’Power for all’ – a global campaign organisation that seeks to accelerate the deployment of decentralized renewable energy as the best solution to universal energy access has urged the Nigerian government to understudy Kenyan and Tanzanian model to enable it drive efficient renewable energy transition in the country.
Nigeria’s Rural Electrification Agency,REA has put the figure of Nigerians without access to grid powered electricity at about 90 million Nigerians,which has inadvertently opened opportunity for decentralised renewables,and zthe energy transition in the country.
On the back of this development,industry analysts are worried that the Nigerian government slamming of 20% on solar power components importation into the country is a key impediment in improving access to Nigerians who are unconneted to the national grid for energy access.
Speaking at power Jobs 2019 Census,Ify Malo,the country campaign director for Power for All in Nigeria and CEO Clean Technology hub innovation centre informed BusinessDay that the federal government could spike up its job creation efforts if it adopts a better model in opening up the renewable energy sector.
She said,”In the East Africans countries of Kenya and Tanzania,what they did differently was to completely eliminate duties and tarrifs in solar panels and components. They said please bring in these things for free.
“What that did was two things.First,reduce barriers to entry for countries that wants to do this as a business,and actually made the cost to the end users reduce and which makes it more affordable.
She states in addition that,”When we are talking of customs in Nigeria,the fact that customs decides to slam 20% tax on this solar components means that the cost is passed to the end users .It makes it difficult for the people who wants to use this solar business to bring in those good.”
According to her,”That is why the Ministry of Power and even the Vice President’s office needs a wholistic intervention on this issue, because it has a caution effect on their job policy,growth policy,and their economic policies.”
Speaking on incentivising the sector by the government,she said,”If you look at the way China has grown,it is because of deliberate government policies-where they are actually investing in their local economy,and local investors,local developers and distributors,before advancing talks for foreign investments in the sector.
“Take for instance,if someone wants to builds some sorts of solar assembly plants,the government should give some sorts of incentives. If those incentives exists,there would surely be power for all.
In his earlier response, during a panel discussion,A.D Abubakar,director renewable energy and rural power access development,in the federal Ministry of power,works and housing told BusinessDay on the sidelines that the Ministry is already having an advanced discussions with the Nigerian Customs Service to ensure the tax on solar components doesn’t constitute a barrier to private investors willing to invest into the Nigeria’s renewable energy sector.
HARRISON EDEH,ABUJA
