodu, Chairman Manufacturers Association of Nigeria (MAN)
10. Mr. Aigboje Aig-Imokhuede, MD/CEO Access Bank Plc & Chairman, SubCommittee on Economic Development, Bankers’ Committee
11. Alhaji Aliko Dangote, Chairman Dangote Group of Companies
12. Lawal Gada, Project Coordinator, AtRE

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AtRE Project Activity Update
• Project officially launched and document signed – June
16, 2011
• PMU Management Team recruited and commenced
implementation of project in September, 2011
• Organised State-level stakeholder forums and compilation
of database of stakeholders in RE in 10 states + FCT in
October 2011
• Launched the BOI/UNDP/State Energy Access Challenge
Facility for Enterprises – Oct-Nov, 2011. where winning
applicants accessed a grants of up to US$30k
• Engaged NABTI/ECN to create an interface between
research institutes and industries in renewable energy
best practices

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AtRE Project Activity Update
• Working with Scheider Electric to Replicate and
commercialise the ‘Access to Energy’ program launched
in Asore Village, Ogun State for BoP with Support from
BOI
• Conducted different RE Training programme for Capacity
Development for our stakeholders: eg. Banks, RECs, MFI.
• Engaging with the Policy makers at State and Federal
Level to increase activity in RE
• Evaluating potential RE project proposals for prospective
funding
• Initiating collaborations with development institutions
such as KfW, Adaptation funds, IFC, ADB, World Bank, etc
to increase the level of renewable energy funding

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AtRE Project Activity Update
• Engaged consultants and service providers to
conduct Business Plans and Feasibility studies to
different RECs, especially the winners EACFEs
• Working with Renewable Energy Programme of
Federal Ministry of Environment to deliver energy
solutions to various states in Nigeria including
women through – Rural Women Energy Security
(RUWES) Initiatives.
• Identifying clusters of MSMEs to deploy creative
Renewable energy services

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AtRE Project Activity Update
• Developed a comprehensive communication plan
towards increasing awareness of rural MSMEs and
households to adopting renewable energy options
• Conducted studies on the Comparative cost between
RE and Fossil Fuels such as Petrol and Diesel
• Engaged consultants who conducted the mapping of
banks activities in renewable energy finance
• Engaging with MFIs to develop financial products to
deploy RE solutions for BoP
• Holding an Investment Forum, December 15, 2011

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BoI and Renewable Energy
• In partnership with Ebonyi State and UNIDO in the
development of a 5MW biofuel RE Plant using Rice
Husk
• This project will serve a cluster of MSMEs who are
engaged in Rice processing
• BOI is collaborating with various state governments
such as Ondo, Osun, Kwara and Niger in areas of
small hydro power projects to serve clusters of SMEs.
• Provisions of financial support for clusters of
cooperatives who ordinarily have been excluded
from access to finance due to collateral constraints
• Facility for the Bottom of the Pyramid (BoP) -RUWES

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Challenges
• Standards for Renewable Energy Products
• Technical Know-how (capacity of the industry
player)
• Financing by Commercial Banks
• Awareness on the positive impact of RE
• Funding for the Project Management Activities
• Sustainability question
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Collaboration and Support for AtRE
• Investment in Renewable Energy Projects
• Training/Capacity building for renewable energy
project stakeholders
• Technology Transfer
• Funding for the management and expansion of the
Access to Renewable Energy project
• Policy development
• Multilateral and intergovernmental collaboration
• Projects Monitoring and Evaluation
• Project Management Support (Unfunded
Bugdet)

24. Conclusion
Think
Globally
Economic
Growth/Climate
Change
Mitigation
Renewable
Energy
Development
Act Locally
Renewable Energy & Climate Change
by: L.Y. Gada.
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Thank You