FG flaunts renewable energy opportunities to Netherlands trade delegation

…highlights $750m investment, policy incentives

The Federal Government has showcased its vast renewable energy opportunities to a visiting trade delegation from the Netherlands, emphasising investment potentials, policy incentives, and ongoing initiatives aimed at positioning Nigeria as West Africa’s renewable energy hub.

Abba Abubakar Aliyu, Managing Director of the Rural Electrification Agency (REA), Speaking during an engagement with the visiting Netherlands trade delegation, highlighted the Federal Government’s commitment to deepening private sector participation in renewable energy.

He noted that the recently signed Electricity Act by President Bola Tinubu had created a more favorable environment for investment, encouraging foreign partners to key into Nigeria’s clean energy transition.

“Nigeria has the highest number of people without access to electricity, but the present government is determined to turn this challenge into an opportunity, We want to leverage renewable energy to drive industrialization, create green jobs, and enhance rural electrification,” Aliyu stated

Aliyu disclosed that the Government had committed over $750 million, along with an additional $200 million from the Japan International Cooperation Agency (JICA), to boost renewable energy projects. The federal budget also includes over $100 billion dedicated to solar energy initiatives.

The Dutch delegation, led by Rogier van Tooren, expressed enthusiasm about Nigeria’s renewable energy market, particularly in solar power and mini-grid systems. He noted that despite the Netherlands having extensive solar installations, the country lacks the natural sunlight Nigeria enjoys.

“The Netherlands is very proud to be here today with a group of Dutch companies which are active in the Nigerian solar power and energy market, also in small grids. And you have something in Nigeria, which is very special and which we’re very jealous of in the Netherlands. And it’s called the sun.

“We have a lot of solar power installed in the Netherlands, but we have very limited solar, actually sun hours, and something that you have plenty of in Nigeria. The potential is enormous, and we are eager to contribute our expertise in optimizing solar power generation and grid solutions,” van Tooren said.

Read also: West Africa secures €100 million investment for renewable energy  

Similarly, Emmanuel Lonaza, Deputy Director of the Nigerian Investment Promotion Commission (NIPC), outlined key incentives, including a pioneer tax status offering up to five years of tax holidays for new investors and a one-stop investment center to ease business registration and operations.

He outlined Nigeria’s investment-friendly policies, including tax holidays, streamlined registration processes, and enhanced collaboration opportunities.

He emphasised that the country has vast untapped opportunities, further reinforced by the Renewable Energy Master Plan, a strategic framework aimed at increasing the share of renewables in Nigeria’s energy mix.

Lonaza noted that the Renewable Energy Master Plan, last updated in 2012, set ambitious targets, including: Generating 10% of Nigeria’s electricity from renewables, Achieving a 30% renewable energy contribution to the national electricity mix, Developing over 8,000 megawatts (MW) of renewable energy capacity by 2025

However, he said that with 2025 already underway and many of these targets yet to be fully realised, Lonaza stressed that this gap represents a significant opportunity for investment.

To encourage foreign direct investment (FDI), the NIPC has introduced several policy incentives, including the Pioneer Status Tax Holiday. Under this scheme, eligible investors receive, Three years of tax exemption upon entry, A possible two-year extension based on reinvestment and business expansion, A total of up to five years of tax relief to support business growth

“This initiative is designed to allow investors to reinvest profits into their businesses rather than paying taxes in the initial years,” Lonaza explained.

Umar Mohammed, Head of Renewable Energy at the Nigerian Electricity Regulatory Commission (NERC), detailed Nigeria’s robust regulatory framework designed to attract investors. He emphasised ongoing reforms, including a renewable energy auction in collaboration with the World Bank and a net metering regulation that will enable consumers to sell excess power to the grid.

He said, “The Commission is also supporting sub-national electricity regulatory Agencies, with 10 States already establishing their own versions of NERC to facilitate investments at the state level.

On her part, Caroline Kemen Niagwan, Deputy Comptroller-General of Customs, assured investors of streamlined trade facilitation measures. She highlighted zero percent import duties on solar panels, simplified customs procedures, and programs such as the Authorized Economic Operator Program, which ensures faster clearance for compliant businesses.

“Another one is the Authorized Economic Operator Program, which we just launched. We launched on the 14th of February, and implementation started on the 17th of February. This is an initiative of the World Customs Organization of the safe framework of standards, and it’s to enhance security in the international supply chain as well as facilitate legitimate trade”, she said.