Inadequate financing triggered by the recent economic recession has been identified as a major constraint to Nigeria’s transition to renewable energy.
Speakers at a seminar on “Start-ups in Renewable Energy”, organised by the Consulate-General of the Federal Republic of Germany, Lagos in conjunction with the Delegation of German Industry and Commerce in Nigeria, said the impact was felt more in foreign borrowing.
According to the delegation’s Head of Energy and Environment Desk, Mrs Barbel Freyer, while speaking with The Guardian said, access to financing for proper start-ups in renewable energy had been hampered as the recession triggers unpredictable exchange rate which does not encourage external borrowing.
She said, although the market is very huge, financing, has remained a problem, compounded by the unpredictable exchange rate that discourages borrowing.
Freyer, who spoke on the sidelines, said the impact of the unfavourable business climate occasioned by recession had affected interested investors.
According to her, there is a need for collaboration between the relevant stakeholders to facilitate the transition to renewable energy.
The seminar, a continuation of 10 successful ones on the potentials of renewable energy in Nigeria started in 2014, is aimed at giving young and creative German and Nigerian entrepreneurs with innovative ideas and sustainable business model a platform to share their experiences and introduce their business models and products.
Partnerships and Expansion Manager at Mobisol in Berlin, Germany, Ekene Aina, who was one of the lead presenters, stressed that the company had transformed the original idea into a business model and built the right team by securing financing from DEG in 2010.
She said the company has transformed into a major solar home system business in East Africa, servicing over 300,000 people with clean affordable and reliable solar energy, through further support from international partners in the last six years.