Energy transition is Nigeria’s next growth frontier — Chief Executive Officer, Winock Holdings Sanmi Lajuwomi
With all that is happening in the country now, would you say now is the best time for Nigeria’s energy Transition?
In 2018, Solar began to gain serious traction in underserved communities because it was 50 per cent cheaper than running a petrol generator, however the COVID-19 pandemic increased cost due to dollar rate, whereas the cost of petrol did not increase because it was subsidised. This event significantly slowed down the demand for solar. However, now that petrol subsidy has been removed, and the rate of dollar is determined by the market, demand for solar is returning to pre-COVID-19 levels. Furthermore, the Nigerian government has indicated interest in providing licenses to renewable energy operators to develop large scale solutions to supply customers directly.
Would you say that energy transition is Nigeria’s next growth frontier?
Yes, energy transition is Nigeria’s next growth frontier. Indeed, if agriculture and manufacturing industries are to be developed rapidly, there is a need to ensure constant supply of distributed electricity, and renewable energy, especially Solar, is the quickest way to meet this supply gap.
How practicable do you think this is for Nigeria? It is a huge task! Can this sustain us?
Renewable energy transition is very practicable if the economy is stable. To illustrate, most Nigerians use electricity primarily for lighting, fan, and refrigeration, and they are used to generating electricity themselves with petrol generators. Petrol generators can easily be replaced with roof top solar that can be installed by a professional in less than 2 hours. So, with good government policies, we can rapidly replace petrol generators with Solar. Furthermore, with the further deregulation of the power industry, power developers can quickly implement small scale hydropower projects in areas that have less radiation and are less viable for solar.
Do you think Nigeria is ready for this transition?
Yes. Nigeria is ready for this transition because Nigerians want stable electricity, and the country is blessed with natural resources that will enable the production of very affordable electricity through renewable sources.
What gives you the most hope?
What gives me the most hope is that Nigeria is very blessed with all the necessary resources to ensure a viable energy transition, and we are also blessed with very experienced professionals that can provided quality services to ensure a success transition.
Does Nigeria need frontier exploration or renewable energy funds?
Nigeria needs both frontier exploration and renewable energy funds because there are other products that can be derived from oil and gas, therefore the country can add value to its economy by investing in both.
Would you rather say oil and renewables should co-exist?
Yes, they can co-exist, because the cost of solar depends on the rate of sunshine available in a location, whereas same location could be viable for oil and gas sources. Overtime as technology improves and cost reduces, renewable sources will naturally replace oil and gas. Can Nigeria really achieve its Net-zero targets? We have debts to pay! Yes, Nigeria can achieve its net-zero targets, but realistically, we need to plan for gradual improvement over a century to avoid any undesired effect on our economy.
What would be your advice to the Federal Government?
I would like to say that the Nigerian government needs to properly use the Rural Electrification Agency to empower local entrepreneurs through technical support to ensure that the energy transition can be a collaborative effort between the government and private businesspeople, which will increase the chances of achieving the Net-zero target.
