Panel Advocates Policy Consistency to Attract Investment in Energy Sector

Adibe Emenyonu in Benin City

Panellists at the African Natural Resource and Energy Investment Summit in Edo state, have called for policy consistency and collaboration in order to attract the needed investment in the energy sector in Nigeria.

Delivering an address, the Managing Director, Edo State Investment Promotion Agency (ESIPO), Mr. Kelvin Uwaibi who headed the panel, highlighted the importance of policy consistency and collaboration among various stakeholders.

Emphasising the need for a stable environment to attract the much-needed investment in Nigeria, particularly in the energy sector, Uwaibi, also noted that investors require a predictable policy landscape to make informed decisions.

 “Policy has to make sense for financing to work. Everything starts with policy. We are on the right path in Nigeria as power has been moved to the concurrent list. This has been a problem for sub-nationals when the laws of the land become the hindrance to sub-nationals providing electricity to their people,” he said.

Investors, Uwaibi said, are keen to witness policy consistency and sustainability plans to ensure their investments remain secure.

“They (investors) don’t want policy somersaults after they’ve gone to source funding for projects. The necessity of a prolonged period of policy consistency across all sectors in Nigeria, which would instil confidence in investors regarding the country’s documentation and processes are very key to attracting investor to Nigeria, “he stressed.

Uwaibi further harped on the need for clear demarcation of responsibilities among different levels of government, pointing out that local governments have often abandoned their responsibilities for state governments, some of which have also left theirs for the federal government.

Uwaibi also raised concerns over the absence of data sharing among government agencies, noting the importance of a single platform for data sharing to enhance transparency and efficiency.

He cited the example of the Rural Electrification Agency (REA), which conducts feasibility studies, but faces challenges in disseminating their findings. On collaboration which was another key theme in Uwaibi’s address, he proposed splitting electrification into commercial and residential sectors as well as focusing on strategies that encourage industrial electricity clusters, such as the production hubs in Edo State.

Leading the discussion at the panel, the Managing Director/CEO, REA, Mr. Ahmad Salihijo, highlighted the importance of a robust electrification plan and efforts to close infrastructure gaps in underserved areas, stressing the need for all stakeholders to collaborate on the comprehensive plan.

To bridge the financing gap, Salihijo underlined the importance of adopting commercialised aspects of electrification and using them as models for scaling up projects.

He also mentioned the involvement of local communities through cooperatives as a means to promote ownership and sustainability.

On his part, the Country Director, Husk Power System, Olu Aruike, echoed the need for suitable financing, emphasising the transition from merely electrifying communities to empowering them.

His discussion centred on the high cost of capital for Indian financing projects in Nigeria where he highlighted the potential benefits of blended financing.

Programme Manager, Sustainable Energy for All, Ruchi Soni, proposed that subsidies and grants should serve as the foundation for electrification financing, reinforcing the importance of financial support for critical initiatives.